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Q4 sales lift 10.5% at composites producer Hexcel

28 Jan '15

2 min read

Advanced composites producer, Hexcel Corporation said its sales lifted 10.5 per cent from a year ago quarter in the fourth quarter ended December 31, 2014.

Net sales during the fourth quarter were $471.8 million, 10.5 per cent higher than $426.8 million reported for the fourth quarter of 2013.

Operating income for the reporting quarter totaled $77.1 million, compared to $67.0 million in the corresponding quarter of last year.

According to Hexcel, sales growth and continued improvement in operating performance resulted in gross margin of 27.2 per cent from 26.5 per cent in the fourth quarter of 2013.

The tax provision for the quarter under review was $22.4 million resulting in an effective tax rate of 29.9 per cent as against $18.8 million and an effective tax rate of 28.7 per cent in the prior year quarter.

Net income for the fourth quarter of 2014 reached $52.9 million or $0.54 per diluted share as against $47.1 million or $0.46 per diluted share in same quarter of 2013.

“In 2014, Hexcel generated $58 million of free cash flow versus $78 million in 2013, primarily reflecting higher capital expenditures, partially offset by higher earnings,” Hexcel said.

During the year, the company used $160 million to repurchase shares of its common stock and added that there is $100 million remaining under the authorised share repurchase program.

Total debt, net of cash as of December 31, 2014 was $345.4 million, an increase of $115.9 million from December 31, 2013.

In its outlook for 2015, Hexcel expects sales to be $1.9-$2.0 billion, adjusted diluted earnings per share of $2.26 to $2.38 and free cash flow of $10-$60 million.

CEO Nick Stanage said, “Hexcel delivered another strong quarter to end the year with record sales, operating income, margins and net income.”

“As outlined in our 2015 guidance, our focus will be on driving manufacturing throughput, capacity expansion and superior execution to prepare for production ramp up that begins this year,” Stanage added.

Hexcel develops, manufactures lightweight, high-performance structural materials, including carbon fibres, reinforcements, prepregs, honeycomb, matrix systems, adhesives and composite structures.

These are primarily used in commercial aerospace, space and defense and industrial applications such as wind turbine blades. (AR)

Fibre2fashion News Desk - India