Hexagon Composites posts interim results for Q4 2013

Operating profit (EBIT) came to NOK 12.8 (-7.5) million, whilst profit before tax totalled NOK 7.8 (-11.7) million. The results in the quarter were negatively affected by guarantee provisions of NOK 10 million and inventory write-downs of NOK 11 million.

The quarterly result was positively impacted by an insurance refund of NOK 7.4 million. Goodwill in Hexagon Raufoss has been written down by NOK 3.9 million during the quarter. Operating profit in the quarter includes a charge of NOK 1.9 million from the Russian joint venture company Rugasco. The results exclude Hexagon Devold.

Hexagon Composites cites a number of significant events since the previous report:

  • Sale of Hexagon Devold to Saertex GmbH & Co. KG
  • Strong growth in demand for heavy-duty vehicle fuel tanks
  • Substantial sales of TITANTM modules in North and South America
  • Introduction of the Euro 6 standard with effect from 1 January 2014, which makes natural gas powered buses more competitive in comparison with diesel buses
  • Several orders for LPG cylinders from markets outside Europe
  • Formal Russian approval of Rugasco's LPG cylinder

Excluding Hexagon Devold, the Group generated operating income of NOK 1,280.1 (857.4) million for the year 2013, an increase of 49%. Operating profit before depreciation (EBITDA) was NOK 201.9 (87.0) million, an increase of 132%. Operating profit (EBIT) amounted to NOK 139.1 (31.9) million. Profit before tax totaled NOK 128.2 (19.2) million.