"As a result of the recently announced increases in aircraft build rates over the next few years by Airbus and Boeing, as well as the continued progress on new aircraft programmes, we are increasingly optimistic about the rest of 2010 and the next several years thereafter," says Hexcel CEO David Berges.
"If our demand is in line with the announced build rates and the new programmes ramp-up as expected, we would expect to average double digit sales growth (in constant currency and on a year-over-year basis) for the total company, beginning in the second half of 2010 and for the next several years. This growth would be led by the expected steady ramp in production of new composite intensive aircraft."
Commercial Aerospace
With announced increases in aircraft production and the contribution of new programmes (A380, B787, B747-8 and A350), Hexcel believes its total commercial aerospace revenues could grow at an average rate of 12-16% through 2013. This rate of growth would mean the company could double its 2009 revenues of US$556 million in five years.
This projected growth rate assumes Hexcel's regional and business jet sales grow at a modest 5% per year from the last 12 months ending 31 March 2010 sales levels.
Space & Defense
Hexcel expects its Space & Defense revenues to be slightly above 2009 as the wind down in the F-22 programme is offset by growth in rotorcraft programmes. In the years ahead, downside risk on the C-17 programme should be offset by potential increased revenues from rotorcraft, the A400M and Joint Strike Fighter (F-35). Thus, modest year over year growth could be expected for the next several years.
Industrial
Hexcel says that while wind energy sales are difficult to predict, it expects sequential quarterly growth and a return to at least the sales levels of the second half of 2009. The company's largest customer recently announced a target average growth rate of 15% per year through 2015, but Hexcel says its remains cautious about the near term. For the rest of industrial sales the company expects modest GDP-type growth until USEC's American Centrifuge Project is restarted.
Hexcel markets carbon fibres, reinforcements, prepregs, honeycomb, matrix systems, adhesives and composite structures, used in commercial aerospace, space and defence and industrial applications.