Hexcel reports operating income for the 2010 third quarter of $34.5 million, compared to $19.6 million for the same quarter last year. Net income for the third quarter of 2010 was $15.6 million, compared to $10.4 million in 2009.
"We are pleased with the sales trends from the last two quarters, which are in line with our June 2nd outlook of a return to growth," commented Hexcel CEO David Berges. "Commercial Aerospace and Industrial market segment sales were both up over 20% in constant currency over the prior year third quarter, and Space & Defense sales continue strong, up about 2% in constant currency.
"While we may see some moderation of our growth rate in the fourth quarter due to year-end inventory corrections or programme delays, recent order announcements by our major aerospace and wind customers allow us to reaffirm our outlook for double digit growth trends in the mid-term," he continued. "Our 2010 performance has established a new, higher operating income baseline from which we still target incremental operating margins of over 20% on the year-over-year sales growth."
The Hexcel Commercial Aerospace business recorded sales of $157.6 million, up 23.6% (26.4% in constant currency) on the third quarter 2009. Revenues attributed to new aircraft programmes (A380, A350, B787, B747-8) doubled versus the same period last year and represented more than 20% of Commercial Aerospace sales for the second quarter in a row.
Space & Defense
Space & Defense sales of $74.4 million were flat (up 1.8% in constant currency) compared to the third quarter of 2009. Hexcel says it is continuing to benefit from participating in a wide range of programmes which help offset the impact of the wind-down of the F22 programme that started in the fourth quarter of 2009.
Hexcel reports total sales in the Industrial sector of $62.5 million for the third quarter of 2010 were up 13.4% (21.8% higher in constant currency) with good year-over-year growth from all sub-markets. Sales to the wind energy sector were up over 20% on a constant currency basis over 2009's low third quarter, but about the same as the second quarter of 2010. Hexcel is still optimistic about the longer term prospects for prepreg sales for wind turbines but remains cautious about the timing and pace of a return to growth.
Hexcel Corporation (NYSE: HXL) develops, manufactures and markets composite materials, including carbon fibres, reinforcements, prepregs, honeycomb, matrix systems, and composite structures.