"Our fourth quarter performance was consistent with our expectations in light of the challenging sales environment," comments Hexcel CEO David E. Berges. "Our sales were slightly higher than the third quarter on a constant currency basis and we made modest sequential improvements in gross and operating margins."
Commercial aerospace
Hexcel's sales to the Commercial Aerospace sector were $137.1 million for the 2009 fourth quarter, down 4.3% (7.2% in constant currency) on 2008. There was a large increase in Boeing sales in the 2009 quarter, while sales to Airbus and its subcontractors declined as compared to last year. Sales for both Airbus and Boeing aircraft were higher than the third quarter of 2009.
Sales to regional and business aircraft customers were down more than 40% from the fourth quarter 2008 as a result of announced production cut-backs.
For the full year 2009, Hexcel sales to Commercial Aerospace fell 21.7% (20.3% in constant currency) from 2008.
Sales to new large aircraft programmes (A380, B787, A350, and B747-8) were up for the 2009 quarter versus 2008 as well as the third quarter and represented more than 15% of Hexcel's Commercial Aerospace sales for the first time.
Space & Defence
Space & Defence sales of $73.0 million for the 2009 fourth quarter were 7.2% lower on a constant currency basis than the 2008 fourth quarter as a result of lower F22 sales due to the impending programme end. Hexcel full year 2009 Space & Defence constant currency sales were just above 2008.
Industrial
Industrial sales of $56.5 million for the fourth quarter of 2009 were down 25.6% on a constant currency basis on the 2008 quarter. For the full year, Industrial sales were $252.7 million, down 15.4% adjusted for currency changes despite particularly strong wind energy revenues in the first quarter of 2009.
While wind energy revenues for the full year 2009 were about 15% lower than 2008 in constant currency, the run rate for the last three quarters has been about 25% lower than 2008 sales levels.
Sales to recreation, automotive and other general industrial markets remained depressed, Hexcel says, reflecting weak markets, the accumulation of selective portfolio pruning and the interruption to the USEC's American Centrifuge Project.
2010 outlook
Hexcel foresees flat to slightly declining revenue on a constant currency basis for 2010, with the first quarter being the weakest, particularly when compared to 2009's relatively strong first quarter. However, with the recent successful first flights for several aerospace programmes and solid progress on other new programmes, the company says it remains encouraged by the demand shift to larger, more composite-intensive aircraft that will benefit it in 2010 and beyond.
While the global push for renewable energy remains strong, Hexcel says there have been fewer turbine project announcements in recent quarters and as a result, it remain cautious for 2010.
Hexcel Corporation, headquartered in Stamford, Connecticut, USA, develops high-performance structural materials, including carbon fibres, reinforcements, prepregs, honeycomb, matrix systems, adhesives and composite structures.
| Commercial Aerospace | Space & Defence | Industrial | Total | |
| Composite Materials | 384.7 | 220.5 | 251.3 | 856.5 |
| Engineered Materials | 171.5 | 78.9 | 1.4 | 251.8 |
| Total | 556.2 (50%) | 299.4 (27%) | 252.7 (23%) | 1108.3 (100%) |
