Operating income for the 2012 third quarter was $60.0 million, compared to $46.0 million in 2011, while net income for the third quarter of 2012 was $39.8 million, compared to $32.2 million in 2011.
“Hexcel’s results continue to be strong, as solid execution and increased sales combined to yield another quarter with excellent performance," states Hexcel CEO David Berges. "For the quarter, adjusted operating income grew 23% over the same period last year on 13% constant currency revenue growth, resulting in a 150 basis point improvement in operating margins.”
Sales by market
Sales in Hexcel's Commercial Aerospace business segment were $234.1 million for the 2012 third quarter, an increase of 12.9% (13.6% in constant currency) on the third quarter of 2011.
Revenues attributed to new aircraft programmes (A380, A350, B787, B747-8) were up more than 30% on the same period last year and comprise about 30% of Commercial Aerospace sales. Sales for Airbus and Boeing legacy aircraft comprise more than half of commercial aerospace sales and were up about 9% compared to the third quarter of 2011.
Sales to 'Other Commercial Aerospace,' which includes regional and business aircraft customers, were about the same as the third quarter of 2011, though about 10% lower than first half levels.
In the Space & Defense sector, Hexcel's sales were $90.6 million in the 2012 third quarter, up 12% (14.4% in constant currency) than the third quarter of 2011.
In the Industrial sector, Hexcel reports sales of $66.9 million for the third quarter of 2012, 5.4% higher (11.5% in constant currency) than the third quarter of 2011. Sales to wind turbine manufacturers were up significantly from last year’s third quarter, but were down almost 20% on the second quarter of 2012. Hexcel states this is the result of a US slowdown.
2012 outlook
Hexcel (NYSE:HXL) has updated its 2012 outlook.
The company expects sales to be in the range $1.56-1.59 billion (previously $1.55-1.65 billion).
The strengthening of the US dollar against the Euro and the GBP results in a reduction of its reported sales. At today’s exchange rates, Hexcel predicts its reported sales for the full year will be $35-40 million down on the rates forecasted at the beginning of the year.
Hexcel Corporation, headquartered in Stamford, Connecticut, USA, develops, manufactures and markets composite materials, including carbon fibres, reinforcements, prepregs, honeycomb, matrix systems, and composite structures.
