Hexcel Corporation has reported Q3 sales of US$500.5 million, up 11.5% from the same period in 2015. Operating income was US$89.1 million, 17.8% of sales, as compared to US$78.0 million, 17.4% of sales in 2015.
‘This was another strong quarter for Hexcel, with solid execution leading to excellent results,’ said chairman, CEO and president Nick Stanage. ‘ We delivered a solid gross margin of 28.2% and operating income margin of 18.0% in the first nine months of 2016, and we are particularly pleased with our working capital performance and the resulting impact on our free cash flow. Our free cash flow for the first nine months of 2016 of US$55 million is a US$140 million improvement over last year.’
Commercial Aerospace sales, which account for 72% of total sales, drove the quarter’s results. Sales, led by the A350 XWB, were 15.1% higher in constant currency than the third quarter of 2015. Space & Defense sales were 5.4% higher in constant currency than last year. Industrial sales were 3.2% higher in constant currency than last year.
‘We expect 2016 to be another record year,’ said Stanage. ‘We have increased our guidance for adjusted diluted EPS to a range of US$2.52 to US$2.58 (previously was US$2.48 to US$2.56) on sales of US$2.00 to US$2.03 billion (previously was US$1.99 to US$2.05 billion), as we do not expect our fourth quarter to be quite as strong as the third quarter. Our focus remains on superior execution to prepare for the substantial production ramp up of new programs, led by Commercial Aerospace. We continue to be well aligned with our customers’ needs and are fully prepared to meet the increasing demands for innovative composite products and solutions to support their growth.”
The company’s revised full year sales outlook has been narrowed to US$2.00-$2.03 billion, from the previous margin of US$1.99-US$2.05 billion.
This story is reprinted from material from Hexcel, with editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.