Hexcel's net income for the 2010 second quarter was $23.1 million, compared to $16.8 million last year.
"We are pleased with the recent sales trends, which are in line with our June 2nd revised outlook," Hexcel CEO David Berges comments. "Commercial aerospace sales were up 18% in constant currency over the prior year but still well below the peak second quarter of 2008, with particular strength from new aircraft programmes. Space & Defense sales continue steady and strong, as they were up nearly 8% in constant currency as rotorcraft sales offset the F22 decline. Wind energy sales recovered after a significant customer-led inventory correction during the first quarter; up over $20 million compared to the first quarter and just higher than the run rate of the last three quarters of 2009."
Hexcel expects to see continued double-digit sales growth through the rest of 2010.
"Each of our key new large commercial aircraft programmes grew both sequentially and year-over-year this quarter," says Berges. "This secular penetration of composites, layered on top of recent announcements of increased aircraft build rates and our success in the growing rotorcraft business give us confidence that this pace of growth could continue for the foreseeable future."
Commercial Aerospace
Hexcel reports sales to the commercial aerospace sector of $161 million, up 16.8% (18.1% in constant currency) for the 2010 second quarter compared to the second quarter of 2009. Revenues from new aircraft programmes (A380, A350, B787, B747-8) were double those of the same period of 2009 and represented more than 20% of commercial aerospace sales.
Sales to other commercial aerospace sectors, including regional and business aircraft customers, were just above the second quarter of 2009 and the first quarter of 2010.
Space & Defense
Sales to the Space & Defense sector of $79.4 million were up by 6.3% (7.6% in constant currency) compared to the second 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.
Industrial
Total sales to Industrial markets were $64.7 million for the second quarter of 2010, level (3.9% higher in constant currency) with last year and up 68% sequentially on the first quarter of 2010. All other industrial markets were up both sequentially and year-over-year with the exception of sales to the American Centrifuge Project, which was put on hold in August of 2009. Hexcel says it is still optimistic about the longer term prospects for prepreg sales for the wind turbine market but is cautious about the timing of the return to significant growth.
Hexcel Corporation (NYSE: HXL) is an advanced composites company headquartered in Stamford, Connecticut, USA.