Year-end report 2018

Fourth quarter 2018 – Increased sales and higher operating profit

  • Sales increased 22 per cent to 3,557 MSEK (2,926).
  • Operating profit increased 12 per cent to 522 MSEK (467).
  • Operating margin amounted to 14.7 per cent (16.0).
  • Profit after tax amounted to 405 MSEK (449 incl. non-recurring effects of 104 MSEK of the US tax reform).
  • Earnings per share amounted to 1.18 SEK (1.31 incl. non-recurring effects of the US tax reform).
  • Operating cash flow increased to 679 MSEK (609).
  • In early October, 80 per cent of the shares in Mesgo Group, a leading Compounder in Europe within advanced compounds, was acquired.

Full year 2018 – Increased sales and higher result

  • Sales increased 13 per cent to 13,770 MSEK (12,230).
  • Operating profit increased 8 per cent to 2,150 MSEK (1,986).
  • Operating margin amounted to 15.6 per cent (16.2).
  • Profit after tax increased 8 per cent to 1,646 MSEK (1,527).
  • Earnings per share increased 8 per cent to 4.78 SEK (4.44).
  • Operating cash flow increased to 2,019 MSEK (2,001). 
  • Two strategic acquisitions, Kirkhill Rubber and Mesgo Group.
  • The Board of Directors proposes a dividend of 2.25 SEK per share (1.95) an increase by 15 per cent.

President’s comments

“The fourth quarter of 2018 was another strong quarter. The sales increased by 22 per cent, the volume development were positive and operating profit increased by 12 per cent. We are very pleased with our two latest strategic acquisitions, Kirkhill Rubber and Mesgo Group. These acquisitions have given us a better position within advanced elastomers and have broadened our geographical presence in three new countries and have strengthen our position in western US.

   The full year 2018 was our best year so far with 13 per cent higher sales and improved result. Our financial position remains strong and we are well equipped for further expansion.”

Mikael Fryklund, President and CEO

Year-end report 2018

HEXPOL is a world-leading polymers group with strong global positions in advanced polymer compounds (Compounding), gaskets for plate heat exchangers (Gaskets), and plastic and rubber materials for truck and castor wheel applications (Wheels). Customers are primarily systems suppliers to the global automotive and engineering industry, construction industry, the energy, oil and gas sector, medical equipment manufacturers and OEM manufacturers of plate heat exchangers and forklifts. The Group is organised in two business areas, HEXPOL Compounding and HEXPOL Engineered Products. The HEXPOL Group’s sales in 2018 amounted to 13,770 MSEK. The HEXPOL Group has approximately 4,600 employees in fourteen countries. Further information is available at www.hexpol.com.

This press release consists of such information that HEXPOL AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 a.m. CET on February 1, 2019. This report has been prepared both in Swedish and English. In case of any divergence in the content of the two versions, the Swedish version shall have precedence.

For more information, please contact:

Mikael Fryklund, President and CEO
Tel: +46 (0)40 25 46 61

Karin Gunnarsson, Chief Financial Officer/ Investor Relations Manager
Tel: +46 (0)705 55 47 32