Half-year report, January - June 2011

| Source: HEXPOL AB HEXPOL AB 

Half-year report, January - June 2011

 

Second quarter of 2011 - Sharp growth with further improved margins

  · Net sales increased sharply and amounted to 1,776 MSEK (966).
  · Operating profit amounted to 230 MSEK (116), up 98 per cent.
  · The operating margin rose to 13.0 per cent (12.0).
  · Profit after tax increased sharply to 158 MSEK (80).
  · Earnings per share rose strongly and totalled 4.58 SEK (2.73*).
  · Operating cash flow amounted to 201 MSEK (117).

First half of 2011 - Sharp growth with strong margins - successful
integration of Excel Polymers Group

  · Net sales increased sharply and amounted to 3,562 MSEK (1,716).
  · Operating profit amounted to 440 MSEK (203), up 117 per cent.
  · The operating margin rose to 12.4 per cent (11.8).
  · Profit after tax increased sharply to 297 MSEK (138).
  · Earnings per share rose strongly and totalled 9.30 SEK (4.70*).
Earnings per share based on the number of shares outstanding at the
close of the period amounted to 8.63 SEK.
  · Operating cash flow was 344 MSEK (179).
  · A new share issue was completed during the first half of the year,
generating funds totalling approximately 539 MSEK.
  · Rapid and successful integration of Excel Polymers Group, which was
acquired on November 30, 2010.
  · Cost synergies in the acquisition were more substantial and realised
more rapidly than expected.

President's comments

“Our forceful growth has continued with sharply higher sales in all
units. We have also further improved our margins as a result of high
capacity utilisation in most of our production units. The integration of
Excel Polymers Group has been completed and the units are successfully
integrated on a geographical basis in the HEXPOL Compounding business
area.

Group sales rose 84 per cent, of which organic growth accounted for
approximately 23 per cent, and, once again, we managed the volume growth
in a flexible manner. Operating profit (EBIT) increased 98 per cent to
230 MSEK (116) and our operating cash flow remained strong, amounting to
201 MSEK (117). Earnings per share rose sharply and amounted to 4.58 SEK
(2.73*).

Growth and earnings developments were strong during the first six months
of the year. Earnings per share rose to 8.63 SEK (4.70*), based on the
actual number of shares, with a continued strong operating cash flow and
improved operating margins.”

Georg Brunstam, President and CEO

For further information, contact:

Georg Brunstam, President and CEO
Tel: +46 708 55 12 51

Urban Ottosson, CFO
Tel: +46 767 85 51 44

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