Business Slowdown Reported by Hexagon Manufacturing Intelligence

Hexagon has released its 3rd quarter 2019 group financial results. The Industrial Enterprise Solutions division which includes metrology systems that CAD (computer-aided design), CAM (computer-aided manufacturing) and CAE (computer-aided engineering) software. These division’s solutions optimize design, processes and throughput in manufacturing facilities and create and leverage asset management information critical to the planning, construction and operation of plants and process facilities in a number of industries, such as automotive, aerospace and oil and gas. Industrial Enterprise Solutions consists of Manufacturing Intelligence and PPM.

Industrial Enterprise Solutions (IES) net sales amounted to $489.0 million (482.5 MEUR ). Using fixed exchange rates and a comparable group structure (organic growth), net sales decreased by -5 per cent. Regionally, organic growth was 5 per cent in the Americas, – 4 per cent in EM EA and -13 per cent in Asia. In Americas, North America recorded mid-single digit organic growth, mainly driven by strong growth in power and energy and aerospace. In EM EA, Western Europe slightly declined, hampered by a slowdown in Germany and the UK. However, the Nordics recorded double-digit organic growth. Eastern Europe and Russia declined in the quarter. In Asia, China recorded a – 24 per cent organic revenue decline, largely driven by the expected significant decline in the electronics business. South Korea, India and Malaysia recorded double-digit organic growth.

Regarding the divisions within IES, Manufacturing Intelligence recorded – 9 per cent organic growth, largely driven by the previously communicated significant decline in the electronics business in China and weak demand in automotive which offset continued good growth in aerospace.

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