Hexagon AB has reported its second quarter 2022 financial results with an operating net sales increased by 20 per cent to 1,288.7 MEUR. Using fixed exchange rates and a comparable group structure (organic growth), net sales increased by 6 per cent. Regionally, organic growth was 10 per cent in the Americas, 5 per cent in Asia and 4 per cent in EMEA. In the Americas, North America recorded 7 per cent organic growth, driven by solid demand across most industries. South America continued to record high double-digit organic growth driven by strong growth in mining, agriculture and power and energy. In Asia, China recorded 1 per cent organic growth, driven by growth in aerospace and general manufacturing, but hampered by component availability issues in infrastructure and construction, as well as COVID-19 related lockdowns. The rest of Asia performed well, primarily driven by strong demand for surveying solutions in India, Japan and South Korea. In EMEA, Western Europe recorded 7 per cent organic growth, fuelled by strong demand for surveying solutions, reality-capture solutions and solid growth in the aerospace, power and energy segments. Russia declined significantly, reflecting the impact of the sanctions imposed by the European Union and the U.S., Eastern Europe and the Middle East recorded strong organic growth.
“We continued to see strong customer demand for our solutions, resulting in 20 per cent sales growth of which 6 per cent was organic growth. The record gross margin, despite inflationary pressures, is a testament to the strength of our business model. The continued challenging supply chain situation impacted organic growth by approximately -6 per cent in the quarter. We are now starting to see improvements in the supply of certain components, and we expect a resolution by the end of the year. After more than two years of restrictions related to the pandemic, we were finally able to host a very successful HxGN Live Conference, with three thousand participants in person and five thousand virtually. We introduced new and disruptive solutions to scale growth and further our vision. During the quarter, we also announced several changes in the leadership of Hexagon, including my future successor, Paolo Guglielmini. I’m happy that we have found an internal successor, which will bring not only long-term stability and continuity but also well needed rejuvenation in preparation for Hexagon’s next big strategic leap.” commented Ola Rollén, President and CEO, Hexagon AB.
The Hexagon Industrial Enterprise Solutions (IES) division operating net sales amounted to 638.3 MEUR. Using fixed exchange rates and a comparable group structure (organic growth), net sales increased by 6 per cent. Regionally, organic growth was 9 per cent in the Americas, 6 per cent in EMEA and 4 per cent in Asia.
In the Americas, North America recorded 8 per cent organic growth, driven by strong growth in aerospace and general manufacturing. South America recorded strong double-digit organic growth, driven by favorable demand in the power and energy segment. In EMEA, Western Europe recorded 6 per cent organic growth, driven by solid demand in aerospace, general manufacturing and power and energy. The rest of EMEA recorded single-digit organic growth, with the Middle East growing high double-digits and Russia declining substantially due to sanctions and the actions taken to freeze all business operations in the country. In Asia, China recorded 3 per cent organic growth, fuelled by strong growth in the manufacturing industry, but hampered by COVID-19 related lockdowns. The rest of Asia recorded solid growth due to strong demand for manufacturing solutions.
Hexagon Manufacturing Intelligence recorded 6 per cent organic growth, driven by strong demand in the Americas with solid business momentum in aerospace and general manufacturing. The Asset Lifecycle Intelligence division (formerly known as the PPM division) recorded 5 per cent organic growth, fuelled by growth in design software, asset information management software and cyber security solutions, but hampered by COVID-19 related lockdowns in China.
For more information: www.hexagon.com