Hexagon Announce 3rd Quarter Financial Results
Summary:
- Net sales decreased by -2% to 939.9 MEUR (956.3). Using fixed exchange rates and a comparable group structure (organic growth), net sales was unchanged by 0 per cent
- Operating earnings increased by 6 per cent to 250.1 MEUR (235.8)
- Earnings before taxes, excluding non-recurring items, amounted to 242.2 MEUR (229.3)
- Net earnings, excluding non-recurring items, amounted to 198.6 MEUR (188.0)
- Operating cash flow increased to 191.2 MEUR (167.5)
- Board of Directors proposes a dividend of 0.62 EUR (0.59) per share for the fiscal year 2019
“We are pleased with the results, having delivered our best third-quarter earnings and profitability ever despite the significant currency headwind. We’ve been able to navigate a challenging environment with great resilience – adapting the cost structure by implementing short-term and long-term cost savings measures and at the same time expanding our gross margin through a richer product mix. We saw a robust sequential improvement in sales growth, supported by a broad-based recovery in China and a solid development in our geospatial segments. What we call the “two-speed world” has never been as evident as it is today, where our newer automation applications in construction, mining, public safety and agriculture are growing, while certain sectors such as traditional automotive, aerospace and oil and gas are still facing a tough demand situation. The increased focus on a low carbon economy is also apparent, where we see our applications within renewable energy, electric vehicles and rail gaining traction. Our strong cash flow and financial position enables us to continue investing in the future, increasing shareholder value and delivering revolutionary solutions that drive efficiency, productivity and quality for our customers.“ commented Ola Rollén, President and CEO, Hexagon AB.
Industrial Enterprise Solutions – Q3 2020
Industrial Enterprise Solutions (IES) includes metrology systems that incorporate the latest in sensor technology for fast and accurate measurements, as well as CAD (computer-aided design), CAM (computer-aided manufacturing) and CAE (computer-aided engineering) software. These solutions optimise 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.
Hexagon IES net sales amounted to 452.6 MEUR (482.5). Using fixed exchange rates and a comparable group structure (organic growth), net sales decreased by -5%. Regionally, organic growth was 4% in Asia, -6% in EMEA and -14% in Americas. In Asia, China recorded 13% organic growth, mainly driven by a recovery in the electronics segment and general manufacturing. Japan, South-Eastern Asia and India declined in the quarter. In EMEA, Western Europe recorded -9% organic growth, driven by weakness in the automotive and aerospace segments and high year-on-year comparisons in the power and energy segment. Russia and the Middle East recorded double digit growth, but Eastern Europe and Africa declined. In Americas, North America recorded -16% organic growth, hampered by a weak development in all segments. South America recorded double-digit organic growth.
Regarding the divisions within IES, Manufacturing Intelligence recorded -4% organic growth, largely driven by weak demand in the automotive and aerospace segments. China, however, recorded solid organic growth, supported by a recovery in electronics and general manufacturing. The software portfolios continued to show resilience and remained stable. The PPM division recorded -7% organic growth, on the back of high year-on-year comparisons and a challenging oil and gas market. However, the positive development in the AEC (architect, engineering and construction) design software portfolio continued.
Operating earnings decreased by -7% to 114.8 MEUR (124.0), operating margins was positively impacted by cost savings measures but adversely impacted by currency movements and lower volumes. Employees within the division totalled 11,112 compared to 11,268 during the same period in 2019.
For the 9 month 2020 period net sales at IES have declined -8% to 1327.7 MEUR (1,429.5).
For more information: www.hexagon.com
