Hexagon continues to build on its reality capture, measurement and positioning foundation, to deliver more software-centric, business critical and high value solutions for customers. Their demand for more productive, sustainable, high-quality products and operations is accelerating, positioning Hexagon ideally for continued profitable growth.
To leverage these opportunities and build a strong financial profile for shareholders, Hexagon states, in its recent press release, that its constantly look for efficiencies and investment opportunities to strengthen skills and focus on growth areas.
In the release Hexagon announced it will take a one-off charge of approximately 200 MEUR ($222M) in Q3 2023, with a similar cash impact. The program will be implemented over the next 6 quarters and is expected to generate annualised cost savings of 160-170 MEUR, reaching the full run-rate impact in early 2025.
The programme is focused on a number of areas, including:
– Reduction of Hexagon’s office and facilities footprint by approximately 25%
– Extraction of cross-divisional efficiencies to reduce overall overhead costs
– Optimisation of development, manufacturing and digital processes through automation
– Rationalisation of non-core business areas and activities
The annualised savings generated will be used to underpin Hexagon’s operating margin target while countering inflationary pressures and allowing continued investments in organic growth.
“Hexagon has a significant market opportunity, driven by long-term and cross-industry megatrends. Over the last few quarters we have assessed our operations through the lens of this potential and this efficiency program will provide a solid foundation for delivery,” said Paolo Guglielmini, President and CEO, Hexagon.
For more information: www.hexagon.com