Having experienced favorable growth in China over recent quarters, Hexagon has seen a much weaker than expected development in June. The main reason for the slowdown has been the impact of increased geopolitical uncertainties on global trade, especially within the electronics business of the Hexagon Manufacturing Intelligence division in China. Demand in the other markets and divisions has remained broadly in line with what has been previously communicated.
Hexagon has taken proactive restructuring actions to ensure the company remains on track to meet its 2021 financial targets. Overall, Hexagon has taken a one-off charge of 44 MEUR during Q2 2019 to reduce its global workforce by approximately 700 employees, which is expected to result in annualized cost savings of 51 MEUR by the end of 2020.
News agency Reuters has reported: – CEO Ola Rollen told Reuters June accounts for typically 50 percent of Hexagon’s sales in its manufacturing intelligence unit and that the electronics sector had historically been a growth segment for Hexagon, representing 4%-5% of group sales. “In June several orders were canceled or postponed due to the uncertainty in the electronics – mobile phone handsets production – sector in China,” Rollen said in an email.
Hexagon will release its Interim Report for the second quarter 2019 on Friday 26 July.
For more information: www.hexagon.com