Hexagon Announces Third Quarter Financial Results
Hexagon AB has announced its financial results for the 3rd quarter 2022.
Operating net sales increased by 23 per cent to 1,320.2 MEUR (1,077.2). Net sales including the reduction of acquired deferred revenue amounted to 1,316.6 (1,077.2). Using fixed exchange rates and a comparable group structure (organic growth), net sales increased by 7 per cent. Adjusted operating earnings (EBIT1) increased by 24 per cent to 386.2 MEUR (310.6). Earnings before taxes, excluding adjustments, amounted to 377.3 MEUR (304.3)
“Organic sales in the third quarter accelerated to 7 per cent, which drove the operating margin to 29.3 per cent, a year-over-year increase of 0.5 percentage points. Looking across the divisions, the gradual slowdown in Geosystems was more than offset by the acceleration in all others, as well as in China. These results underscore our resilience in a market hampered by inflationary pressure and continued constraint of components, which adversely impacted organic growth by -3 per cent in the quarter. As expected, we see improvements in the supply of components and can reaffirm that the situation should be resolved close to year-end. Looking ahead, we are well prepared operationally for a global economic slowdown. The investments we have made in R&D and acquisitions continue to strengthen our margins and the resiliency of our business” stated Hexagon CEO Ola Rollén.
.Industrial Enterprise Solutions
Hexagon’s Industrial Enterprise Solutions IES) includes metrology systems as well as CAD (computer-aided design), CAM (computer-aided manufacturing) and CAE (computer-aided engineering) software. Hexagon’s Industrial Enterprise Solution 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.
Divisions reported in the Industrial Enterprise Solutions segment include Manufacturing Intelligence and Asset Lifecycle Intelligence.
IES operating net sales amounted to 678.3 MEUR (525.3). Using fixed exchange rates and a comparable group structure (organic growth), net sales increased by 9 per cent. Regionally, organic growth was 10 per cent in EMEA, 9 per cent in Asia and 8 per cent in the Americas.
In EMEA, Western Europe recorded 13 per cent organic growth, driven by broad-based strength across manufacturing industries and power and energy. The rest of EMEA recorded a single-digit organic decline, with the Middle East growing high double-digits and Russia declining substantially due to sanctions imposed by the European Union, the U.S. and other countries, and the actions taken to freeze all business operations in Russia.
In Asia, China recorded 8 per cent organic growth, fuelled by strong growth in general manufacturing and automotive – with a favorable impact from the electrification trend, and a recovery in power and energy after COVID-19 related lockdown issues. The rest of Asia recorded double-digit organic growth due to strong demand for solutions within power and energy and automotive.
In the Americas, North America recorded 6 per cent organic growth, driven by strong growth in aerospace and automotive. South America recorded double digit organic growth, driven by strong demand in the power and energy segment.
Manufacturing Intelligence recorded 8 per cent organic growth, driven by solid broad-based strength across geographies, industries and the software portfolio. The Asset Lifecycle Intelligence division recorded 12 per cent organic growth, fuelled by growth in both design and asset information management software.
Adjusted operating earnings (EBIT1) increased by 39 per cent to 198.1 MEUR (142.6), which corresponds to an adjusted operating
margin of 29.2 per cent (27.1). The adjusted operating margin (EBIT1) was positively impacted by product mix and currency movements.
For more information: www.hexagon.com