Hexagon AB has released its fourth quarter 2022 financial results:
Operating net sales increased by 15 per cent to 1,403.2 MEUR, reflecting organic growth of 8 per cent, a contribution from structure of 2 per cent and currency translation effects of 5 per cent.
All regions saw healthy organic growth development (EMEA: 11 per cent, Americas: 7 per cent and Asia: 7 per cent).
Geospatial Enterprise Solutions (GES) operating net sales amounted to 662.0 MEUR, reflecting organic growth of 5 per cent, led by a strong development in Autonomy & Positioning (15 per cent) and a stable trend in both Geosystems (4 per cent) and Safety, Infrastructure & Geospatial (3 per cent).
Industrial Enterprise Solutions (IES) operating net sales amounted to 741.2 MEUR reflecting organic growth of 12 per cent, with both Manufacturing Intelligence (13 per cent) and Asset Lifecycle Intelligence (8 per cent) contributing strongly.
Adjusted operating earnings (EBIT1) increased by 12 per cent to 418.0 MEUR with a corresponding margin of 29.8 per cent (30.7). The EBIT1 margin was positively impacted by healthy volume growth, favourable price-cost development, and new product introductions, reflected in a record gross margin of 66.2 per cent (65.0), but negatively impacted by net currency effects.
“In the fourth quarter, despite ongoing geopolitical challenges, organic growth accelerated to 8 per cent with good momentum across all regions. Highlights include 13 per cent organic growth in Manufacturing Intelligence, driven by strong demand in automotive and aerospace and continued strength in China; 8 per cent organic growth in Asset Lifecycle Intelligence, supported by strong demand for both design and enterprise asset management software; and 15 per cent organic growth in Autonomy & Positioning, fuelled by strong demand for aerospace and defence solutions, and growth in agriculture.” stated Paolo Guglielmini, President and CEO, Hexagon AB.
“While component supply constraints continued, the negative impact in the quarter was small, and we consider the situation largely resolved moving forward. Despite continued inflationary pressures, we delivered a record gross margin, reflecting active price management and a favourable product mix. However, we saw a short-term drag from currency transaction effects due to sharp currency moves during the quarter. Hexagon has good momentum going into 2023. We are well placed to deal with the global economy’s many challenges and will continue to invest in new technologies to capture the secular tailwinds supporting our future growth. I look forward to working with our team, our shareholders and our customers to continue building towards long-term success!” continued Guglielmini.
Industrial Enterprise Solutions
Industrial Enterprise Solutions (IES) operating net sales amounted to 741.2 MEUR (630.2). Using fixed exchange rates and a comparable group structure (organic growth), net sales increased by 12 per cent. Regionally, organic growth was 13 per cent in the Americas, 11 per cent in Asia and 10 per cent in EMEA. In the Americas, North America recorded 13 per cent organic growth, driven by continued strong growth in aerospace and automotive markets. South America recorded double-digit organic growth, driven by strong demand in power and energy. In Asia, China recorded 8 per cent organic growth, also fuelled by strong growth in aerospace and automotive. The rest of Asia recorded double-digit organic growth, driven by solid demand for solutions within power and energy and manufacturing. In EMEA, Western Europe recorded 13 per cent organic growth, driven by strong demand across manufacturing and power and energy. The rest of EMEA recorded single-digit organic growth, with Russia declining substantially reflecting the impact of imposed sanctions and the internal actions taken to freeze business operations in Russia. Excluding Russia, the region grew at double-digit rates.
The Manufacturing Intelligence division recorded 13 per cent organic growth, driven by strong growth across all geographies and industries, and the software portfolio. The Asset Lifecycle Intelligence division recorded 8 per cent organic growth, driven by strong growth in both design and enterprise asset management software.
Adjusted operating earnings (EBIT1) increased by 6 per cent to 213.4 MEUR (200.9), which corresponds to an adjusted operating margin of 28.8 per cent (31.9). The adjusted operating margin (EBIT1) was negatively impacted by currency movements, investments in innovation and a normalisation of sales and marketing costs.
For more information: www.hexagon.com