We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Hexcel Corp | TG:HXL | Tradegate | Ordinary Share |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 60.00 | 59.50 | 60.00 | 0.00 | 06:32:02 |
Regulatory News:
Third Quarter 2011 Highlights
•
Sales of $351.8 million were 19.5% higher than last year (17.3% in constant currency)led again by strong Commercial Aerospace sales (up 31.2% in constant currency).
•
Net Income Was $32.2 Million, $0.32 Diluted EPS ($0.34 Adjusted Diluted EPS, See TableC), versus $15.6 Million, $0.16 Diluted EPS ($0.20 Adjusted Diluted EPS Last Year).
•
2011 adjusted diluted EPS guidance increased to a range of $1.18 to $1.23 (from$1.05 - $1.12) and sales increased to a range of $1,375 million to $1,400 million.
Quarter EndedSeptember 30,
Nine Months EndedSeptember 30,
(In millions, except per share data) 2011 2010 % Change 2011 2010 % Change Net Sales $ 351.8 $ 294.5 19.5% $ 1,037.1 $ 862.6 20.2% Net sales change in constant currency 17.3% 18.1% Operating Income 46.0 34.5 33.3% 142.6 98.8 44.3% Net Income 32.2 15.6 106% 96.0 54.5 76% Diluted net income per common share $ 0.32 $ 0.16 100% $ 0.95 $ 0.55 73%Non-GAAP Measures for y-o-y comparisons:
Adjusted Operating Income (table C) $ 48.7 $ 34.5 41.1% $ 139.6 $ 102.3 36.5% As a % of sales 13.8% 11.7% 13.5% 11.9% Adjusted Net Income (table C) 34.0 19.9 71% 91.2 57.5 59% Adjusted diluted net income per share $ 0.34 $ 0.20 70% $ 0.91 $ 0.58 57%Hexcel Corporation (NYSE:HXL)(Paris:HXL), today reported results for the third quarter of 2011. Net sales during the quarter were $351.8 million, 19.5% higher than the $294.5 million reported for the third quarter of 2010. Operating income for the period was $46.0 million, compared to $34.5 million last year. Net income for the third quarter of 2011 was $32.2 million, or $0.32 diluted earnings per share, compared to $15.6 million or $0.16 diluted earnings per share in 2010. Excluding the items in Table C, adjusted diluted net income for the third quarter of 2011 was $0.34 per share compared to $0.20 per share in the third quarter of 2010.
Chief Executive Officer Comments
Mr. Berges commented, “This was another strong quarter that exceeded our expectations. For the quarter, we had a 31.6% increase in commercial aerospace sales, driven by increased airplane build rates, the ramp-up of new programs and restocking by our customers. Solid gross margin performance coupled with our cost control efforts resulted in a 13.8% adjusted operating margin. Add the strong operating performance to the benefits of a lower tax rate this quarter and we achieved a 70% increase in adjusted diluted EPS compared to last year. Based on these favorable year-to-date results and our current outlook for the remainder of the year, we are increasing 2011 adjusted diluted EPS guidance to $1.18 - $1.23 (from $1.05 - $1.12). We are also raising our sales guidance for the year to $1,375 million - $1,400 million (from $1,325 million - $1,375 million).”
Looking ahead, Mr. Berges said, “With year to date commercial aerospace sales up 29%, our outlook for this market has strengthened significantly in recent quarters. The A380, B787 and B747-8 are each now ramping up simultaneously and legacy aircraft build rate increases have been announced by Boeing and Airbus. In addition, two re-engined narrow-body programs (A320neo and B737 MAX) will increase Hexcel content on the highest volume aircraft sooner than an all-new aircraft would have. As a result, we are working to pull forward our capital investments to support higher demand. We anticipate providing further 2012 guidance in December, after we have concluded our planning cycle, but we expect to exceed the $200 million top end of our prior capital expenditure range for 2012.”
Markets
Commercial Aerospace
Space & Defense
Industrial
Operations
Tax
Cash and other
Hexcel will host a conference call at 10:00 A.M. ET, tomorrow, October 25, 2011 to discuss the third quarter results and respond to analyst questions. The telephone number for the conference call is (719) 325-2452 and the confirmation code is 4985717. The call will be simultaneously hosted on Hexcel’s web site at www.hexcel.com/investors/index.html. Replays of the call will be available on the web site for approximately three days.
Hexcel Corporation is a leading advanced composites company. It develops, manufactures and markets lightweight, high-performance structural materials, including carbon fibers, reinforcements, prepregs, honeycomb, matrix systems, adhesives and composite structures, used in commercial aerospace, space and defense and industrial applications such as wind turbine blades.
Disclaimer on Forward Looking Statements
This press release contains statements that are forward looking, including statements relating to anticipated trends in constant currency for the market segments we serve (including changes in commercial aerospace revenues, the estimates and expectations based on aircraft production rates made publicly available by Airbus and Boeing, the revenues we may generate from an aircraft model or program, the impact of delays in new aircraft programs, the outlook for space & defense revenues and the trend in wind energy, recreation and other industrial applications); our ability to maintain and improve margins in light of the changes in product mix, efficiency improvements, continued cost reduction efforts and the current economic environment; outcome of legal matters; the magnitude and timing of capital expenditures in relation to market demand; and the impact of the above factors on our expectations of 2011 financial results. Actual results may differ materially from the results anticipated in the forward looking statements due to a variety of factors, including but not limited to changing market conditions, increased raw material costs, competition, product mix, inability to achieve planned manufacturing improvements and cost reductions, supply chain disruptions, conditions in the financial markets and changes in currency exchange rates, interest rates, governmental and environmental regulations and tax codes. Additional risk factors are described in our filings with the SEC. We do not undertake an obligation to update our forward-looking statements to reflect future events.
Hexcel Corporation and Subsidiaries Condensed Consolidated Statements of Operations UnauditedQuarter EndedSeptember 30,
Nine Months EndedSeptember 30,
(In millions, except per share data) 2011 2010 2011 2010 Net sales $ 351.8 $ 294.5 $ 1,037.1 $ 862.6 Cost of sales 265.3 224.0 780.6 647.6 Gross margin 86.5 70.5 256.5 215.0 % Gross margin 24.6 % 23.9 % 24.7 % 24.9 % Selling, general and administrative expenses 29.9 28.7 92.5 89.7 Research and technology expenses 7.9 7.3 24.4 23.0 Other operating (income) expense (a) 2.7 — (3.0 ) 3.5 Operating income 46.0 34.5 142.6 98.8 Interest expense, net 2.2 5.3 9.3 19.0 Non-operating expense (b) — 6.8 4.9 6.8Income before income taxes and equity in earnings from
affiliated companies 43.8 22.4 128.4 73.0 Provision for income taxes (c) 12.0 6.8 33.5 18.9 Income before equity in earnings from affiliated companies 31.8 15.6 94.9 54.1 Equity in earnings from affiliated companies 0.4 — 1.1 0.4 Net income $ 32.2 $ 15.6 $ 96.0 $ 54.5 Basic net income per common share: $ 0.33 $ 0.16 $ 0.97 $ 0.56Diluted net income per common share:
$ 0.32 $ 0.16 $ 0.95 $ 0.55 Weighted-average common shares: Basic 99.0 97.7 98.6 97.6 Diluted 101.1 100.0 100.7 99.9a)
Other operating expense for the third quarter of 2011 and the nine months ended September 30, 2010 includes an increase inenvironmental reserves primarily for remediation of a manufacturing facility sold in 1986 for $2.7 million and $3.5 million, respectively.Other operating income for the nine months ended September 30, 2011 also includes a $5.7 million benefit from the curtailment of apension plan.
b)
Non-operating expense for the nine months ended September 30, 2011 is the accelerated amortization of deferred financing costs andexpensing of the call premium from redeeming $150 million of 6.75% senior subordinated notes. The $6.8 million non-operatingexpense in the third quarter 2010 reflects the accelerated amortization of deferred financing costs as a result of the refinancing of ourSenior Secured Credit Facility.
c)
Provision for income taxes for the nine months ended September 30, 2011 includes a release of $5.5 million of reserves in the secondquarter primarily for uncertain tax positions as a result of an audit settlement. Provision for income taxes for the nine months endedSeptember 30, 2010 includes $3.5 million of New Clean Energy Manufacturing Tax Credits awarded in January 2010 for qualifying capitalinvestments made in our U.S. wind energy facility in 2009.
Hexcel Corporation and Subsidiaries Condensed Consolidated Balance Sheets Unaudited(In millions)
September 30,2011
December 31,2010
Assets Current assets: Cash and cash equivalents $ 48.4$ 117.2 Accounts receivable, net 208.5 173.9 Inventories, net 213.3 169.9 Prepaid expenses and other current assets 59.8 36.7 Total current assets 530.0 497.7 Property, plant and equipment 1,170.3 1,063.9 Less accumulated depreciation (506.3 ) (465.6 ) Property, plant and equipment, net 664.0 598.3 Goodwill and other intangible assets, net 57.7 56.2 Investments in affiliated companies 21.9 19.9 Deferred tax assets 29.9 63.6 Other assets 17.6 22.4 Total assets $ 1,321.1 $ 1,258.1 Liabilities and Stockholders' Equity Current liabilities: Notes payable and current maturities of capital lease obligations $ 11.9 $ 27.6 Accounts payable 113.9 83.0 Accrued liabilities 94.9 95.3 Total current liabilities 220.7 205.9 Long-term notes payable and capital lease obligations 236.9 304.6 Other non-current liabilities 74.2 88.2 Total liabilities 531.8 598.7 Stockholders' equity:
Common stock, $0.01 par value, 200.0 shares authorized, 100.4 shares issued at September 30, 2011 and 99.5 shares issued at December 31, 2010
1.0 1.0 Additional paid-in capital 579.9 552.3 Retained earnings 244.4 148.4 Accumulated other comprehensive loss (9.2 ) (15.1 ) 816.1 686.6Less – Treasury stock, at cost, 2.0 shares and 2.2 shares at September 30, 2011 and December 31, 2010, respectively
(26.8 ) (27.2 ) Total stockholders' equity 789.3 659.4 Total liabilities and stockholders' equity $ 1,321.1 $ 1,258.1 Hexcel Corporation and Subsidiaries Condensed Consolidated Statements of Cash Flows UnauditedYear to Date EndedSeptember 30,
(In millions) 2011 2010 Cash flows from operating activities Net income $ 96.0 $ 54.5 Reconciliation to net cash provided by operating activities: Depreciation and amortization 41.6 39.3Amortization of debt discount and deferred financing costs and call premium expense
6.4 9.8 Deferred income taxes 27.4 8.9 Equity in earnings from affiliated companies (1.1 ) (0.4 ) Share-based compensation 11.3 10.5 Pension curtailment gain (5.7 ) — Excess tax benefits on share-based compensation (3.7 ) (0.8 ) Changes in assets and liabilities: Increase in accounts receivable (31.8 ) (28.7 ) Increase in inventories (41.8 ) (42.5 ) Increase in prepaid expenses and other current assets (2.0 ) (0.3 ) Increase in accounts payable/accrued liabilities 18.4 27.2 Other – net (4.0 ) (8.7 ) Net cash provided by operating activities (a) 111.0 68.8 Cash flows from investing activities Capital expenditures (b) (99.5 ) (31.2 ) Settlement of foreign currency hedge (5.2 ) — Net cash used for investing activities (104.7 ) (31.2 ) Cash flows from financing activities Borrowings from senior secured credit facility 135.0 — Repayment of 6.75% senior subordinated notes (150.0 ) — Repayment of senior secured credit facility (61.0 ) — Repayment of senior secured credit facility – term loan (3.8 ) (1.3 ) Call premium payment for 6.75% senior subordinated notes (3.4 ) — (Repayments) borrowings from credit line (3.3 ) 1.9 Repayments of capital lease obligations and other debt, net (0.3 ) (0.2 )Borrowings from senior secured credit facility – new and former term B loan
— 100.0 Repayment of senior secured credit facility – former term loans — (164.1 ) Issuance costs related to new Senior Secured Credit Facility — (3.7 ) Activity under stock plans 9.1 1.2 Net cash (used in) financing activities (77.7 ) (66.2 ) Effect of exchange rate changes on cash and cash equivalents 2.6 (3.0 ) Net decrease in cash and cash equivalents (68.8 ) (31.6 ) Cash and cash equivalents at beginning of period 117.2 110.1 Cash and cash equivalents at end of period $ 48.4 $ 78.5 Supplemental Data: Free cash flow (a)+(b) $ 11.5 $ 37.6 Accrual basis additions to property, plant and equipment $ 104.3 $ 24.1 Hexcel Corporation and Subsidiaries Net Sales to Third-Party Customers by Market Segment Quarters Ended September 30, 2011 and 2010 (Unaudited) Table A (In millions) As Reported Constant Currency (a) Market Segment 2011 2010B/(W)%
FXEffect (b)
2010B/(W)%
Commercial Aerospace $ 207.4 $ 157.6 31.6 $ 0.5 $ 158.1 31.2 Space & Defense 80.9 74.4 8.7 0.9 75.3 7.4 Industrial 63.5 62.5 1.6 4.0 66.5 (4.5 ) Consolidated Total $ 351.8 $ 294.5 19.5 $ 5.4 $ 299.9 17.3 Consolidated % of Net Sales %%
% Commercial Aerospace 59.0 53.5 52.7 Space & Defense 23.0 25.3 25.1 Industrial 18.0 21.2 22.2 Consolidated Total 100.0 100.0 100.0 Nine Months Ended September 30, 2011 and 2010 (Unaudited) Table A (In millions) As Reported Constant Currency (a) Market Segment 2011 2010B/(W)%
FXEffect (b)
2010B/(W)%
Commercial Aerospace $ 612.8 $ 470.6 30.2 $ 3.5 $ 474.1 29.3 Space & Defense 242.3 226.3 7.1 2.9 229.2 5.7 Industrial 182.0 165.7 9.8 9.5 175.2 3.9 Consolidated Total $ 1,037.1 $ 862.6 20.2 $ 15.9 $ 878.5 18.1 Consolidated % of Net Sales % % % Commercial Aerospace 59.1 54.6 54.0 Space & Defense 23.4 26.2 26.1 Industrial 17.5 19.2 19.9 Consolidated Total 100.0 100.0 100.0(a)
To assist in the analysis of our net sales trend, total net sales and sales by market for the quarter and nine months ended September30, 2010 have been estimated using the same U.S. dollar, British pound and Euro exchange rates as applied for the respective periodin 2011 and are referred to as “constant currency” sales.
(b)
FX effect is the estimated impact on “as reported” net sales due to changes in foreign currency exchange rates.
Hexcel Corporation and Subsidiaries
Segment Information (Unaudited) Table B (In millions)CompositeMaterials(b)
EngineeredProducts
Corporate& Other(a)(b)
Total
Third Quarter 2011 Net sales to external customers$
262.4 $ 89.4 $ — $ 351.8 Intersegment sales 14.6 0.3 (14.9 ) — Total sales 277.0 89.7 (14.9 ) 351.8 Operating income (loss) (b) 45.1 16.2 (15.3 ) 46.0 % Operating margin 16.3%
18.1 % 13.1 % Other operating expense — — 2.7 2.7 Depreciation and amortization 12.5 1.1 0.1 13.7 Stock-based compensation expense 0.9 0.5 1.1 2.5 Accrual based additions to capital expenditures 46.5 2.2 0.5 49.2 Third Quarter 2010 Net sales to external customers $ 224.6 $ 69.9 $ — $ 294.5 Intersegment sales 9.8 — (9.8 ) — Total sales 234.4 69.9 (9.8 ) 294.5 Operating income (loss) 34.3 11.9 (11.7 ) 34.5 % Operating margin 14.6
%
17.0 % 11.7 % Depreciation and amortization 12.6 1.0 0.1 13.7 Stock-based compensation expense 0.8 0.1 1.3 2.2 Accrual based additions to capital expenditures 9.6 0.8 — 10.4First Nine Months 2011
Net sales to external customers
$
795.5
$
241.6
$
—
$
1,037.1
Intersegment sales
42.4
0.8
(43.2
)
—
Total sales
837.9
242.4
(43.2
)
1.037.1
Operating income (loss) (b)
143.4
40.6
(41.4
)
142.6
% Operating margin
17.1
%
16.7
%
13.7
%
Other operating (income) expense
(5.7
)
—
2.7
(3.0
)
Depreciation and amortization
38.2
3.2
0.2
41.6
Stock-based compensation expense
3.4
0.9
7.0
11.3
Accrual based additions to capital expenditures
99.2
4.6
0.5
104.3
First Nine Months 2010
Net sales to external customers
$
663.9
$
198.7
$
—
$
862.6
Intersegment sales
30.2
0.3
(30.5
)
—
Total sales
694.1
199.0
(30.5
)
862.6
Operating income (loss) (b)
107.6
33.9
(42.7
)
98.8
% Operating margin
15.5
%
17.0
%
11.5
%
Other operating expense
—
—
3.5
3.5
Depreciation and amortization
36.2
2.9
0.2
39.3
Stock-based compensation expense
3.5
0.6
6.4
10.5
Accrual based additions to capital expenditures
22.6
1.4
0.1
24.1
(a) We do not allocate corporate expenses to the operating segments. (b)The third quarter of 2011 and the first nine months of 2010 Corporate and Other include $2.7 million and $3.5 million, respectively, ofcharges to the environmental reserves primarily for remediation at a manufacturing facility sold in 1986. The first nine months 2011Composite Materials operating income includes a $5.7 million benefit from the curtailment of a pension plan.
Hexcel Corporation and Subsidiaries Reconciliation of GAAP and Non-GAAP Operating Income and Net Income Table C UnauditedQuarter EndedSeptember 30,
Nine Months EndedSeptember 30,
(In millions) 2011 2010 2011 2010 GAAP operating income $ 46.0 34.5 $ 142.6 $ 98.8- Other operating (income) expense (a)
2.7 — (3.0 ) 3.5 Adjusted Operating Income $ 48.7 34.5 $ 139.6 $ 102.3 % of Net Sales 13.8 % 11.7 % 13.5 % 11.9 %- Stock Compensation Expense
$ 2.5 2.2 $ 11.3 $ 10.5- Depreciation and Amortization
13.7 13.7 41.6 39.3 Adjusted EBITDA $ 64.9 50.4 $ 192.5 $ 152.1 Unaudited Quarter Ended September 30, 2011 2010 (In millions, except per diluted share data) As Reported EPS As Reported EPS GAAP net income $ 32.2 $ 0.32 $ 15.6 $ 0.16 - Other operating expense (net of tax) (a) 1.8 0.02 — — - Non-operating expense (net of tax) (b) — — 4.3 0.04 Adjusted net income $ 34.0 $ 0.34 $ 19.9 $ 0.20 Unaudited Nine Months Ended September 30, 2011 2010 (In millions, except per diluted share data) As Reported EPS As Reported EPS GAAP net income $ 96.0 $ 0.95 $ 54.5 $ 0.55 - Other operating (income) expense (net of tax) (a) (2.3) (0.02) 2.2 0.02 - Non-operating expense (net of tax) (b) 3.0 0.03 4.3 0.04 - Benefit from tax audit settlement (c) (5.5) (0.05) — — - Tax credits for capital investments in wind energy facility (d) — — (3.5) (0.04) Adjusted net income $ 91.2 $ 0.91 $ 57.5 $ 0.58 (a)Other operating expense for the third quarter of 2011 and the first nine months of 2010 include $2.7 million and $3.5 million,respectively, of charges to the environmental reserves primarily for remediation at a manufacturing facility sold in 1986. Otheroperating income for the first nine months of 2011 includes a $5.7 million benefit from the curtailment of a pension plan.
(b)Non-operating expense for the nine months ended September 30, 2011 is the accelerated amortization of deferred financing costs andexpensing of the call premium from redeeming $150 million of 6.75% senior subordinated notes. Non-operating expense for the thirdquarter and nine months ended September 30, 2010 is the acceleration of deferred financing costs due to the refinancing of the SeniorSecured Credit Facility.
(c)Tax benefit from the release of $5.5 million of reserves primarily for uncertain tax positions as a result of an audit settlement.
(d)New Clean Energy Manufacturing Tax Credits included in the nine month period of 2010 were for qualifying capital investments made inour U.S. wind energy facility in 2009.
Management believes that adjusted operating income, adjusted EBITDA, adjusted net income and free cash flow (defined as cash provided byoperating activities less cash payments for capital expenditures), which are non-GAAP measurements, are meaningful to investors because theyprovide a view of Hexcel with respect to ongoing operating results excluding special items. Special items represent significant charges or creditsthat are important to an understanding of Hexcel’s overall operating results in the periods presented. In addition, management believes thattotal debt, net of cash, which is also a non-GAAP measure, is an important measure of Hexcel’s liquidity. Such non-GAAP measurements are notrecognized in accordance with generally accepted accounting principles and should not be viewed as an alternative to GAAP measures ofperformance.
Hexcel Corporation and Subsidiaries Schedule of Total Debt, Net of Cash Table D UnauditedSeptember 30,2011
June 30,2011
December 31,2010
(In millions) Notes payable and current maturities of capital lease obligations $ 11.9 $ 9.3 $ 27.6 Long-term notes payable and capital lease obligations 236.9 242.1 304.6 Total Debt 248.8 251.4 332.2 Less: Cash and cash equivalents (48.4) (55.9) (117.2) Total debt, net of cash $ 200.4 $ 195.5 $ 215.0
1 Year Hexcel Chart |
1 Month Hexcel Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions