Hexagon Composites ASA: Results for first quarter 2015

Thu 05, 2015

In the first quarter 2015 Hexagon Composites generated NOK 401.6 (410.5) million in operating income and made an operating profit before depreciation (EBITDA) of NOK 52.9 (85.1) million. Operating profit (EBIT) was NOK 39.5 (67.1) million and profit before tax came to NOK 53.3 (57.5) million.

Operating results declined in the first quarter, versus first quarter 2014, impacted by lower sales volumes for Mobile Pipeline(TM) solutions and Low-Pressure Cylinders, together with higher costs related to the strengthening of engineering, innovation and administration resources. Results were also impacted by weak demand for light-duty vehicles. These effects were partly offset by strong sales volumes in the heavy-duty truck and transit bus markets in North America which reached record levels during the quarter, despite continued low oil prices. Lower depreciation and finance related costs had a positive impact of results for the quarter.

Key developments:

* Profitable quarter for the Group but relatively weaker margins

* Record delivery performance for Heavy-duty operations

* Somewhat soft Mobile Pipeline(TM )(Gas Distribution Products) sales due to order postponements

* Reasonable capacity utilization in the Low-Pressure Cylinders segment, but down from first quarter 2014

* Positive overall impacts of USD currency developments.

For more information:

Jon Erik Engeset, CEO, Hexagon Composites ASA
Telephone: +47 916 30 550 | [email protected]

David Bandele, CFO, Hexagon Composites ASA
Telephone: +47 920 91 483 | [email protected]

Solveig D Saether, Communication Manager, Hexagon Composites ASA
Telephone: +47 906 34 977 | [email protected]

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.