Hexagon Composites releases third quarter 2015 results

Hexagon Composites reports a decline in operating results for the third quarter, but notes North America and Europe continue to be strong markets for the company.

In the third quarter 2015, Hexagon Composites generated NOK 256.9 (349.3) million in operating income and made an operating loss before depreciation (EBITDA) of NOK -31.0 (75.1) million. Operating loss (EBIT) was NOK -43.8 (55.5) million and profit/loss before tax came to NOK -56.0 (59.7) million. 

Operating results declined compared with the third quarter of 2014, impacted by significantly lower sales volumes for Mobile Pipeline solutions and seasonally low sales volumes of Low-Pressure Cylinders. The heavy-duty truck market in North America remains robust and the transit bus markets in North America and Europe continue to display healthy growth. 

Key developments:

  • EBITDA loss for the quarter driven by low Mobile Pipeline and impact of seasonal Low-Pressure Cylinders sales
  • Awarded extended MAN Truck & Bus supplier nomination for global transit bus market
  • Released 16-inch all-carbon cylinder for transit bus and refuse truck market
  • Secured new long-term Low-Pressure Cylinders distribution agreement with Gasco in Saudi Arabia
  • Restructuring of European Light-Duty Vehicles business unit according to plan
  • Initiated a further program of cost saving initiatives to enhance weak short-term profitability
  • Continued positive overall impacts of USD currency developments compared to same period last year.