Hexagon Reports Strong Third Quarter Results for Low-Pressure Cylinder Sales

Hexagon had a 52% increase in revenues in its Low-Pressure cylinders segment during the third quarter.

In the third quarter 2016, Hexagon Composites generated NOK 266.2 (256.9) million in operating income and made an operating profit before depreciation (EBITDA) of NOK 4.6 (-31.0) million. Operating profit (EBIT) was NOK -12.4 (-43.8) million and profit/loss before tax came to NOK -18.4 (-56.0) million.

Operating results in the third quarter were impacted positively by a 52% growth in revenues within the Low-Pressure segment versus the same period last year. However, weak sales volumes of Mobile Pipeline hamper overall profitability for the group. The realized cost initiatives executed towards the end of 2015 have a positive year-over-year impact on results.

Key developments

  • Strong Q3 performance in Low-Pressure.
  • Increase in US Heavy-Duty Truck cylinder sales.
  • Weak Mobile Pipeline sales.
  • Profitable growth in the Light-Duty Vehicle business.
  • Selected by Daimler AG to supply hydrogen cylinders for the new Mercedes-Benz GLC F-CELL.

After balance sheet date

  • The merger of the roup's Heavy- and Medium-Duty CNG Automotive businesses with Agility Fuel Systems to create Agility Fuel Solutions (50% owned) was closed on October 3, 2016.
  • xperion Energy & Environment in Germany, one of the leading Type 4 cylinder manufacturers, was acquired on October 4