WASHINGTON (dpa-AFX) - Composite materials manufacturer Hexcel Corp. (HXL) reported Monday a profit for the first quarter that grew 10 percent from last year, reflecting improved margins and revenue growth amid double-digit commercial aerospace sales increase. Earnings per share for the quarter analysts' expectations by two cents, while and quarterly revenues missed their estimates by a whisker. The company also raised its earnings forecast for the full-year 2013, while maintaining annual revenue outlook.
'This was another good start to the year for Hexcel, as solid execution combined with continued strong aerospace sales delivered excellent results. For the quarter, our adjusted diluted EPS of $0.43 was 10.3% higher than last year, on a 3.9% increase in constant currency sales,' CEO David Berges said in a statement.
The Stamford, Connecticut-based company reported net income of $43.6 million or $0.43 per share for the first quarter, higher than $39.6 million or $0.39 per share in the prior-year quarter.
On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $0.41 per share for the first quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter increased 4.1 percent to $416.5 million from $400.1 million in the same quarter last year, but missed thirteen Wall Street analysts' consensus estimate of $417.97 million by a whisker. Net sales in constant currency grew only 3.9 percent.
'Our commercial aerospace and space and defense sales were again up over 10%, and helped offset the nearly 30% decline in industrial sales,' Berges added.
Segment-wise, commercial aerospace sales rose 11.0 percent or 10.8 percent in constant currency, to $269 million, boosted by new aircraft programs at Airbus and Boeing.
Industrial sales declined 29.2 percent or 29.5 percent in constant currency, to $52 million, while space & defense sales were up 13.1 percent or 12.9 percent in constant currency, to $96 million from last year.
Gross margin for the quarter improved 30 basis points to 26.9 percent from last year's 26.6 percent, reflecting sales volume and the continued improvement in operating performance. However, operating margins remained flat with last year at 15.1 percent.
The company it is increasing its guidance despite the expected continued weakness in industrial markets, due to the growth and operational performance in the rest of its business, combined with an improved tax outlook.
Looking ahead to fiscal 2013, the company raised its earnings guidance to a range of $1.73 to $1.83 per share from its prior estimate of $1.66 to $1.78 per share, while maintaining its revenue forecast between $1.64 billion and $1.74 billion.
Street is currently looking for full-year 2013 earnings of $1.77 per share, on annual revenue of $1.70 billion.
HXL closed Monday's regular trading session at $28.60, up $0.51 or 1.82% on a volume of 0.83 million shares.
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