“This was another record quarter for Hexcel, with solid execution leading to strong results. For the quarter, our diluted EPS of US$ 0.70 was 11% above last year’s US$ 0.63, on a constant currency sales increase of 10%,” commented Chairman, CEO and President Nick Stanage.

“We delivered a solid gross margin of 28.7% in the first half of 2016, while executing the start-up of several new production lines for additional capacity to support our forecasted growth.”

Sales

Commercial Aerospace sales, which account for 70% of total sales, drove the quarter’s record results, the company reports. Sales, led by the A350 XWB, were 14.3% higher in constant currency than the second quarter of 2015.

Space & Defense sales were 7.6% lower in constant currency than last year, while Industrial sales were 14.4% higher in constant currency than last year, reflecting the acquisition of Formax.

Outlook

“With the strong first half of the year now behind us, we reaffirm our 2016 guidance, and we have increased the mid-point of our earnings guidance,” stated Nick Stanage. The company’s range for adjusted diluted EPS is now US$ 2.48 to US$ 2.56 (previously was US$ 2.44 to US$ 2.56) on sales of US$ 1.99 to US$ 2.05 billion (previously was US$ 1.97 to US$ 2.07 billion).

“The company’s focus remains driving manufacturing throughput, capacity expansion and superior execution to prepare for the substantial production ramp up of new programs, led by Commercial Aerospace. We continue to be well aligned with our customers’ needs and are fully prepared to meet the increasing demands for innovative composite products and solutions to support their growth,” Stanage concluded.

Hexcel Corporation

Hexcel Corporation is a leading advanced composites company. It develops, manufactures and markets lightweight, high-performance structural materials, including carbon fibres, reinforcements, prepregs, honeycomb, matrix systems, adhesives and composite structures, used in commercial aerospace, space and defense and industrial applications such as wind turbine blades.

www.hexcel.com