Hexcel Reports 2020 Fourth Quarter and Full Year Results

February 01 (2021

• Q4 2020 GAAP diluted EPS was ($0.23) with adjusted diluted EPS of ($0.18), compared to Q4 2019 GAAP diluted EPS and adjusted diluted EPS of $0.86.
• Q4 2020 Sales were $295.8 million, compared to $564.3 million in Q4 2019.
• FY 2020 GAAP diluted EPS was $0.38 vs FY 2019 at $3.57. FY 2020 adjusted diluted EPS was $0.25 vs FY 2019 at $3.54.
• FY 2020 Sales were $1,502 million, a decrease of 36% compared to FY 2019.
• Free Cash Flow of $214 million in FY 2020 with $104 million in the fourth quarter.
• Liquidity remains strong, at $875 million, with cash on hand of $103 million and an undrawn revolver balance of $772 million, at December 31, 2020.

Hexcel Corporation reported fourth quarter and full year 2020 results including fourth quarter net sales of $296 million and adjusted diluted EPS of ($0.18) per share.

Chairman, CEO and President Nick Stanage said, “Fourth quarter revenue of $296 million was in line with our expectations and consistent with our previous commentary that the third and fourth quarters of 2020, along with the first quarter of 2021, have been and are expected to be our most challenging quarters during this pandemic driven market downturn. Adjusted EPS for the quarter was negative 18 cents, reflecting stronger margin performance than the third quarter of 2020, although sales mix and reduced overhead absorption continue to be significant headwinds. Revenue for the full year was $1,502 million, down 36% in constant currency compared to 2019, with adjusted diluted EPS for the year of $0.25. Our cash management continued to be strong with Hexcel delivering $214 million of free cash flow for 2020, ensuring that our liquidity position remains robust.”

Sales in the fourth quarter of 2020 were $295.8 million compared to $564.3 million in the fourth quarter of 2019.
FY 2020 Results

Full year 2020 sales were $1,502.4 million, a decrease of 36.3% in constant currency compared to 2019.

Commercial Aerospace (55% of YTD sales)

• Commercial Aerospace sales of $822.3 million decreased 48.6% in constant currency compared to 2019.
• Sales to “Other Commercial Aerospace,” which include regional and business aircraft customers, decreased 32.5% in 2020.

Space & Defense (30% of YTD sales)

• Space & Defense sales of $448.5 million increased nominally in constant currency compared to 2019.

Industrial (15% of YTD sales)

• Total Industrial sales of $231.6 million decreased 26.5% in constant currency compared to 2019.
• Wind energy sales decreased 29.3% in constant currency during 2020 compared to 2019.
Consolidated Operations

Gross margin for the year was 16.0% compared to 27.2% for 2019. Total operating expenses in 2020 decreased $47.5 million or 22.1% compared to the prior year, reflecting cost reduction actions.

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