Hexcel Reports 2021 Third Quarter Results

October 25 2021

Hexcel Corporation reported third quarter 2021 results, including net sales of $334 million and adjusted diluted EPS of $0.13 per share.

Chairman, CEO and President Nick Stanage said, ".. Sales of $334 million are another positive step-up sequentially and year over year with supply chain destocking now largely behind us. Adjusted EPS of 13 cents in the quarter reflects our on-going commitment to deliver productivity improvements through Operational Excellence, our relentless focus on controlling costs following the decisive cost alignment actions taken early in the pandemic and a positive sales mix. We are well positioned and ready to support increasing aircraft build rates in the months and years ahead.”

Consolidated Operations

Gross margin for the third quarter was 19.8% compared to 4.7% in the prior year period. As a percentage of sales, selling, general and administrative and R&T expenses for the third quarter of 2021 were 12.7% compared to 12.3% for the third quarter of 2020. Other operating expenses included restructuring costs.

Gross margin for nine months ended September 30, 2021 was 18.8% compared to 17.3% in the prior year period. Selling, general and administrative and R&T expenses for the first nine months of 2021 increased approximately 4% compared to the prior year period; however, were 18.0% lower than the comparable period in 2019. Other operating expenses for the nine months ended September 30, 2021 were $16.0 million and included expense primarily related to severance and restructuring. Other operating expenses for the nine months ended September 30, 2020 were $43.6 million and included expenses related to severance and the terminated merger with Woodward, Inc. Adjusted operating income for the first nine months of 2021 was $44.8 million, or 4.6% of sales, compared to $78.1 million, or 6.5% of sales in 2020. The impact of exchange rates on operating income as a percent of sales for the first nine months of 2021 was favorable by approximately forty basis points compared to 2020.

Year-to-Date 2021 Results

Sales of $964.4 million for the nine-month period ended September 30, 2021 decreased 20.1% (21.1% in constant currency) compared to the same period in 2020.

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