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Hexcel net income plummets as dramatic volume decline continues

October 20/2020

MOSCOW (MRC) -- Hexcel has reported net income down 87.9% year-on-year (YOY), to USD9.7 million, on net sales down 49.9%, to USD286.9 million. Adjusted earnings amounted to a 29 cents/share net loss, short of analysts consensus estimate of an 8 cents/share gain, as reported by Refinitiv (New York, New York), said Chemweek.

A dramatic decline in demand from the commercial aerospace sector has significantly impacted the companys results. As the year has progressed, the dramatic downturn especially in the commercial aerospace market has become clearer and, as a result, we believe these channel adjustments will take another two to three quarters to work through the system, says Hexcel chairman and CEO Nick Stanage.

Commercial aerospace segment sales were down 66.6% YOY, to USD128.8 million. Space and defense segment sales fell 0.9% YOY, to USD108.8 million. Industrial segment sales fell 25.8% YOY, to USD49.3 million.

As MRC informed earlier, Hexcel and Arkema have signed a strategic alliance to develop thermoplastic composite solutions for the aerospace sector combining the expertise of Hexcel in carbon fiber and that of Arkema in PEKK. The partnership announced today aims to develop carbon fiber-reinforced thermoplastic tapes to produce lightweight parts for future generations of aircraft. In addition to lightweighting, these new composites will provide lower cost and faster production speeds for customers in the aerospace and the space and defense sectors.

We remind that Russia's output of chemical products rose in August 2020 by 5% year on year. At the same time, production of basic chemicals increased year on year by 5.3% in the first eight months of 2020, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-July output. August production of benzene fell to 102,000 tonnes from 95,300 tonnes a month earlier due to scheduled shutdowns for maintenance at several producers. Overall output of this product reached 918,300 tonnes over the stated period, down by 0.9% year on year.

At the same time, August production of primary polymers rose to 888,000 tonnes against 838,000 tonnes in July due to increased capacity utilisation at ZapSibNeftekhim, Stavrolen and Gazprom neftekhim Salavat. Overall output of polymers in primary form totalled 6,630,000 tonnes over the stated period, up by 15.2%  year on year.

Hexcel Corporation is a leading advanced composites company. It develops, manufactures and markets lightweight, high-performance structural materials including carbon fibers, specialty reinforcements, prepregs and other fiber-reinforced matrix materials, honeycomb, adhesives, engineered core and composite structures for use in commercial aerospace, space and defense and industrial applications.
Author:Anna Larionova
Tags:petroleum products, crude oil, neftegaz, petrochemistry, Arkema.
Category:General News
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