Hexcel Reports Q1 Earnings; Eyes Commercial Aerospace Sales
On Monday, April 21, 2014, Hexcel (NYSE: HXL) announced and released its first quarter financial results. Shares of the company are fairly neutral in after-hours trading.
The company announced that sales during the quarter were 461.7 million, representing a 10.9 percent increase that what sales were during the first quarter of 2013.
Chief Executive Officer Nick Lee Stanage commented, “This was a great start to the year for Hexcel, as solid execution combined with continued strong Commercial Aerospace sales enabled us to deliver excellent results. For the quarter, our diluted EPS of $0.50 was 16% higher than last year, on a 9.7% increase in constant currency sales. Our Commercial Aerospace sales were again up over 10% and we were also helped this quarter by a nearly 19% increase in Industrial sales as compared to the weak first quarter of 2013. Our Space & Defense sales were about 1% lower than last year.”
The company also had its operating income jump, jumping from $63.0 million the same time period a year ago to $74.6 million.
Net income also increased to $50.1 million from $43.6 million.
Stanage continued, “We remain encouraged by the increasing backlog in large commercial aircraft which suggests we are well positioned for the future as we expect to benefit from both increasing composite-intensive aircraft and production rates. We continue to focus on delivering earnings leverage and cash on the anticipated higher sales in the coming years, as well as investing in new technology and processes for new programs.”
In addition, Hexcel reaffirmed its 2014 outlook and guidance. The company expects sales of $1.8 billion to $1.880 billion, adjusted diluted earnings per share of $2.00 to $2.12, and free cash flow of $25 million to $75 million for the year with accrued capital expenditures of $225 million to $250 million.
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