Hexcel Reports 2021 First Quarter Results
Hexcel Corporation (NYSE: HXL):
Summary of Results from Operations |
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Quarters Ended |
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March 31, |
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(In millions, except per share data) |
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2021 |
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2020 |
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% Change |
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Net Sales |
$ |
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310.3 |
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$ |
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541.0 |
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(42.6 |
)% |
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Net sales change in constant currency |
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(43.5 |
)% |
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Operating (loss) income |
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(10.2 |
) |
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65.7 |
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(115.5 |
)% |
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Net (loss) income |
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(14.0 |
) |
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42.4 |
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(133.0 |
)% |
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Diluted net (loss) income per common share |
$ |
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(0.17 |
) |
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$ |
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0.50 |
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(133.4 |
)% |
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Non-GAAP measures for year-over-year comparison (Table C) |
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Adjusted Operating income |
$ |
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1.9 |
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$ |
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80.4 |
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(97.6 |
)% |
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As a % of sales |
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0.6 |
% |
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14.9 |
% |
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Adjusted Net (loss) income (Table C) |
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(8.4 |
) |
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53.8 |
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(115.6 |
)% |
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Adjusted diluted net income per share |
$ |
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(0.10 |
) |
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$ |
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0.64 |
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(115.6 |
)% |
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Hexcel Corporation (NYSE: HXL) today reported first quarter 2021 results including net sales of
Chairman, CEO and President Nick Stanage said, “First quarter results were in line with our expectations and reflect a strong focus on cost controls in light of the pandemic-related economic headwinds we face, including the impact of continued supply chain destocking. This first quarter, along with Q3 and Q4 2020, are projected to be the low point of the current pandemic-driven demand cycle, and we now expect destocking to wind down as we move through the second quarter and to be mostly behind us as we enter the second half of the year. At that point, Commercial Aerospace sales should start to grow steadily, more closely reflecting OEM aircraft build rates. We expect a gradual step up in sales each quarter as 2021 progresses, followed by an extended period of growth starting in 2022.”
Mr. Stanage continued, “We believe a steady yet slow recovery is developing as the world emerges from the pandemic and regains its confidence in traveling once again. As it does, Hexcel is well positioned to support the sizable OEM aircraft backlog with our innovative, lightweight advanced composites technology that drives fuel efficiency, reduces emissions, and improves performance. We also previously communicated our target to reduce overhead costs on an annual basis by
Markets
Sales in the first quarter of 2021 were
Commercial Aerospace
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Commercial Aerospace sales of
$147.6 million decreased59.3% (59.7% in constant currency) for the quarter compared to the first quarter of 2020. Sales were down significantly across all major platforms reflecting pandemic-induced build rate reductions by the aircraft OEMs and continued supply chain destocking. Boeing 737 MAX sales continue at a low level. -
Sales to “Other Commercial Aerospace,” which include regional and business aircraft, decreased
48.0% in the first quarter of 2021 as compared to 2020, as the global pandemic negatively impacted demand across this market sector, particularly business jets.
Space & Defense
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Space & Defense sales of
$111.7 million were unchanged compared to the first quarter of 2020 (decrease of1.0% in constant currency). Strength in rotorcraft, including the CH-53K, as well as the F-35 joint strike fighter was offset by the collective impact of a softer quarter for a number of smaller U.S. defense and space programs.
Industrial
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Total Industrial sales of
$51.0 million in the first quarter were down23.3% (27.1% in constant currency) compared to the first quarter of 2020. Lower wind energy sales drove the decrease, partially offset by stronger automotive sales. -
Wind energy sales (the largest submarket in Industrial) experienced a decline of
42.5% in constant currency compared to the first quarter of 2020. The decrease was due to general lower demand and the cessation of sales in North America following a previously reported customer demand shift.
Consolidated Operations
Gross margin for th
