Hexcel Corp. (HXL, Financial) filed Quarterly Report for the period ended 2012-06-30.
Hexcel Corporation has a market cap of $2.52 billion; its shares were traded at around $24.63 with a P/E ratio of 18.4 and P/S ratio of 1.8. Hexcel Corporation had an annual average earning growth of 5.9% over the past 5 years.
Commercial aerospace sales of $233.5 million increased 12.4% for the quarter (14.2% in constant currency) as compared to the second quarter of 2011 and increased 17.4% (18.9% in constant currency) for the six-month period as compared to 2011. During the quarter, Airbus and Boeing related sales (which combined accounted for over 80% of our sales to this market) increased almost 13% driven by increases in new aircraft programs (A380, A350, B787, B747-8) which increased over 30% versus the same period last year and comprise about 30% of Commercial Aerospace sales. Airbus and Boeing legacy aircraft related sales for the quarter were up modestly compared to the second quarter of 2011 but were lower than the first quarter of 2012 as sales rates move in line with current aircraft production levels after a modest inventory restocking by our customers in the first quarter.
Commercial Aerospace: Net sales increased $25.7 million, or 12.4% (14.2% on a constant currency basis), to $233.5 million for the second quarter of 2012. Net sales for the six months ended June 30, 2012 increased $70.4 million or 17.4% (18.9% on a constant currency basis) to $475.8 million. For the quarter, Airbus and Boeing related sales were up almost 13%, driven by increases in new aircraft programs (A380, A350, B787, B747-8) which increased over 30% versus the same period last year and comprise about 30% of Commercial Aerospace sales. Airbus and Boeing legacy aircraft related sales for the quarter were up modestly compared to the second quarter of 2011 but were lower than the first quarter of 2012 as sales rates move in line with current aircraft production levels after a modest inventory restocking by our customers in the first quarter. Sales to other commercial aerospace, which includes regional and business aircraft customers, were up over 10% compared to the same period last year, but down slightly from the robust level of the first quarter of 2012.
Space & Defense: Net sales increased $6.4 million, or 7.8% (10.3% on a constant currency basis), to $88.1 million for the second quarter of 2012. Net sales of $173.0 million for the six months ended June 30, 2012 increased $11.6 million or 7.2 (8.9% on a constant currency basis), above the prior year level as we continued to benefit from rotorcraft growth.
Industrial: Net sales for the second quarter of 2012 increased $13.4 million, or 20.9% (28.3% on a constant currency basis) as compared to the second quarter of 2011. Net sales for the six months ended June 30, 2012 increased $32.0 million or 27.0% (32.5% on constant currency basis) to $150.5 million. Wind sales have now grown sequentially for the last six quarters.
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Hexcel Corporation has a market cap of $2.52 billion; its shares were traded at around $24.63 with a P/E ratio of 18.4 and P/S ratio of 1.8. Hexcel Corporation had an annual average earning growth of 5.9% over the past 5 years.
Highlight of Business Operations:
A number of our European subsidiaries are exposed to the impact of exchange rate volatility between the U.S. dollar and the subsidiaries functional currencies, being either the Euro or the British Pound Sterling. We entered into contracts to exchange U.S. dollars for Euros and British Pound Sterling through December 2014. The aggregate notional amount of these contracts was $275.8 million and $168.9 million at June 30, 2012 and December 31, 2011, respectively. The purpose of these contracts is to hedge a portion of the forecasted transactions of European subsidiaries under long-term sales contracts with certain customers. These contracts are expected to provide us with a more balanced matching of future cash receipts and expenditures by currency, thereby reducing our exposure to fluctuations in currency exchange rates. The effective portion of the hedges, losses of $7.8 million and $3.1 million, were recorded in other comprehensive income (OCI) for the three months and six months ended June 30, 2012, respectively, and gains of $2.7 million and $7.5 million for the three- and six-month periods ended June 30, 2011, respectively. The carrying amount of these contracts was $0.8 million classified in other assets and $8.0 million in other liabilities on the Condensed Consolidated Balance Sheets at June 30, 2012 and $0.6 million in other assets and $6.1 million classified in other liabilities at December 31, 2011. During the three months ended June 30, 2012 and 2011, we recognized net losses of $0.8 million and net gains of $1.8 million, respectively, recorded in gross margin. During the six months ended June 30, 2012 and 2011, we recognized net losses of $1.3 million and net gains of $1.3 million, respectively, recorded in gross margin. For the quarters and six-month periods ended June 30, 2012 and 2011, hedge ineffectiveness was immaterial.Commercial aerospace sales of $233.5 million increased 12.4% for the quarter (14.2% in constant currency) as compared to the second quarter of 2011 and increased 17.4% (18.9% in constant currency) for the six-month period as compared to 2011. During the quarter, Airbus and Boeing related sales (which combined accounted for over 80% of our sales to this market) increased almost 13% driven by increases in new aircraft programs (A380, A350, B787, B747-8) which increased over 30% versus the same period last year and comprise about 30% of Commercial Aerospace sales. Airbus and Boeing legacy aircraft related sales for the quarter were up modestly compared to the second quarter of 2011 but were lower than the first quarter of 2012 as sales rates move in line with current aircraft production levels after a modest inventory restocking by our customers in the first quarter.
Commercial Aerospace: Net sales increased $25.7 million, or 12.4% (14.2% on a constant currency basis), to $233.5 million for the second quarter of 2012. Net sales for the six months ended June 30, 2012 increased $70.4 million or 17.4% (18.9% on a constant currency basis) to $475.8 million. For the quarter, Airbus and Boeing related sales were up almost 13%, driven by increases in new aircraft programs (A380, A350, B787, B747-8) which increased over 30% versus the same period last year and comprise about 30% of Commercial Aerospace sales. Airbus and Boeing legacy aircraft related sales for the quarter were up modestly compared to the second quarter of 2011 but were lower than the first quarter of 2012 as sales rates move in line with current aircraft production levels after a modest inventory restocking by our customers in the first quarter. Sales to other commercial aerospace, which includes regional and business aircraft customers, were up over 10% compared to the same period last year, but down slightly from the robust level of the first quarter of 2012.
Space & Defense: Net sales increased $6.4 million, or 7.8% (10.3% on a constant currency basis), to $88.1 million for the second quarter of 2012. Net sales of $173.0 million for the six months ended June 30, 2012 increased $11.6 million or 7.2 (8.9% on a constant currency basis), above the prior year level as we continued to benefit from rotorcraft growth.
Industrial: Net sales for the second quarter of 2012 increased $13.4 million, or 20.9% (28.3% on a constant currency basis) as compared to the second quarter of 2011. Net sales for the six months ended June 30, 2012 increased $32.0 million or 27.0% (32.5% on constant currency basis) to $150.5 million. Wind sales have now grown sequentially for the last six quarters.
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