Hexagon Composites - Earnings Release 2015

Hexagon Composites ASA: Results for first quarter 2015

In the first quarter 2015 Hexagon Composites generated NOK 401.6 (410.5) million

in operating income and made an operating profit before depreciation (EBITDA) of

NOK 52.9 (85.1) million. Operating profit (EBIT) was NOK 39.5 (67.1) million and

profit before tax came to NOK 53.3 (57.5) million.

Operating results declined in the first quarter, versus first quarter 2014,

impacted by lower sales volumes for Mobile Pipeline(TM) solutions and Low-

Pressure Cylinders, together with higher costs related to the strengthening of

engineering, innovation and administration resources. Results were also impacted

by weak demand for light-duty vehicles. These effects were partly offset by

strong sales volumes in the heavy-duty truck and transit bus markets in North

America which reached record levels during the quarter, despite continued low

oil prices. Lower depreciation and finance related costs had a positive impact

of results for the quarter.

Key developments:

* Profitable quarter for the Group but relatively weaker margins

* Record delivery performance for Heavy-duty operations

* Somewhat soft Mobile Pipeline(TM )(Gas Distribution Products) sales due to

order postponements

* Reasonable capacity utilization in the Low-Pressure Cylinders segment, but

down from first quarter 2014

* Positive overall impacts of USD currency developments.

For more information:

Jon Erik Engeset, CEO, Hexagon Composites ASA

Telephone: +47 916 30 550 | [email protected]

David Bandele, CFO, Hexagon Composites ASA

Telephone: +47 920 91 483 | [email protected]

Solveig D Saether, Communication Manager, Hexagon Composites ASA

Telephone: +47 906 34 977 | [email protected]

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1919571]

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