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Hexagon Composites — Earnings Release 2022
Oct 14, 2022
3619_iss_2022-10-14_4ace86d9-4149-4ac6-aa86-80ab00b8b9cd.html
Earnings Release
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Hexagon Composites ASA: Revised full year guidance
Hexagon Composites ASA: Revised full year guidance
14 October 2022: Hexagon Composites ASA ("Hexagon") refers to its financial
guidance for 2022 for Hexagon excluding Hexagon Purus ("Purus") as communicated
in the second quarter reporting on 11 August 2022. The expected revenues were
stated between NOK 3.7 to 3.9 billion and EBITDA target of around NOK 400
million, with downside risk, for full year 2022.
Demand remains robust and revenues for 2022, mainly secured by backlog, are
expected to meet the guided target. However, we continue to experience
exceptionally high costs of production which we are unable to mitigate in the
short term. Hexagon is accordingly adjusting its EBITDA guidance for full year
2022 to approximately NOK 325 million.
The high costs of production are due to continued high costs of energy,
materials and components. While some raw material prices, such as aluminum and
steel, have come down from their peak, it will take two to three quarters before
these affect our component input prices. Additionally, Hexagon continues to
experience challenging operating conditions from supply chain disruptions
impacting production planning and efficiency. The unpredictable timing and
impacts of these factors are making precise profitability forecasting
challenging.
Since the first half of 2022, Hexagon's business units have passed on the
relevant price rises to their customers. Purchase orders confirmed before the
price increases and deliveries under Long Term Agreements (LTAs) with only
annual price adjustment clauses have not yet benefitted from these price
increases, but all new business and most deliveries under LTAs will be at
adjusted prices from the first quarter 2023. We will carefully consider further
price increases, balancing the need to restore healthy profit margins with the
need to support our customers in a challenging time for all levels in the value
chain. In addition, Hexagon has initiated other profitability initiatives taking
effect immediately.
Hexagon will publish its third quarter 2022 results at 07:00 CET on 3 November
For more information:
Karen Romer, SVP Communications, Hexagon Composites
Telephone: +47 950 74 950 |[email protected]
(https://www.globenewswire.com/Tracker?data=pGt2aMfuKGDiUeSDbz9hHCja4h8NaoR_laB_
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M1eCoR5wJtMGVtYFz0ZRoVnoJZA)
Ingrid Aarsnes, VP Investor Relations and ESG, Hexagon Composites
Telephone: +47 950 38 364 | [email protected]
(mailto:[email protected])
About Hexagon Composites ASA
Hexagon delivers safe and innovative solutions for a cleaner energy future. Our
solutions enable storage, transportation and conversion to clean energy in a
wide range of mobility, industrial and consumer applications. Learn more at
www.hexagongroup.com and follow @HexagonASA on Twitter and LinkedIn.
This information is inside information pursuant to the EU Market Abuse
Regulation and is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act. This stock exchange release was
published by Berit-Cathrin Høyvik, Director of Communications, on 14 October
2022 at 08:30 CET.