Hexcel Corporation (HXL) reported third quarter results Oct. 18. The results were somewhat mixed, although the firm’s adjusted EPS of 13 cents, plus third quarter net sales of $333.8 million, were fairly good news. Pre-market today, HXL stock decreased 1.46% in value.
Commercial Aerospace, Space & Defense Sales Increase
Hexcel’s Commercial Aerospace sales increased 29.8%, up to $167.2 million compared to third quarter 2020. The increase, according to the company, can be largely attributed to narrow-body aircraft sales. Sales related to Space & Defense increased 1.5%, hitting $110.4 million. “F-35, CH-53K, civil helicopters in Europe and unmanned aerial vehicles in the U.S. were areas of strength in the third quarter.”
Wind Energy Sales Decline
Wind energy sales — which are the company’s largest industrial category submarket — declined by 31.6% in the third quarter of 2021. During the first nine months of this year, “wind energy sales decreased 40.3% … compared to last year, reflecting lower demand and the cessation of sales in North America.”
Supply Chain and Year-to-Date Results
“We are closely monitoring our supply chain and have our global supply chain team focused on managing the continued availability of raw materials through these challenging times. Thanks to our long-term supply contracts and commodity hedging, we did not experience any noticeable cost inflation during the third quarter, yet we remain vigilant,” CEO Nick Stanage said.
Guidance and Dividend
The company said both its dividend and forward guidance remain suspended due to the pandemic.