Hexcel has strong first quarter

Hexcel has strong first quarter HEXCEL CORP, Stamford, Connecticut, USA, reports net sales of US$290.6 million for the first quarter of 2005, 10.6% higher than for the first quarter of 2004. In constant currency, revenues for the first quarter of 2005 were $286.2 million, or 8.9% higher than the first quarter of 2004. (‘Constant currency’ involves estimating net sales using the same US$, UK£ and Euro exchange rates as applied for the respective period in 2004.) Operating income for the first quarter of 2005 was $32.9 million, a 38.8% increase from the same period of 2004. Operating income margins as a percentage of sales increased to 11.3% from 9% in the first quarter of 2004. Revenues (in constant currency) in the company’s Commercial Aerospace business segment were $130 million for the first quarter of 2005, an increase of 17.6% over the first quarter of 2004. Airbus and Boeing raised their production levels for 2005 and because Hexcel delivers its products on average six months in advance of actual aircraft deliveries, the company first saw the benefit of these production increases last summer and they continued into this quarter. Further production

increases are anticipated in 2006, and Hexcel expects growth in commercial aerospace sales to continue in the second half of 2005. The continued ramp-up of production of the composite-laden Airbus A380 should also boost its revenues. Revenues (in constant currency) for the Industrial market segment were around $91.2 million for the 2005 first quarter, an increase of 7.4% from last year. Sales of composites products to wind energy applications led this sector’s growth, showing double-digit revenue gains this quarter compared to both the first and the fourth quarters of 2004. Hexcel anticipates significant growth from wind energy applications for the full year 2005 compared to 2004. The company says demand for its reinforcement fabrics used in ballistic applications remained robust, with the current quarter slightly down from the first and the fourth quarters of 2004 but within its expected range of quarterly variability. The company notes that with the growth in aerospace demand, availability of carbon fibre for nonaerospace applications continued to tighten and as a result constant currency revenues from products used

in recreational and other industrial applications were about 3% lower than in the first quarter 2004. Hexcel notes that all major carbon fibre suppliers have announced expansion plans which it expects to benefit availability in the medium term. Space and Defence revenues (in constant currency) of $48.4 million were down 6.2% compared to the first quarter of 2004. The first quarter of 2004 was the last quarter in which Hexcel saw revenues from the Comanche programme which was terminated in March 2004. Excluding sales to the Comanche programme, first quarter 2005 space and defence revenues were up 1% in constant currency over the same quarter last year. Hexcel says its revenues from military and space programmes tend to vary from quarter to quarter more than revenues from programmes in other market segments, as a result of customer ordering patterns and the timing of manufacturing campaigns. In the Electronics market segment, revenues for the quarter in constant currency were $16.6 million, which is 5% higher than the first quarter 2004. Hexcel Corp; website: www. hexcel.com.

People Johns Manville (JM) has named Per-Olof (P-O) Algotsson regional business leader – Europe, and Karin Demez has been named global product manager, of its Global

Reinforcements business. They report to Michael Huff, vice president and general manager of the Global Reinforcements business. Scott Bader has appointed Philip Bruce as Group

Managing Director. He takes over from Alan Bell, who is retiring. The role is based at the company’s UK headquarters and covers both the Composites and Specialty Polymers divisions.