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Airtech

Hexcel Has Positive Outlook for Growth

04 June 2010

Hexcel’s outlook for the future includes double digit growth from the second half of 2010 through to 2013.

Mr. David Berges, Hexcel’s Chief Executive Officer, summarizing Hexcel's prospects commented, ""As a result of the recently announced increases in aircraft build rates over the next few years by Airbus and Boeing, as well as the continued progress on new aircraft programs, we are increasingly optimistic about the rest of 2010 and the next several years thereafter.”

“If our demand is in line with the announced build rates and the new programs ramp-up as expected, we would expect to average double digit sales growth (in constant currency and on a year-over-year basis) for the total company, beginning in the second half of 2010 and for the next several years. This growth would be led by the expected steady ramp in production of new composite intensive aircraft.""

Revenue

Commercial Aerospace. With announced increases in aircraft production and the contribution of new programs (A380, B787, B747-8 and A350), they say that total commercial aerospace revenues could grow at a 12-16% average rate through 2013. This pace of growth would allow Hexcel to double their 2009 revenues of $556 million in five years. By 2013, the new programs could provide almost the same revenues as the legacy programs at Airbus and Boeing. This projected growth rate assumes our regional and business jet sales grow at a modest 5% per year from the last twelve months (LTM) ending March 31, 2010 sales levels.

Space & Defence. Hexcel expect their Space & Defense revenues to be slightly above 2009 sales as the wind down in the F-22 program is offset by growth in rotorcraft programs. In the years ahead, they say that downside risk on the C-17 program should be more than offset by potential increased revenues from rotorcraft, A400M and Joint Strike Fighter (F-35). Thus, modest year over year growth could be expected for the next several years.

Industrial. While Hexcel say that wind energy sales are more difficult to predict, they expect sequential quarterly growth and a return to at least the sales levels of the second half of 2009. Their largest customer recently announced a target average growth rate of 15% per year through 2015, but they remain cautious about the near term. For the rest of industrial sales they expect modest GDP-type growth until USEC's American Centrifuge Project is restarted.






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