Hexcel Corporation today reported results for the first quarter of 2005 showing net sales for the first quarter of 2005 were $290.6 million, 10.6 percent higher than the $262.8 million reported for the first quarter of 2004.
The report shows commercial aerospace segment revenues were $130.0 million for the first quarter of 2005, an increase of 17.6 percent over revenues of $110.5 million reported for the first quarter of 2004. The company stated that these increases were the results of Airbus and Boeing raising their production levels for 2005. “”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 to be evident this quarter.””
The report added that with further production increases anticipated in 2006, the Company expects growth in commercial aerospace sales to continue in the second half of 2005. Further, the continued ramp-up of production of the composite-laden Airbus A380 will provide Hexcel with added commercial aerospace revenue growth.
Hexcel also saw increases in the Industrial market segment with revenues for the quarter $91.2 million, an increase of 7.4 percent compared to revenues of $84.9 million last year.
The report lists sales of composites products to wind energy applications showing strong double-digit revenue gains this quarter compared to both the first and the fourth quarters of 2004 and led the overall growth of the industrial market segment due to both underlying growth in global wind turbine installations and share gains the Company made in 2004. The Company continues to anticipate significant growth from wind energy applications for full year 2005 compared to 2004.
Demand for the Company’s 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 our expected range of quarterly variability. With the growth in aerospace demand, availability of carbon fibre for non-aerospace 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.
The company added that all major carbon fibre suppliers have announced expansion plans which should benefit availability in the medium term.
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