HEXPOL: Half-year report January-June 2013

Regulatory News:

HEXPOL AB (STO:HPOLB):

Second quarter of 2013 – Another strong quarter

• Sales amounted to 2,060 MSEK (2,121).
• Operating profit rose 9 per cent to 312 MSEK (287).
• Operating margin improved to 15.1 per cent (13.5).
• Profit after tax increased 18 per cent to 228 MSEK (194).
• Earnings per share increased 18 per cent to 6.62 SEK (5.63).
• Operating cash flow amounted to 385 MSEK (351).

First half of 2013 – Continued strong earnings development, our best results to date

• Sales amounted to 4,074 MSEK (4,263).
• Operating profit rose 9 per cent to 610 MSEK (559).
• Operating margin improved to 15.0 per cent (13.1).
• Profit after tax increased 18 per cent to 444 MSEK (375).
• Earnings per share increased 18 per cent to 12.90 SEK (10.89).
• Operating cash flow amounted to 625 MSEK (591).
• The US rubber compounding company, Robbins, which was acquired in November 2012, has been successfully integrated.

President’s comments

"The second quarter of 2013 was also a strong quarter for the HEXPOL Group, the best to date in terms of earnings. Our earnings per share rose significantly to 6.62 SEK (5.63), up 18 per cent. The operating margin improved further to 15.1 per cent (13.5) and our operating profit rose 9 per cent to 312 MSEK (287). Volumes improved but sales were negatively impacted by currency effects and that we once again noted a price reduction for our principal raw materials. Sales in the second quarter of 2013 were higher than during the first quarter. Operating cash flow remained strong and amounted to 385 MSEK (351).

The first half of 2013 was a period characterised by a strong earnings development. Our earnings per share rose 18 per cent to 12.90 SEK (10.89). During the first half of 2013, the US rubber compounding company Robbins was successfully integrated with a better earnings development than planned. Our balance sheet is strong and, with a net debt/equity multiple of 0.3 (0.4), we are well equipped for continued expansion."

Georg Brunstam, President and CEO

HEXPOL is a world-leading polymers group with strong global positions in advanced rubber compounds (Compounding), gaskets for plate heat exchangers (Gasket), and plastic and rubber materials for truck and castor wheel applications (Wheels). Customers are primarily OEM manufacturers of plate heat exchangers and trucks, global systems suppliers to the automotive and engineering industries, the energy sector and the medical technology industry. The Group is organised in two business areas, HEXPOL Compounding and HEXPOL Engineered Products. The HEXPOL Group’s sales in 2012 amounted to 8,007 MSEK. The HEXPOL Group has approximately 3,400 employees in ten countries. Further information is available at www.hexpol.com.

This report may contain forward-looking statements. When used in this report, words such as "anticipate", "believe", "estimate", "expect", "intend", "plan" and "project" are intended to identify forward-looking statements. They may involve risks and uncertainties, including product demand, market acceptance, the effect of economic conditions, the impact of competitive products and pricing, foreign currency exchange rates and other risks. These forward-looking statements reflect the views of HEXPOL’s management as of the date made with respect to future events and are subject to risks and uncertainties. All of these forward-looking statements are based on estimates and assumptions made by HEXPOL’s management and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results or experience could differ materially from the forward-looking statements. HEXPOL disclaims any intention or obligation to update these forward-looking statements.

The report consists of information that HEXPOL AB (publ) is obliged to disclose in accordance with the Swedish Securities Market Act and/or the Financial Trading Instruments Act. The information was submitted to the media for publication on 18 July 2013 at 12:00 p.m. CET. This report has been prepared both in Swedish and English. In case of any divergence in the content of the two versions, the Swedish version shall have precedence.

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