Hexcel Corp. posted third-quarter net sales of $491.5 million, a 1.8 percent decrease from the third quarter of 2016.
Sales in the Stamford firm’s commercial aerospace division, which represented 72
percent of year-to-date sales, totaled $352.6 million, 2.7 percent lower on a constant currency basis from the first nine months of last year. Space and defense, representing 17 percent of YTD sales, totaled $247.3 million, up 2.6 percent from the same period last year, while industrial, accounting for 11 percent of YTD sales, came in at $165.6 million, 15.4 percent lower than the first nine months of 2016 sales.
Gross margin for the just-completed quarter was 27.6 percent compared with 27.1 percent in the third quarter of 2016. Adjusted operating income in the third quarter of 2017 was $89.1 million, or 18.1 percent of sales, compared with $89.1 million, or 17.8 percent of sales, in 2016. The third quarter of 2017 was favorably impacted from exchange rates by about 40 basis points compared with 2016.
“We remain positive about the outlook for 2018 growth through aerospace, wind and automotive opportunities, and – as we near the end of our current investment phase – we expect to enter a period of record cash generation,” Chairman, CEO and President Nick Stanage said.
The company’s board of directors has declared a regular quarterly cash dividend of 12.5 cents per share on the common stock, payable on Nov. 8 to stockholders of record as of Nov. 1.
Hexcel develops, manufactures and markets lightweight, high-performance structural materials including carbon fibers and specialty reinforcements for use in commercial aerospace, space and defense and industrial applications.