At its 2009 year end report, Technology company Hexagon highlighted a 4th quarter recovery in demand albeit from low levels, strong margins and a record cash flow.
CEO and President Ola Rollén said that demand had improved in nearly all markets, with sales in dropping by 8% at 3,145MSEK but order intake only by 1%. EBIT was 18.1% at 566 MSEK. These results, said Mr Rollén, are a combination of exposure to emerging markets (economic growth), a cost rationalisation programme and new product launches.
Hexagon’s sales volume drop for the whole of 2009 was 19% - very close to Ola Rollén’s worst case scenario of 20% , presented to analysts at the end of 2008. In line with that scenario, and to defend the EBT margin, the Hexagon workforce was reduced by 1,180. Looking to the future, Mr Rollén said, “For 2010, we see the recovery continuing in Western Europe. Eastern Europe is expected to bottom out in the first half of 2010. In Russia and Africa., we expect continued growth. North America is expected to recover, with South America expected to display strong growth. We also expect Asia to continue growing at strong rates.”
Overall, Mr Rollén said that Hexagon is well positioned to capitalise on opportunities coming up in the next few months.