MALMO, Sweden — Hexpol A.B. has posted what it claims is its best year so far in terms of financial results.
In 2017, group sales rose 12 percent year-on-year to $1.5 billion, while operating profit increased 3 percent to just under $253.2 million, Hexpol said Feb. 2.
These results were posted during a fourth quarter that faced "continued raw materials price pressure" as well as a 3.5 percent decline in operating profit to $59.1 million, compared to the same quarter in 2016.
Commenting on the company results, President and CEO Mikael Fryklund said sales to automotive related customers were still solid in the fourth quarter.
Fryklund, who took over as Hexpol boss last July, also noted improved demand within engineering and general industry as well as construction industry.
Sales in Europe, including the recently acquired businesses of Berwin Group and Trelleborg Material & Mixing Lesina, rose 24 percent in 2017.
In the NAFTA region, sales increased 7 percent, while Asia delivered 16 percent growth in demand.
Despite the healthy growth in sales, exchange rate fluctuations had a negative impact of $253,200 on operating profit for the year.
Hexpol Compounding's sales increased 13 percent to $1.4 billion, compared to the previous year, with operating profit of the unit up 4 percent at $2.4 billion.
Sales within Hexpol's Engineered Products business also rose 6 percent to $114.4 million. Operating profit dipped slightly at $14.3 million, compared to $14.6 million the previous year.