MALMO, Sweden—Hexpol A.B. reported growth in both sales and operating profit in 2018, helped by acquisitions in Europe and the U.S.
In its annual financial report, Hexpol posted 2018 sales of $1.48 billion, a 13 percent increase compared to 2017. The firm said positive volume development as well as the strengthening of the dollar and Euro contributed to the growth.
Hexpol reported operating profit for 2018 rose 8 percent to $270 million. The firm attributed some of its growth to acquisitions in the second half of last year. The firm acquired U.S.-based Kirkhill Rubber for $47.6 million in September and an 80 percent stake in Italian compounder Mesgo in October.
CEO and President Mikael Fryklund said in a statement that the deals enhanced Hexpol's position in advanced elastomers and its presence in three new countries. He described 2018 as the firm's best so far and added that Hexpol is well positioned for further expansion.
Higher sales prices also helped improve income, Hexpol said. The Swedish group reported sales in Europe increased by 18 percent, 9 percent in NAFTA and 19 percent in Asia compared to 2017.
Sales in Hexpol's compounding business increased 13 percent to $269.9 million and operating profit by 7 percent to about $216 million. Its engineered products unit reported sales increase of 13 percent to $108 million, with operating profit up 27 percent at $15.6 million.