Hexpol reports record sales in 2021 despite challenges

MALMO, Sweden—Hexpol A.B. has reported record sales and operating profit (EBIT) for the year 2021 despite challenges posed by the slowdown in automotive production, supply-chain disruptions and COVID-19.

The Swedish group posted a 59-percent year-on-year increase in operating profit to $326 million (SEK 3.0 billion) during the year, on 20 percent higher sales to $1.7 billion, Hexpol announced Jan. 28. Profit after tax increased 67 percent to $250 million.

Over the final quarter of the year, sales grew 20 percent to $434 million, while operating profit declined 13.6 percent to $58 million, due mainly to non-recurring costs of the fire at Hexpol's rubber compounding site in Jonesborough, Tennessee, earlier in 2021.

"We had a strong sales growth of 20 percent compared with the corresponding quarter last year, driven by good sales in all markets and product areas," said President and CEO Georg Brunstam.

Brunstam said the higher sales came in despite "disturbances" such as production stoppages at automotive customers, global transport problems and raw material shortages.

"Our large geographical coverage with manufacturing close to our customers is a clear competitive advantage.

"(The year) 2021 as a whole was a very good year for the Hexpol Group with record sales and record profit, our best year so far," he added.

According to Brunstam, major challenges currently facing the Swedish group are the automotive industry's frequent production stoppages, supply-chain and raw materials disruptions as well as the "sharp increase" in absence due to the spread of COVID-19.

However, he went on to say, Hexpol is "flexible and ready to meet the expected increase in vehicle production."

Furthermore, Brunstam said the group was working on launching new compounds with bio-based and recycled materials as part of its sustainability target of reducing carbon footprint by 75 percent by 2025.