MALMO, Sweden—Swedish compounder Hexpol A.B. said its adjusted operating profit for the third quarter will be "well above market expectations."
In an investors trading update on Oct. 5, Hexpol said it anticipated that adjusted operating profit for the quarter ended Sept. 30 to be in the range of $63 million to $67 million.
Hexpol's operating profit (excluding non-recurring items) fell 30 percent year-on-year to $90 million on 11 percent lower sales of $755 million during the first six months of 2020.
Second quarter results were particularly hit by the COVID-19 pandemic—the group reported a 62 percent decline in profits to $23 million.
Hexpol linked the third quarter increase to "higher volumes compared to the previous quarter combined with substantially lower costs."
The compounder expects sales to be in line with expectations.
Hexpol said the third quarter results will not have any benefits related to COVID-19 Swedish government grants.
The group will publish its full third quarter report on Oct. 23.