Swedish Hex overcomes coin shortages to make record profit

  • Q4 adjusted operating profit of 373 million euros vs. 344 million euros forecast
  • Sales held back by shortage of components, but still on the rise
  • Shares up 3%

STOCKHOLM, Feb 2 (Reuters) – Swedish industrial technology group Hexagon (HEXAb.ST) beat market expectations with record quarterly profits on Wednesday as it posted a surge in sales despite a global component shortage .

The news sent shares of the measurement and positioning systems and software maker up 3% in early trading.

Hexagon reported a 24% year-over-year increase in fourth-quarter operating profit before items affecting comparability to €373 million ($421 million), helped by currency translation effects, higher sales and a more profitable product mix.

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Analysts polled by Refinitiv on average expected a profit of 344 million euros.

Sales increased by 7% on a like-for-like basis.

“Tight component supply reduced sales and organic growth by 6%, leading to further backlog growth and additional cost pressures,” CEO Ola Rollen said in a statement.

“But as evidenced by the strong operating results, we have managed to ease this constraint across the business.”

JP Morgan analysts said in a note to clients that the fact that Hexagon has seen a recovery in demand across most construction, automotive and manufacturing sectors should bode well for peers. such as Aveva (AVV.L), Dassault (DAST.PA), Siemens Digital (SIEGn.DE) and Autodesk (ADSK.O).

Hexagon offered to increase its annual dividend by 22% but noted that the overall outlook was unpredictable.

The group’s sensors and software are used for quality measurement and inspection in manufacturing processes and engineering plant design, as well as in infrastructure planning, construction, mining, l agriculture and energy.

($1 = 0.8861 euros)

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Reporting by Anna Ringstrom Editing by Niklas Pollard and Mark Potter

Our standards: The Thomson Reuters Trust Principles.

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