November 23, 2022

Hexagon Announces First Quarter Financial Results – Metrology and Quality News

Hexagon Group announced that its net operating revenue increased by 19% to reach 1,163.4 MEUR (977.9). Using fixed exchange rates and a comparable group structure (organic growth), net sales increased by 10% compared to the 1st quarter of 2021.

The Hexagon Industrial Enterprise Solutions (IES) division, which includes metrology systems, CAD, CAM and CAE software, reported net operating revenue of EUR580.7m (475.3). Using fixed exchange rates and a comparable group structure (organic growth), net sales increased by 10% compared to the same period in 2021.

Regionally, organic growth was 12% in Asia, 10% in EMEA and 9% in the Americas.

In Asia, China recorded organic growth of 14%, fueled by strong growth in the aerospace, automotive and software portfolios, but hampered by a difficult oil and gas market. The rest of Asia saw solid growth driven by strong demand for design and production software.

In EMEA, Western Europe recorded organic growth of 13%, driven by a recovery in aerospace and strong demand in automotive, manufacturing, power and energy. Russia fell significantly, reflecting the impact of sanctions imposed by the European Union and the United States as well as measures taken to freeze business operations in Russia in March. Africa and the Middle East recorded double-digit growth.

In the Americas, North America recorded organic growth of 8%, driven by a recovery in aerospace and solid demand in the general manufacturing, automotive, electrical and power segments. ‘energy. South America recorded strong double-digit growth, driven by continued growth in the power and energy segment.

Manufacturing Intelligence recorded organic growth of 13%, driven by strong and widespread demand across key industries, regions and software solutions. The PPM division recorded organic growth of 2%, fueled by growth in design and asset information management software, driving continued recovery in EMEA and the Americas. Both divisions were negatively impacted by Russia.

“Hexagon achieved another record quarter, recording sales growth of 19%, including 10% organic growth, gross margin of 65% and an operating margin of 29%. All divisions improved their results. The supply situation for critical electronics components remained tight and negatively impacted organic sales growth by approximately -6% in the quarter, which also had an impact on profitability and cash flow. Hexagon also decided to freeze its activities in Russia, which reduced growth of approximately -1% organic growth during the quarter. Russia previously accounted for around 2% of Hexagons’ annual sales.

“As we review the global macroeconomic environment, we closely monitor key themes: the labor market, inflation and aggregate demand. Despite the political and Covid-19 challenges in some parts of the world, our growth reflects the very strong demand prevailing situation in the global economy. declared Ola Rollén, President and CEO, Hexagon AB.

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