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Hexcel Corporation (NYSE:HXL)(Paris:HXL), today provided its guidance for 2012, projecting solid growth in both revenues and earnings.
Mr. David Berges, Hexcel’s Chief Executive Officer, summarizing the Company’s outlook commented, “In 2012, we expect another year of double-digit sales growth, led by our Commercial Aerospace market thanks to on-going increases in aircraft build rates and new composite rich aircraft programs that are entering production. Although there is some uncertainty about the medium to long-term prospects of our Space & Defense sales due to potential military budget reductions, we still expect single digit growth in this market in 2012 due to global rotorcraft demand for our materials. Assuming reasonable availability of credit, we foresee a return to double-digit growth in our Industrial markets led by our wind energy sub-market. Our combined expectations lead us to conclude that 2012 revenues will be in a range of $1.5 billion to $1.6 billion, at today’s exchange rates.
We continue to target over 20% EBIT leverage on the increasing sales volumes, and 2012 diluted earnings per share should be in the $1.33 to $1.45 range. This includes an increase in depreciation of more than $8 million above 2011 levels. Improved profitability in high tax countries will likely cause our effective tax rate to increase to 32% for the year.
As previously disclosed, the surge in demand has led us to pull-forward our expansion plans and we now expect capital expenditures for 2012 to be in the $250 million to $275 million range. We still expect our capital spending to be funded by our cash from operating activities and our existing credit facilities.”
Hexcel Corporation is a leading advanced composites company. It develops, manufactures and markets lightweight, high-performance structural materials, including carbon fibers, reinforcements, prepregs, honeycomb, matrix systems, adhesives and composite structures, used in commercial aerospace, space and defense and industrial applications such as wind turbine blades.