Hexcel Corporation (NYSE:HXL)(Paris:HXL), today provided its guidance for 2013, outlook and targets for the next five years, and announced a share repurchase program.
Mr. David Berges, Hexcel’s Chief Executive Officer, summarizing the Company’s outlook commented, “In 2013, we expect another year of double digit sales growth in our Commercial Aerospace market, which comprises about 60% of our total sales. This growth will come from sales to Airbus, Boeing, and their subcontractors, thanks to on-going increases in aircraft build rates and new composite rich aircraft programs that are entering production or ramping up. We expect the regional and business aircraft market to be flat, though this sub-market accounts for less than 20% of our Commercial Aerospace sales. We expect modest single digit growth in the Space & Defense market in 2013 led by global rotorcraft demand for our materials. We foresee a modest decline in our Industrial market, reflecting a 15% to 20% drop in our wind turbine sales partially offset by other industrial sub-markets. Our overall 2013 revenue guidance is in the range of $1.64 billion to $1.74 billion, at today’s exchange rates, with a resultant 2013 diluted earnings per share in the $1.66 to $1.78 range. We expect capital expenditures for 2013 to be $180 million to $200 million. Our 2013 effective tax rate should remain around 32%. We expect about a $30 million increase in cash taxes as our income grows and available tax carry-forwards are exhausted. We expect free cash flow to be in the range of $20 million to $60 million for the year, with the typical use of cash in the first quarter.”
Longer Term Outlook
Mr. Berges added, “Over the next five years, we expect sales to Airbus, Boeing, and their subcontractors to maintain a double digit growth rate based on projected build rates and our targeted content on new programs, including over $4 million per aircraft on the A350-900. We expect some gradual recovery of sales to regional and business aircraft, and assume single digit growth after 2013. We continue to expect single digit growth in our Space & Defense market. While the wind energy sub-market will be down in 2013, we expect it to resume growth in 2014 and beyond. Other industrial markets are expected to track with the economy.