Composites manufacturer Hexcel Corp. (HXL) Monday announced a sharp decline in profit for the third quarter, compared with the year-ago period, as net sales declined 22.4%.
Stamford, Connecticut based Hexcel reported third-quarter net income of $10.4 million or $0.11 per share compared with $33.0 million or $0.34 per share in the same period last year.
The year-ago results included an $11.7 million after tax gain on the sale of Hexcel's share in BHA Aero Composites Parts, according to the company.
Excluding the effect of this sale and other special items, third quarter non-GAAP net income decreased to $9.3 million or $0.10 per share, from $21.3 million or $0.22 per share in the year-ago period.
On average, 12 analysts' polled by Thomson Reuters expected the company to earn 10 cents per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter declined to $257.1 million from $331.4 million reported for the third quarter of 2008, due to supply chain inventory adjustments combined with typical seasonal factors.
Ten analysts expected the company to generate $246.57 million in sales for the period.
Operating income for the third quarter declined to $19.6 million from $35.9 million for the same quarter last year. Adjusted operating income was down at $17.9 million, compared with $36.6 million one year ago.
While the company sold 27.8% lower at $127.5 million for the quarter in its Commercial aerospace market and 30.5% lesser at $55.1 million in Industrial markets, Space and Defense market sales remained flat at $74.5 million compared to last year.
Hexcel's Composite Materials segment earned $195.85 million for the quarter, less from $268.6 million last year. Engineered products segment generated revenues of $61.3 million compared with $62.8 million in the year-ago period.
For the nine months, the company's net income declined to $50.6 million or $0.52 per share from $82.9 million or $0.85 per share in the prior-year. Adjusted net income was $50.6 million or $0.52 per share compared with $64.0 million or $0.66 per share in the last year period.
Total net sales for the nine-month period declined to $841.7 million from $1.03 billion reported for the same period in 2008.
HXL finished Monday's regular trade at $11.74, down by 18 cents or 1.51% on the New York Stock Exchange.
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