NACKA STRAND, Sweden, July 13, 2020 /PRNewswire/ -- Due to higher earnings than market expectations for the second quarter of 2020, Hexagon is today publishing its preliminary results. Adjusted operating profit (EBIT1) for the second quarter 2020 amounted to 226 MEUR (239) corresponding to an EBIT1 margin of 25.3 per cent (24.5). Net sales amounted to 897 MEUR (976) and organic sales declined by -10 per cent compared to the same period last year. Regarding the reporting segments within Hexagon, Industrial Enterprise Solutions recorded -10 per cent organic growth and Geospatial Enterprise Solutions recorded -9 per cent organic growth. Continued growth in software and services combined with a recovery in China and temporary short-term cost saving measures contributed to the resilience of the earnings development despite the disruptions caused by the COVID-19 pandemic.
As previously communicated, Hexagon is implementing long-term cost saving actions and has taken a one-off charge of -135 MEUR in the second quarter which is expected to result in annualised cost savings of approximately 125-150 MEUR by the end of 2020. The implementation of these long-term measures is expected to offset any reversal of the short-term saving effects seen during the second quarter.
All figures presented in this press release are preliminary. Hexagon will not make any further comments until the report for the second quarter of 2020 has been published on 24 July 2020, at around 8:00 CET. Hexagon will host a webcast and conference call the same day at 10:00 CET.
This is information that Hexagon AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 18:00 CET on 13 July 2020.
For further information, please contact:
Maria Luthström, Head of Investor Relations, Hexagon AB, +46-8-601-26-27, [email protected]
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