Hexagon Q3 tops forecasts helped by costs cuts and China demand
Q3 EBIT 250 mln euros vs 230 mln forecast
Q3 organic sales flat year-on-year
Saw strong growth in China
Adds background, detail, CEO comments
STOCKHOLM, Oct 28 (Reuters) - Industrial technology group Hexagon HEXAb.ST on Wednesday reported quarterly core earnings well ahead of market expectations helped by cost cuts and a broad-based recovery in China.
The maker of measurement and positioning systems and software said third-quarter adjusted operating earnings rose to 250 million euros ($295 million), up from 236 million in the year-earlier quarter, and ahead of the 230 million mean analyst forecast in a Refinitiv poll.
"We are pleased with the results, having delivered our best third-quarter earnings and profitability ever despite the significant currency headwind," CEO Ola Rollen said in a statement.
The company, which partly competes with companies such as Trimble TRMB.O and Autodesk ADSK.O, said organic sales growth was flat in the quarter compared to the year-ago period, with Asia up 5%, and regions EMEA and Americas down 1% and 2% respectively.
"We saw a robust sequential improvement in sales growth, supported by a broad-based recovery in China and a solid
development in our geospatial segments," Rollen said.
China was the big driver in the quarter with organic growth of 18%, mainly driven by strong growth in infrastructure and construction and a recovery in the electronics segment.
Hexagon's sensors and software are used for measurement and quality inspection in manufacturing processes and engineering plant design, and also in areas such as infrastructure planning, construction, mining, agriculture and energy.
($1 = 0.8461 euros)
(Reporting by Johannes Hellstrom; Editing by Simon Johnson)
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