US: Hexagon reported 5% organic growth in the third quarter while recorded sales grew by 0%. Operating profit increased by 3% to 118.4 MEUR. The organic growth in the Group’s core business, Measurement Technologies (MT), was 5% and net sales amounted to 566.1 MEUR. Geosystems reported organic growth of 12% and represented 35% of net sales in the third quarter.
“Hexagon reports 5% organic growth in the third quarter. Geosystems” growth accelerated, supported by an improving European construction market and strong customer demand for the new products launched in July. We experienced solid demand in the aerospace, power and energy sectors, but faced weakness in the US defence sector, as well as automotive, which is currently in the trough of its capex cycle. The operating margin expansion in the quarter underscores the shift in our business model as we move towards software centric solutions. We continue to report strong cash flow which has enabled us to increase expansion activity, evidenced by the acquisitions of Devex, AHAB, and the public offer for Veripos”, said Ola Rollen, President and CEO, Hexagon AB.