Home Business Finance Hexagon Q1 earnings up 9%; MSC Software acquisition process over

Hexagon Q1 earnings up 9%; MSC Software acquisition process over

Sweden: Hexagon came out with its interim report on Tuesday. In the first quarter of 2017, the company shows an increase in net sales by 7% at 778.1 million euro. Using fixed exchange rates and a comparable group structure (organic growth), net sales increased by 3%.

The report mentions a 9% increase in Hexagon’s operating earnings at 174.5 million euros. It shows net earnings of 138.9 million euros; whereas the per share earnings increased by 9% to 0.38 euros.

The report also mentions the acquisition of Hexagon’s MSC Software at a purchase price of $834 million on a cash and debt free basis, and the company will be consolidated as of April 26.

Moreover, the company also conducted an Annual General Meeting on Tuesday. It elected John Brandon, Henrik Henriksson, Hans Vestberg, Sofia Schörling Högberg and Märta Schörling Andreen as ordinary board members. The company also re-elected Directors Ola Rollén, Gun Nilsson and Ulrika Francke as board members. Gun Nilsson has been elected as the Chairman of the Board and Hans Vestberg as the Vice Chairman of the Board.

“It’s full speed ahead for Hexagon in 2017! We’re pleased with the results in Q1, reporting strong growth in our manufacturing, construction and positioning portfolios and good profit development in all divisions apart from PPM,” said Ola Rollen, CEO, Hexagon AB.

He added, “We announced the acquisition of MSC in direct support of our smart connected factory strategy and launched a group-wide cost savings program to further accelerate our margin expansion. Hexagon reported 3% organic growth. If we exclude oil and gas related business, organic growth was 6%. However, we are confident that the actions we’ve taken in PPM this quarter will generate future growth and improved margins.”