Compounder Hexpol (Malmö / Sweden; www.hexpol.com) improved by 47% in its fourth-quarter operating profit at SEK 622m (EUR 74.3m) on the back of significant cost cuts. Excluding one-offs, it was up 19% year-on-year. Revenues plunged 10% to SEK 3.4 bn due mainly to unfavourable foreign exchange rates.

CEO Georg Brunstam said the combination of increased volumes and lower cost base made it Hexpol’s “best” quarterly result, noting that the very good cash flow “gives us good conditions for continued growth and intensified acquisition agenda”.

There will be a “strong mergers-and-acquisitions focus” in 2021, according to Hexpol’s presentation charts to analysts.

Sales at the Compounding segment, which generate 93% of the group’s revenues, slumped 10% to SEK 3.159 bn, with currency effects accounting for 7% of the decline. Volumes expanded on strong demand from automotive, building and construction customers. Operating profit jumped 18% at SEK 580 excluding one-offs on volume growth and lower cost base. The Engineered Products segment sales were flat but operating profit rose 42%.

The charts revealed that a “tragic fire” occurred at Hexpol Compounding plant in Jonesborough, Tennessee / USA on 7 January 2021, with one employee suffering severe burns. There was “major damage to buildings and production equipment”. It said all customer orders were already transferred to one of the other 14 units in the Americas.