Sweden's Hexagon tops Q2 profit view boosted by accelerating sales growth
Sweden's Hexagon tops Q2 profit view boosted by accelerating sales growth July 29 (Reuters) - Swedish industrial technology group Hexagon HEXAb.ST on Wednesday reported a rise in its quarterly adjusted operating profit helped by very strong organic revenue growth.
The maker of measurement and positioning systems said its adjusted operating earnings rose to €272 million ($310 million) in the April-June quarter, from €260 million a year ago. That beat the average estimate of €250.6 million from nine analysts polled by LSEG.
"Strong demand in aerospace & defence, general manufacturing and electronics markets, alongside our portfolio of new products, drove 12% organic growth, more than compensating for weaker markets elsewhere and demonstrating the benefits of our diversified end-markets," CEO Anders Svensson said in the earnings statement.
Organic growth in the quarter accelerated to 12% from 3% a year ago, the highest level in five years.
The Autonomous Solutions unit led growth, with organic growth of 20%.
Hexagon said its cost-cutting programme was largely complete, with annualised savings reaching €73 million and contributing €14 million to Q2 earnings.
Shares rose about 9% in early trading, among the top performers on Europe's STOXX 600 index .STOXX.
Hexagon completed the spin-off of Octave in May.
($1 = 0.8772 euros)
(Reporting by Marta Frąckowiak in Gdansk; Editing by Milla Nissi-Prussak)
((marta.frackowiak@thomsonreuters.com))