The composites Hexcel is now supplying to Airbus for its A350 XWB programme have a value of $5 million per plane and are expected to drive growth of over 10% for the company in the next few years.?
?In 2014, we expect another record year with constant currency sales growth of approximately 10%, continued operating income margin expansion, double-digit growth in earnings per share and to generate free cash flow while continuing to fund our capital expenditures ramp-up,? says CEO Nick Stanage. ?Commercial Aerospace will again lead our sales growth. While the B787 was a key driver of this in 2013, Hexcel content per A350 XWB is now estimated at $5 million per shipset ? a significant milestone that reflects both the breadth and depth of our products as well as nearly ten years of dedicated effort.?
Hexcel anticipates 2014 revenues of between $1.80-1.88 billion in 2014, compared to 2013 revenue of between $1.65-1.68 billion. Commercial Aerospace, which comprises about 63% of the company?s last twelve months sales, will be driven by sales to Airbus, Boeing, and their subcontractors thanks to on-going increases in aircraft build rates and new composite-rich aircraft programmes that are ramping up. Regional and business aircraft account for the remaining 15% of Commercial Aerospace sales and are also expected to increase in 2014.
Hexcel expects continued mid-single digit growth in the Space and Defense market in 2014, which comprises 23% of the company?s sales. Growth will be led by the A400M military transport and global rotorcraft demand for Hexcel materials. The V-22 will begin to see the expected decline in build rate, but will likely remain the company?s largest S&D programme in 2014. In the Industrial markets (comprising 14% of total sales) Hexcel foresees mid-single digit growth in 2014, both for wind turbine sales, as well as other industrial sub-markets.
Capital expenditures for 2014 are targeted to be $225 million to $250 million. This amount is higher than the company?s estimates from a year ago, reflecting Hexcel?s increased content on the A350 XWB and to support higher aerospace growth in the mid-term. There is no change in Hexcel?s view on total capital expenditures needed to reach its $2.5 billion sales target in 2017.