Technology company, Hexagon AB, have reported an increase of 18% in net sales to €591.6 M (€501.1) for the fourth quarter 2011. Using fixed exchange rates and a comparable group structure, net sales increased by 6 per cent. Operating earnings (EBIT1) increased by 18 per cent to €121.8 M (€103.5).
Geosystems, which represented 33 per cent of Group sales in the fourth quarter, recorded an organic growth of 0 per cent in net sales. Geosystems’ growth was adversely affected by the lack of investment in the high-speed rail network in China during the quarter. Excluding this negative effect Geosystems would have reported an organic growth of 4 per cent.
Metrology, which represented 31 per cent of Group sales, displayed 15 per cent organic growth in net sales.
Technology, which includes the acquisition of Intergraph in late 2010, represented 33 per cent of net sales. Intergraph was consolidated as of November 2010 and the organic growth for the period Nov-Dec 2011 was 5 per cent. The Intergraph PP&M division reported strong double digit growth whereas the SG&I division reported slightly negative growth
Commenting on the company’s year end report, Ola Rollén, president and CEO, Hexagon AB said, ”Four years ago we launched an ambitious financial plan, to reach sales of 20 billion SEK with a 20 per cent EBIT margin by 2011 – the 20-20-11 plan. We have met our commitments and close the books on 2011 with a sense of fulfilment. Our new plan is to grow sales to €3.5 billion and to improve our EBIT margin from 20 per cent to 25 per cent before the end of 2015. We are excited about our future. The transition from delivering primarily hardware into selling software centric solutions continues to shape new opportunities.”
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