-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KAWa8zzTI+HRCYdEZaxX79XnxkJdFkwKWCeP5ADk1tfaNhOgS4aLTfR2II1o/TD4 v+mdQPJHi0hPBwa956WcQw== 0000950172-99-000857.txt : 19990707 0000950172-99-000857.hdr.sgml : 19990707 ACCESSION NUMBER: 0000950172-99-000857 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990706 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990706 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HEXCEL CORP /DE/ CENTRAL INDEX KEY: 0000717605 STANDARD INDUSTRIAL CLASSIFICATION: METAL FORGING & STAMPINGS [3460] IRS NUMBER: 941109521 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-08472 FILM NUMBER: 99659317 BUSINESS ADDRESS: STREET 1: 281 TRESSER BOULEVARD STREET 2: C/O TWO STAMFORD PLZ CITY: STAMFORD STATE: CT ZIP: 06901 BUSINESS PHONE: 2039690666 MAIL ADDRESS: STREET 1: 5794 W LAS POSITAS BLVD CITY: PLEASANTON STATE: CA ZIP: 945888781 8-K 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 July 6, 1999 (July 1, 1999) ------------------------------------------------ Date of report (Date of earliest event reported) Hexcel Corporation ------------------------------------------------------ (Exact Name of Registrant as Specified in Charter) Delaware 1-8472 94-1109521 -------------- --------------------- ------------------ (State of (Commission File No.) (IRS Employer Incorporation) Identification No.) Two Stamford Plaza 281 Tresser Boulevard Stamford, Connecticut 06901-3238 ------------------------------------------------------------ (Address of Principal Executive Offices and Zip Code) (203) 969-0666 ---------------------------------------------------- (Registrant's telephone number, including area code) N/A ------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) Item 5 Other Events. A copy of the press release issued by Hexcel Corporation, a Delaware corporation (the "Company") on July 1, 1999 is filed as Exhibit 99.1 to this Current Report and is incorporated herein by reference. Item 7 Financial Statements, Pro Forma Financial Information and Exhibits. (c) Exhibits 99.1 Press Release issued by the Company on July 1, 1999. Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: July 6, 1999 HEXCEL CORPORATION By: /s/ Ira J. Krakower -------------------------------- Name: Ira J. Krakower Title: Senior Vice President, General Counsel and Secretary EXHIBIT INDEX Exhibit No. Description - ----------- ----------- 99.1 Press Release issued by the Company on July 1, 1999 EX-99 2 EXHIBIT 99.1 - PRESS RELEASE Exhibit 99.1 CONTACTS INVESTORS: STEPHEN C. FORSYTH 203-969-0666 EXT. 425 STEPHEN.FORSYTH@HEXCEL.COM MEDIA: RONALD S. ZIEMBA 203-969-0666 EXT. 405 RON.ZIEMBA@HEXCEL.COM HEXCEL UPDATES 1999 SECOND QUARTER OUTLOOK SALES AND ADJUSTED EPS WILL BE LOWER THAN EXPECTED; GENERATING CASH FLOW TO REPAY DEBT STAMFORD, CT, July 1, 1999 - Hexcel Corporation (NYSE/PCX: HXL) today provided guidance on the performance of its business for the second quarter of 1999. "During May and June, sales demand in a number of the markets Hexcel serves has been lower than anticipated," said John J. Lee, the company's chairman and chief executive officer. "However, we are making good progress in our goal to generate cash for debt repayment through better management of working capital and capital expenditures." Regarding sales, Mr. Lee said, "In commercial aerospace, we have begun to experience the impact of inventory reductions and the forecast decrease in Boeing's build rates. Sales of the company's carbon fiber products are also being affected by the excess supply in the carbon fiber industry. While the market for electronic fiber glass materials appears to be stabilizing, sales of fabric products have been lower than anticipated for ballistic, composite reinforcement and decorative applications." As a result, Mr. Lee commented, Hexcel now expects net sales for the quarter to be in the range of $290 to $300 million, with gross margins in the range of 22% to 23% of net sales. This is expected to result in Adjusted EBITDA (earnings before interest expense, taxes, depreciation, amortization, equity in earnings of affiliated companies, and business acquisition and consolidation expenses) for the quarter of between $41.5 and $43.5 million. Mr. Lee noted that the company continues to generate cash to repay debt. "Free cash flow in the second quarter will permit the repayment of between $15 and $20 million of debt. We anticipate that we will continue to repay debt over the balance of 1999," Mr. Lee said. Commenting on earnings per share expectations, Mr. Lee said, "In light of current market conditions we now believe that Adjusted Diluted EPS (diluted earnings per share excluding business acquisition and consolidation expenses) will be in a range of $0.13 to $0.16 per share for the second quarter, and in a range of $0.60 to $0.70 per share for the year as a whole." "Hexcel is focused on improving performance and repaying debt by continuing to reduce costs and improve productivity through our Lean Enterprise and other initiatives," Mr. Lee said. "We are convinced that this is the right emphasis to maintain and strengthen our position as the global leader in advanced structural materials, and thereby enhance the value of our shareholders' investment." Hexcel expects to report the results of its second quarter of 1999 on the evening of Tuesday, July 20, 1999. Hexcel Corporation is the world's leading advanced structural materials company. It develops, manufactures, and markets lightweight, high-performance reinforcement products, composite materials and engineered products for use in commercial aerospace, space and defense, electronics, recreation and general industrial applications. DISCLAIMER ON FORWARD LOOKING STATEMENTS This press release contains statements that are forward looking, including statements relating to market conditions, sales, gross margin percentage, Adjusted EBITDA, and Adjusted Diluted EPS, cash generation, debt repayment, and productivity improvements. These statements are not projections or assured results. Actual results may differ materially from the results anticipated in the forward looking statements due to a variety of factors, including but not limited to, changing market conditions, increased competition, product mix and currency. Additional risk factors are described in the company's filings with the SEC. The company does not undertake an obligation to update its forward looking statements to reflect future events or circumstances. -----END PRIVACY-ENHANCED MESSAGE-----