-----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, CSKqKgYJ4DsHb6yWGmvPM884i2lJE9F9+g80DbH2FZSZC/mKe/eIWEq7iiZUNyZS D+bgGxV0FydfxWxEAb38SQ== 0000950172-99-000944.txt : 19990722 0000950172-99-000944.hdr.sgml : 19990722 ACCESSION NUMBER: 0000950172-99-000944 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19990721 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990721 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: 99667919 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 21, 1999 (July 19,1999) ________________________________________________ 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. Copies of the press releases issued by Hexcel Corporation, a Delaware corporation (the "Company") on July 20, 1999 and July 19, 1999 are filed as Exhibits 99.1 and 99.2, respectively, to this Current Report and are 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 20, 1999. 99.2 Press Release issued by the Company on July 19, 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 21, 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 20, 1999. 99.2 Press Release issued by the Company on July 19, 1999. EX-99 2 EXHIBIT 99.1 - PRESS RELEASE EXHIBIT 99.1 NEWS RELEASE Hexcel Corporation, 281 Tresser Boulevard, Stamford, CT 06901 (203) 969-0666 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 REPORTS 1999 SECOND QUARTER RESULTS FREE CASH FLOW FOR THE QUARTER REACHES $24 MILLION STAMFORD, CT, July 20, 1999 - Hexcel Corporation (NYSE/PCX: HXL) today reported net income for the second quarter of 1999 of $4.3 million, or $0.12 per diluted share, compared with $20.0 million, or $0.46 per diluted share, for the second quarter of 1998. Excluding business acquisition and consolidation expenses of $1.4 million ($0.9 million after tax) incurred in the second quarter of 1999, diluted earnings per share were $0.14. For the quarter ended June 30, 1999, Hexcel generated free cash flow (change in debt net of cash) of $24 million, which exceeded preliminary estimates. The generation of free cash flow was used to repay Hexcel's debt.
- ----------------------------------------------------------------------------------------------------------------- Quarter Ended June 30, Pro Forma (In millions, except per share data) 1999 1998 (a) 1998 -------------------------------------------------------------------------------------------------------------- Net sales $ 292.7 $ 324.8 $ 273.5 Gross margin % 22.6% 25.5% 26.0% Adjusted operating income % (b) 9.0% 13.7% 13.9% Adjusted EBITDA (c) $ 42.0 $ 59.2 $ 48.0 Business acquisition and consolidation expenses $ 1.4 $ - $ - Net income $ 4.3 $ 20.1 $ 20.0 Adjusted net income (b) $ 5.2 $ 20.1 $ 20.0 -------------------------------------------------------------------------------------------------------------- Diluted earnings per share $ 0.12 $ 0.47 $ 0.46 Adjusted diluted earnings per share (b) $ 0.14 $ 0.47 $ 0.46 --------------------------------------------------------------------------------------------------------------
(a) Pro forma results gives effect to the September 1998 acquisition of Clark Schwebel, as if the transaction had occurred at the beginning of 1998. (b) Excludes business acquisition and consolidation expenses and related income taxes, as applicable. (c) Excludes business acquisition and consolidation expenses, interest, taxes, depreciation, amortization, and equity in earnings of affiliated companies. Net sales for the second quarter of 1999 increased 7% to $292.7 million, compared with $273.5 million for the second quarter of 1998. Pro forma sales for the second quarter of 1998, which gives effect to the September 1998 acquisition of Clark Schwebel as if the transaction had occurred at the beginning of 1998, were $324.8 million. Changes in foreign exchange rates did not have any significant effect on these comparisons. Hexcel's gross margin for the second quarter of 1999 was 22.6% of sales, compared with 26.0% for the second quarter of 1998. Pro forma second quarter 1998 gross margin was 25.5%. The decreases in sales and gross margin percentage compared to 1998 pro forma results reflect reduced sales volume to the commercial aerospace market as a result of the supply chain impacts of Boeing's planned reduction in deliveries in 2000, lower prices in the global electronics market because of intensified competition from Asia, and lower production and sales of carbon fiber products. These impacts have been partially offset by various cost savings initiatives. The global electronics market conditions also affected the performance of the company's joint ventures in Europe and Japan, reducing the amount of equity income that the company recognized. Adjusted EBITDA (earnings before business acquisition and consolidation expenses, interest, taxes, depreciation, amortization, and equity in earnings of affiliated companies) for the second quarter of 1999 was $42.0 million, compared with $48.0 million for the comparable 1998 period. Pro forma second quarter 1998 Adjusted EBITDA was $59.2 million. Second quarter 1999 results were impacted by the factors noted above. Commenting on Hexcel's second quarter results, John J. Lee, the company's chairman and chief executive officer said "Compared to the first quarter, the company's sales of composite materials to the commercial aerospace market were lower by about $20 million mainly due to efforts by Boeing and its subcontractors to adjust inventories and procurement in anticipation of lower aircraft production in 2000. In addition, excess supply in the carbon fiber industry made it difficult for the company to sell its surplus capacity. On a positive note, the prices for our electronic products have been relatively stable during the quarter after the reductions seen in the first quarter of 1999. Nevertheless, taken together, these factors have resulted in weaker performance this quarter than we originally estimated." "In these current market conditions," Mr. Lee continued, "Hexcel remains committed to improving performance by continuing to reduce costs and increase productivity through our business consolidation, global procurement and Lean Enterprise initiatives." In the second quarter, Hexcel recorded $1.4 million of business acquisition and consolidation expenses, primarily for employee severance costs for administrative positions. The company also expects to record a further charge of $1.2 million relating to the closing of its Cleveland, Georgia plant, which is expected to be completed in the third quarter of 1999. Benefits from these initiatives are helping to offset some of the impact of lower prices and sales volumes. Commenting on Hexcel's progress in repaying debt, Mr. Lee said, "Despite our current market conditions, we are making good progress in generating cash to repay debt through better management of working capital and capital expenditures. Our free cash flow for the quarter enabled us to repay $24 million of debt, or $4 million greater than the high end of our earlier second quarter estimates. Our primary areas of short term focus continue to be the reduction of costs and the generation of free cash flow to repay debt over the balance of 1999." Commenting on the medium term outlook, Mr. Lee concluded, "While Hexcel today continues to contend with the cyclical impact of the Asian economic crisis on its commercial aerospace and electronics businesses, we remain confident of the longer term potential of these markets. The reported improvements in the non-Japanese Asian economies establish the foundation for a future upturn in demand as these global industries return to growth. Meanwhile, a number of new US and European military aircraft programs continue to move towards full scale production starting as early as late 2000."
YEAR-TO-DATE RESULTS -------------------------------------------------------------------------------------------------------------- Year-to-Date Ended June 30, Pro Forma (In millions, except per share data) 1999 1998 1998 -------------------------------------------------------------------------------------------------------------- Net sales $ 608.9 $ 642.0 $ 530.3 Gross margin % 22.5% 25.5% 25.9% Adjusted operating income % 9.2% 13.5% 13.6% Adjusted EBITDA $ 87.6 $ 116.7 $ 91.8 Business acquisition & consolidation expense $ 4.2 $ - $ - Net income $ 9.5 $ 38.3 $ 37.0 Adjusted net income $ 12.2 $ 38.3 $ 37.0 -------------------------------------------------------------------------------------------------------------- Diluted earnings per share $ 0.26 $ 0.89 $ 0.86 Adjusted diluted earnings per share $ 0.33 $ 0.89 $ 0.86 --------------------------------------------------------------------------------------------------------------
Hexcel's net income for the six months ended June 30, 1999 was $9.5 million, or $0.26 per diluted share. This compares with net income of $37.0 million, or $0.86 per diluted share for the first half of 1998. Excluding business acquisition and consolidation expenses of $4.2 million, net income for the first half of 1999 was $0.33 per diluted share. Net sales and gross margin for the first half of 1999 were $608.9 million and 22.5% of sales, respectively, compared with $530.3 million and 25.9% of sales, respectively, for the comparable 1998 period. Changes in foreign exchange rates did not have any significant effect on these comparisons. Adjusted EBITDA for the first half of 1999 was $87.6 million, compared with $91.8 million for the same period last year. Pro forma net sales and gross margin for the comparable 1998 period were $642.0 million and 25.5%, respectively, and pro forma Adjusted EBITDA was $116.7 million. The reduction in 1999 year-to-date results were caused by the same factors as those described earlier for the second quarter results. * * * 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, general industrial and recreational 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, free cash flow, currency, build rates and government defense procurement budgets. 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, particularly in Asia, increased competition, product mix, currency and government procurement. 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.
HEXCEL CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - -------------------------------------------------------------------------------------------------------------------- Unaudited -------------------------------------------------------------- Quarter Ended June 30, Year-to-Date Ended June 30, (In millions, except per share data) 1999 1998 1999 1998 - -------------------------------------------------------------------------------------------------------------------- Net sales $ 292.7 $ 273.5 $ 608.9 $ 530.3 Cost of sales 226.4 202.3 471.8 393.0 - -------------------------------------------------------------------------------------------------------------------- Gross margin 66.3 71.2 137.1 137.3 Selling, general and administrative expenses 33.7 27.2 68.1 54.3 Research and technology expenses 6.3 5.9 12.8 11.1 Business acquisition and consolidation expenses 1.4 - 4.2 - - -------------------------------------------------------------------------------------------------------------------- Operating income 24.9 38.1 52.0 71.9 Interest expense 18.4 6.7 37.5 13.7 - -------------------------------------------------------------------------------------------------------------------- Income before income taxes 6.5 31.4 14.5 58.2 Provision for income taxes 2.3 11.4 5.1 21.2 Equity in earnings of affiliated companies 0.1 - 0.1 - - -------------------------------------------------------------------------------------------------------------------- Net income $ 4.3 $ 20.0 $ 9.5 $ 37.0 - -------------------------------------------------------------------------------------------------------------------- Net income per share: Basic $ 0.12 $ 0.54 $ 0.26 $ 1.00 Diluted 0.12 0.46 0.26 0.86 Weighted average shares: Basic 36.5 36.9 36.4 36.9 Diluted 36.6 46.5 36.5 46.4 - -------------------------------------------------------------------------------------------------------------------- The Company's convertible subordinated notes, due 2003, and its convertible subordinated debentures, due 2011, were excluded from the 1999 computations of diluted net income per share, as they were antidilutive.
HEXCEL CORPORATION AND SUBSIDIARIES NET SALES TO THIRD-PARTY CUSTOMERS BY PRODUCT GROUP AND MARKET SEGMENT - -------------------------------- ----------------------------------------------------------------------------------- Unaudited ----------------------------------------------------------------------------------- Commercial Space & General (In Millions) Aerospace Defense Electronics Industrial Recreation Total - -------------------------------------------------------------------------------------------------------------------- SECOND QUARTER 1999 NET SALES Reinforcement products $ 13.4 $ 5.5 $ 42.2 $ 20.9 $ 1.2 $ 83.2 Composite materials 101.8 24.4 - 17.7 12.3 156.2 Engineered products 48.6 3.4 - 1.3 - 53.3 - -------------------------------------------------------------------------------------------------------------------- Total $ 163.8 $ 33.3 $ 42.2 $ 39.9 $ 13.5 $ 292.7 56% 11% 14% 14% 5% 100% - -------------------------------------------------------------------------------------------------------------------- FIRST QUARTER 1999 NET SALES Reinforcement products $ 11.7 $ 5.5 $ 42.3 $ 21.5 $ 4.8 $ 85.8 Composite materials 122.4 27.5 - 18.3 9.0 177.2 Engineered products 48.9 3.3 - 1.0 - 53.2 - -------------------------------------------------------------------------------------------------------------------- Total $ 183.0 $ 36.3 $ 42.3 $ 40.8 $ 13.8 $ 316.2 58% 11% 13% 13% 5% 100% - -------------------------------------------------------------------------------------------------------------------- PRO FORMA SECOND QUARTER 1998 NET SALES Reinforcement products $ 13.0 $ 7.4 $ 45.4 $ 27.6 $ 4.2 $ 97.6 Composite Materials 122.9 22.9 - 12.6 12.2 170.6 Engineered Products 53.3 2.3 - 1.0 - 56.6 - -------------------------------------------------------------------------------------------------------------------- Total $ 189.2 $ 32.6 $ 45.4 $ 41.2 $ 16.4 $ 324.8 58% 10% 14% 13% 5% 100% - -------------------------------------------------------------------------------------------------------------------- SEGMENT DATA - -------------------------------------------------------------------------------------------------------------------- Unaudited ------------------------------------------------------------------------------ Reinforcement Composite Engineered Corporate (In Millions) Products Materials Products & Other(1) Total - -------------------------------------------------------------------------------------------------------------------- Second Quarter 1999 - -------------------------------------------------------------------------------------------------------------------- Net sales to external customers $ 83.2 $ 156.2 $ 53.3 $ - $ 292.7 Intersegment sales 31.0 1.8 - - 32.8 - -------------------------------------------------------------------------------------------------------------------- Total sales 114.2 158.0 53.3 - 325.5 Adjusted EBIT(2) 11.2 19.8 3.6 (8.4) 26.2 Depreciation and amortization 8.9 5.0 1.0 0.9 15.8 Capital expenditures 3.2 3.8 1.4 0.1 8.5 - -------------------------------------------------------------------------------------------------------------------- FIRST QUARTER 1999 - -------------------------------------------------------------------------------------------------------------------- Net sales to external customers 85.8 177.2 53.2 - 316.2 Intersegment sales 35.7 2.8 - - 38.5 - -------------------------------------------------------------------------------------------------------------------- Total sales 121.5 180.0 53.2 - 354.7 Adjusted EBIT 10.3 26.4 2.6 (9.3) 30.0 Depreciation and amortization 8.9 5.0 1.0 0.7 15.6 Capital expenditures 4.2 3.5 1.6 0.1 9.4 - -------------------------------------------------------------------------------------------------------------------- PRO FORMA SECOND QUARTER 1998 - -------------------------------------------------------------------------------------------------------------------- Net sales to external customers 97.6 170.6 56.6 - 324.8 Intersegment sales 35.1 3.2 - - 38.3 - -------------------------------------------------------------------------------------------------------------------- Total sales 132.7 173.8 56.6 - 363.1 Adjusted EBIT 22.0 23.1 5.5 (6.2) 44.4 Depreciation and amortization 8.8 4.3 0.9 0.8 14.8 Capital expenditures 5.8 8.8 2.0 1.0 17.6 - -------------------------------------------------------------------------------------------------------------------- - ------------- 1 The company does not allocate corporate expenses to its business segments. 2 Consists of earnings before interest, taxes, and business acquisition and consolidation expenses.
HEXCEL CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS - -------------------------------------------------------------------------------------------------------------------- Unaudited -------------------------------------------- June 30, December 31, (In millions, except per share data) 1999 1998 - -------------------------------------------------------------------------------------------------------------------- ASSETS Current assets: Cash and cash equivalents $ 5.7 $ 7.5 Accounts receivable 191.5 188.4 Inventories 201.0 213.2 Prepaid expenses and other assets 5.8 10.1 Deferred tax asset 22.0 19.8 - -------------------------------------------------------------------------------------------------------------------- Total current assets 426.0 439.0 Property, plant and equipment 618.0 628.5 Less accumulated depreciation (207.9) (195.9) - -------------------------------------------------------------------------------------------------------------------- Net property, plant and equipment 410.1 432.6 Goodwill and other purchased intangibles, net of accumulated amortization of $18.2 in 1999 and $11.7 in 1998 417.8 425.4 Investment in affiliated companies and other assets 115.9 107.2 - -------------------------------------------------------------------------------------------------------------------- Total assets $ 1,369.8 $ 1,404.2 - -------------------------------------------------------------------------------------------------------------------- LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Notes payable and current maturities of capital lease obligations $ 29.5 $ 26.9 Accounts payable 85.8 81.8 Accrued liabilities 102.9 110.7 - -------------------------------------------------------------------------------------------------------------------- Total current liabilities 218.2 219.4 Long-term notes payable and capital lease obligations 784.8 802.4 Indebtedness to related parties 23.9 35.7 Other non-current liabilities 42.7 44.3 - -------------------------------------------------------------------------------------------------------------------- Total liabilities 1,069.6 1,101.8 Stockholders' equity: Preferred stock, no par value, 20.0 stock authorized, no stock issued or outstanding in 1999 and 1998 - - Common stock, $0.01 par value, 100.0 stock authorized, stock issued and outstanding of 37.2 in 1999 and 1998 0.4 0.4 Additional paid-in capital 272.6 271.5 Retained earnings 44.4 34.9 Accumulated other comprehensive income (loss) (6.5) 6.3 - -------------------------------------------------------------------------------------------------------------------- 310.9 313.1 Less- treasury stock, at cost, 0.8 stock in 1999 and 1998 (10.7) (10.7) - -------------------------------------------------------------------------------------------------------------------- Total stockholders' equity 300.2 302.4 - -------------------------------------------------------------------------------------------------------------------- Total liabilities and stockholders' equity $ 1,369.8 $ 1,404.2 - -------------------------------------------------------------------------------------------------------------------- Total debt, net of cash $ 832.5 $ 857.5 - --------------------------------------------------------------------------------------------------------------------
HEXCEL CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - --------------------------------------------------------------------------------------------------------------------- Unaudited -------------------------------------------- Year-to-Date Ended June 30, (In millions) 1999 1998 - --------------------------------------------------------------------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 9.5 $ 37.0 Reconciliation to net cash provided (used) by operations: Depreciation and amortization 31.5 19.9 Deferred income taxes (1.9) 7.3 Accrued business acquisition and consolidation expenses 4.2 - Business acquisition and consolidation payments (6.6) (3.1) Working capital changes and other 11.4 (38.2) - --------------------------------------------------------------------------------------------------------------------- Net cash provided by operating activities 48.1 22.9 - --------------------------------------------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (18.0) (27.3) Advances to affiliated companies - (0.8) - --------------------------------------------------------------------------------------------------------------------- Net cash used by investing activities (18.0) (28.1) - --------------------------------------------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES Repayments of credit facilities, net (247.3) (2.5) Proceeds from long-term debt and capital lease obligations, net 224.8 2.4 Debt issuance costs (9.5) - Activity under stock plans 0.7 2.4 - --------------------------------------------------------------------------------------------------------------------- Net cash provided (used) by financing activities (31.3) 2.3 - --------------------------------------------------------------------------------------------------------------------- Effect of exchange rate changes on cash and cash equivalents (0.6) 0.9 - --------------------------------------------------------------------------------------------------------------------- Net decrease in cash and cash equivalents (1.8) (2.0) Cash and cash equivalents at beginning of year 7.5 9.0 - --------------------------------------------------------------------------------------------------------------------- Cash and cash equivalents at end of period $ 5.7 $ 7.0 - ---------------------------------------------------------------------------------------------------------------------
EX-99 3 EXHIBIT 99.2 - PRESS RELEASE EXHIBIT 99.2 NEWS RELEASE Hexcel Corporation, 281 Tresser Boulevard, Stamford, CT 06901 (203) 969-0666 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 CORPORATION SUCCESSFULLY COMPLETES EXCHANGE OFFER STAMFORD, CT, July 19, 1999 - Hexcel Corporation (NYSE/PCX: HXL) announced today that its offer to exchange its outstanding 9 3/4% Senior Subordinated Notes due 2009, which were sold under Rule 144A of the Securities Act of 1933, for a like principal amount of new 9 3/4% Senior Subordinated Notes due 2009, which have been registered under the Securities Act of 1933, expired at 5:00 p.m. Eastern Daylight Time on July 19, 1999. Hexcel has accepted for exchange all old notes validly tendered pursuant to that exchange offer. According to the exchange agent for the exchange offer, holders tendered for exchange $240,000,000 in aggregate principal amount of the old notes as of the expiration of the exchange offer. The old notes tendered for exchange constitute 100% of the old notes outstanding on the date the exchange offer was launched. The new notes are scheduled to be issued July 20, 1999 to holders whose securities have been validly tendered and accepted for exchange pursuant to the terms of the exchange offer. 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. # -----END PRIVACY-ENHANCED MESSAGE-----