8-K

UNITED STATES

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

December 6, 2007	(December 6, 2007)
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 Incorporation)	(Commission File No.)	(IRS Employer 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)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written Communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 7 – Regulation FD

Item 7.01 Regulation FD Disclosure.

On December 6, 2007, Hexcel issued a press release discussing its guidance for 2008 and its outlook for the future. A copy of this press release is being furnished as Exhibit 99.1 and is incorporated herein by reference.

On December 6, 2007, Hexcel held an investors conference in New York City. Prior to the presentation, Hexcel posted certain information to be presented at the conference on its website. This information is being furnished as Exhibit 99.2 and is incorporated herein by reference, and can be viewed in the presentations area in the investor relations section of Hexcel’s web site, www.hexcel.com.

Section 9 – Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits.

(d)	Exhibits
	99.1	Press Release issued by Hexcel on December 6, 2007
	99.2	Selected information presented at investor conference on December 6, 2007

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Signature

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.

	HEXCEL CORPORATION
December 6, 2007
	/s/ Wayne C. Pensky
	Wayne C. Pensky
	Senior Vice President and Chief
	Financial Officer

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Exhibit Index

Exhibit No.	Description
99.1	Press Release issued by Hexcel on December 6, 2007
99.2	Selected information presented at investor conference on December 6, 2007

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EX-99.1

Exhibit 99.1

News Release

Hexcel Corporation, 281 Tresser Boulevard, Stamford, CT 06901 (203) 969-0666

HEXCEL OUTLOOK

STAMFORD, CT. December 6, 2007 – Hexcel Corporation (NYSE: HXL), today discussed its guidance for 2008 and outlook for the future.

Chief Executive Officer Comments

Mr. David Berges summarizing Hexcel’s prospects commented, “For 2008 we see the continuation of growth in all of our core markets and an increasing significance of Airbus A380 and Boeing 787 sales. We expect our fifth year in a row of double digit sales growth led by commercial aerospace and wind energy markets. Global demand is lifting build rates for aircraft and wind turbines and we believe that this trend will continue for the foreseeable future. In addition, the ramp-ups for the Airbus A380 and Boeing 787 programs accelerate the secular penetration story for composites in commercial aerospace.”

“We expect that we will achieve our margin targets for 2007 and the sales growth will lead to an increased rate of operating margin and earnings expansion in 2008. Our expectations are for an improvement of about 100 basis points in operating margin in 2008 despite continued cost pressures from high oil costs and unfavorable foreign exchange rates.”

“Our 2007 sale of non-core reinforcements businesses both improved our prospects for consistent growth and helped put our balance sheet in the best shape it has been in for years. Entering 2008, we expect debt to be less than two times EBITDA and we expect our capital investment program to be funded from operations.”

Revenue

•Commercial Aerospace. With continued increases in aircraft production and the contribution of A380 and B787 ramp up, total 2008 commercial aerospace revenues are projected to grow in the range of 12% - 15% as compared to 2007. At currently projected build rates, the A380 and B787 programs could contribute over $200 million more in revenues to Hexcel in 2010 than 2007. Combined with industry projections of other aircraft build increases, the three year revenue trend for Airbus and Boeing programs could result in average revenue growth in the high-teens for the three year period.

•Space & Defense. We expect our Space & Defense revenues to maintain their long term growth trend of 8%-10% per year. A key driver near term will be continued strong growth in rotor craft, particularly the ramp-up of the V-22 Osprey. It is hoped that sales to the new A400M transport will offset the possible decline of the C-17 program. Longer term, the F-35 Joint Strike Fighter program will be a key growth contributor.

•Industrial. Led by the continued strong growth in wind energy revenues, industrial sales growth should return to the mid-teens. After a year of portfolio pruning in “other industrial” and a weak year of recreational sales, non-wind related sales will show some modest improvement. Longer term, we expect continued growth of wind energy as well as the addition of over $40 million per year in new material sales for the American Centrifuge Program and other new industrial opportunities by 2010.

•Consolidated Revenues. In total we anticipate 2008 consolidated revenues to grow in a range of 10%-15% year-on-year, assuming the average Euro and British pound exchange rates in 2008 are comparable to 2007. Based on our current mix of sales, while a weaker US dollar would inflate

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revenues, operating income would not increase, and as a result, margin percentages would compress.

Operating Margin

•We should see continued improvement in operating margin percentage through leverage on incremental sales, productivity gains, cost reductions, increased pricing and carbon fiber expansion. These improvements will be partially offset by the continuing cost pressures from the collateral impact of oil costs and the weak dollar. In 2008, our target operating margin is 12-12.5% of sales, which will be an improvement of about 100 basis points from 2007 levels (excluding business consolidation and restructuring expenses). However, we expect first quarter operating margin to be slightly lower than the 2008 average due to the start-up activities at our new manufacturing facilities and the usual timing associated with our stock compensation expense. Included within our 2008 operating margin assumptions is an $8-$10 million increase in depreciation expense from 2007 levels.

Diluted EPS

•We expect 2008 earnings per share to be in the range of $0.90 to $0.95, excluding any possible impact from non-recurring items. For example, the previously disclosed settlement expense for the termination of the US defined pension plan (about $0.08 per share), will primarily be recorded in the fourth quarter of 2007, but we expect about $0.02 of this charge to occur in early 2008. This EPS estimate is based upon an implied tax rate of 38% for the year and an estimated diluted share count of 97.5-98.5 million. Hexcel’s effective tax rate is sensitive to the mix of taxable income from its U.S. and European operations and the volatility inherent in FIN 48.

Cash Flows

•Capital expenditures are expected to be approximately $150 million as the company moves ahead with its previously announced expansion of carbon fiber production capacity. Cash flows from operations are expected to be sufficient to cover the capital spending plans. New program wins will determine future capital spending levels, but we currently expect $120-$150 million per year to be a pace that would support most growth scenarios for a number of years.

*****

Hexcel Corporation is a leading advanced structural materials company. It develops, manufactures and markets lightweight, high-performance structural materials, including carbon fibers, reinforcements, prepregs, honeycomb, matrix systems, adhesives and composite structures, used in commercial aerospace, space and defense and industrial applications.

*****

Disclaimer on Forward Looking Statements

This press release contains statements that are forward looking, including statements relating to anticipated trends in the market segments the Company serves (including increases in production of commercial aircraft, whether increased penetration of composites in aerospace will continue and the extent to which the Company will benefit from such increase, the growth in revenues from space & defense, wind energy and other industrial applications); the 2008 outlook for sales growth; depreciation expense; the estimated effective tax rate; the weighted average number of diluted shares outstanding; capital expenditures; the Company’s expectations for percentage operating margin; the Company’s ability to improve operating margin despite increases in oil related costs and weakness in the US dollar, which may be constrained by an inability to increase prices or offset rising costs. 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,

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product mix, inability to achieve planned manufacturing improvements and cost reductions, conditions in the financial markets and changes in currency exchange rates. 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.

Contact Information
Investors:	Media:
Wayne Pensky	Michael Bacal
(203) 969-0666 ext. 439	(203) 969-0666 ext. 426
wayne.pensky@hexcel.com	michael.bacal@hexcel.com

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EX-99.2

Exhibit 99.2

Hexcel 2007 Investor Meeting 2007 Review & 2008 Outlook December 6, 2007 Faster Lighter Stronger

Risks, Uncertainties and Other Factors with Respect to “Forward-Looking Statements” Certain statements contained in this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements that are not of historical fact constitute “forward-looking statements” and, accordingly, involve estimates, assumptions, judgments and uncertainties. There are a number of factors that could cause actual results or outcomes to differ materially from those addressed in the forward-looking statements. Such factors are detailed in the Forward Looking Statements and Risk Factors sections of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2006 and its 2007 Quarterly Reports on Form 10-Q and other documents filed with the Securities and Exchange Commission, including the press release issued today, December 6, 2007. Forward-Looking Statements

Delivering Results – How did we do? Amount is based on Non-GAAP measures (see Exhibit A&B) Amounts are LTM September 2007. Q4 2006 adjusted operating income was 9.9% Overall Solid Year – Record Sales and Operating Income for Continuing Operations 2007 Sales by Market: Commercial Aero stronger than expected due to the US. Space & Defense and Wind Energy about as expected. Other industrial sales low due to Euro winter, US capacity, portfolio pruning. $ millions 07 Target Actual Rates Constant FX Sales growth 5 - 10% ~11% ~7% Adj Operating Income % (a) 11 - 12% ~11.1% (b) ~11.4% (b) Net debt ~$300 to $320 07 Current Estimate ~$300 to $320 $ millions 07 Target Actual Rates Constant FX Sales Growth 5% - 10% ~11% ~7% Adj Operating Income % (a) 11% - 12% >11.1% (b) >11.4% (b) Net Debt $300 to $320 07 Current Estimate $300 to $320

Delivering Results Discontinued Operations masks some of the Growth in the Core Business Non-GAAP Measures (See Exhibit A & B) $- $20 $40 $60 $80 $100 $120 $140 2003 2004 2005 2006 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 2003 2004 2005 2006 What we looked like including discontinued operations thru 2006 Sales ($Billions) Non-GAAP Operating Income ($Millions)

Delivering Results We have replaced all the Operating Income from Sold Businesses Non-GAAP Measures (See Exhibit A & B) $- $20 $40 $60 $80 $100 $120 $140 2003 2004 2005 2006 2007 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 2003 2004 2005 2006 2007 Sales ($Billions) Non-GAAP Operating Income ($Millions) Discontinued Operations

Delivering Results Non-GAAP Measures (See Exhibit A & B) $- $20 $40 $60 $80 $100 $120 $140 2003 2004 2005 2006 2007 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 2003 2004 2005 2006 2007 Sales ($Billions) Non-GAAP Operating Income ($Millions) Discontinued Operations -44% -27% -14% -17% Continuing Operations 15% 14% 10% 11% 56% 45% 13% 12% Avg Annual Growth Rate >30% Avg Annual Growth Rate More Consistent Growth – Good Operating Leverage

Consolidated Revenues Anticipated to Grow in Range of 10 to 15% 2008 Estimated Revenues 2008 Revenue Outlook 10 to 15% Growth Space & Defense at long term growth trend of 8% - 10% annually Commercial Aero growth 12% – 15% A380 & B787 primary contributors 2008 Hexcel Revenue Outlook 54% 21% 25% Commercial Aerospace Space & Defense Industrial Wind leads overall growth of mid-teens. Recreation is expected to be flat, but other industrial sales return to growth after low ‘07 100% 2008 Est

2008 Outlook Continued robust growth in commercial aerospace and wind Still making investments in R&T, new product qualifications and start-up activities Q1 will have lowest OI%, due to start-up activities and stock compensation expense 2008 headwinds – weak dollar and the possible impact of oil at $100/barrel Continued margin expansion – expect 100 basis points improvement (a) Amount is based on Non-GAAP measures (see Exhibit A & B) (b) Amounts are LTM September 07. Q4 2006 adjusted operating income was 9.9% (c) EPS amounts are continuing operations and excludes non recurring items We Expect another Record Year for Sales & Operating Income A Return to the Growth and Operating Leverage Trend of pre-A380 delay $ millions, except EPS 07 Est 08 Target Sales Growth Rate ~11% ~10% - 15% Adj Operating Income % (a) >11.1% (b) ~12% - 12.5% Diluted EPS (c) ~$0.90 to $0.95 Net Debt $300 to $320 ~$300 to $320

2008 Currency Impact on Sales and Operating Income USD EUR, GBP & Other 2008 Sales by Currency For 2008, when US$ weakens by 5%: Sales UP $25 million OI DOWN $1.5 million OI% DOWN 30 basis pts 2009 exposure is ~30% hedged 2008 FX Variation Impact Hedging program in place to reduce earnings volatility Hedge up to 2.5 years out, using a declining range basis Impact from 2007 hedge rate to 2008 plan hedge rate is a reduction of operating income by approximately $4 million and a reduction of OI% by 40 basis points Weak Dollar = Sales Increase and Operating Income % Decrease ~ $75 million equivalent net cost position in € & £ Driven by Euro Aerospace ~ 60% of exposure for 2008 is hedged 2008 Operating Income 64% 36%

Capital Expenditure Requirements to Meet Growth Capex profile has changed dramatically over the years As Carbon Fiber Investments Ramp-up, Free Cash Flow will return Cash from Operations and Capex Trends Carbon Fiber Expansion Future direction of capex will depend upon new programs won Cash from operations $0 $50 $100 $150 $200 $250 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Capex

Continued Focus on Cash Flow Short Term Ratio Improvements will come from EBITDA Growth, Holding Debt Flat Productivity De-Leveraging No significant principal maturities due on debt until 2011 Benefited from $106 million (pretax) from asset sales in the last 15 months Cash provided from operating activities expected to cover capital expenditures Cash provided from operating activities will grow with revenues and margins Available borrowing capacity more than adequate to cover any shortfalls or timing issues 2008 Outlook 2001 2002 2003 2004 2005 2006 2007 $250 $300 $350 $400 $450 $500 $550 $600 $650 $700 $750 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net Debt 1x 2x 3x 4x 5x 6x 7x Leverage Ratio

Beyond 2008 – What could 2010 possibly look like? $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 $1.75 Sales in $ Billion 2004 Sales Base 2005 2006 2007 S&D Wind $1.7 B ? Other Industrial Boeing Airbus Other Space & Defense C17, F22 Future? A400M Delays? V-22 Success? Helicopter Dynamics? JSF? Wind Energy Capacity? Prepreg vs Infusion? Growth Rate? Customer Share? Other Industrial Base Growth? Will USEC Succeed? Another 2nd Wind? Commercial Aero A380/B787 Ramp-up? Other Build Rates? New Products? A350 Impact? 2010

Faster Lighter Stronger

Exhibit A Non-GAAP Measures – See Exhibit B for Reconciliation 2004, 2005, 2006, YTD Sept 07 & LTM Sept 07 Operating Leverage YTD Sept $ millions 2003 2004 04 vs. 03 2005 05 vs. 04 2006 06 vs. 05 YTD Sept 07 07 vs. 06 LTM Sept 07 B/(W) B/(W) B/(W) B/(W) Sales 730.0 $ 837.0 $ 107.0 $ 957.6 $ 120.6 $ 1,049.5 $ 91.9 $ 853.4 $ 66.8 $ 1,116.3 $ Gross Margin 152.6 189.1 36.5 224.2 35.1 248.5 24.3 208.8 19.4 267.9 % Gross Margin 20.9% 22.6% 34.1% 23.4% 29.1% 23.7% 26.4% 24.5% 29.0% 24.0% Adj. Operating Income (2) 45.1 65.2 20.1 101.8 36.6 115.5 13.7 98.3 9.5 124.0 % Adj Operating Inc 6.2% 7.8% 18.8% 10.6% 30.3% 11.0% 14.9% 11.5% 14.2% 11.1% Notes: (1) Excludes Architectural and EBGI businesses as they are now classified as discontinued operations (2) See Exhibit B for details of items excluded in computation of Adjusted Operating Income

Exhibit B Reconciles Non-GAAP Measures in Exhibit A Reconciliation of GAAP and Non-GAAP Measures LTM $ millions 2003 2004 2005 2006 Sept 06 Sept 07 Sept 07 GAAP Operating Income (1) 46.8 $ 62.1 $ 84.3 $ 103.4 $ 85.9 $ 94.2 $ 110.0 $ Business Consol & Restructuring Exp 3.9 2.5 2.9 9.9 1.7 4.1 14.0 Litigation Settlements/Legal Fees - 7.0 18.4 - - - Gain on Sale of Assets (2.2) (4.0) (1.4) - - - FAS 123R Expense (2) (3.4) (3.5) (3.4) - - - Transaction Costs (3) - 1.1 1.0 2.2 1.2 - Non-GAAP Operating Income 45.1 $ 65.2 $ 101.8 $ 115.5 $ 88.8 $ 98.3 $ 124.0 $ Note: (1) Excludes Architectural and EBGI businesses as now classified as discontinued operations (2)The Company adopted FAS 123R as of January 1, 2006. Prior years have been adjusted to reflect Fiscal Year Ending December 31 Nine Months ended (3) Costs for secondary filing and divestiture transaction costs stock compensation expense as if it was adopted on January 1, 2003.