EX-99.2 3 a5525682ex99_2.txt EXHIBIT 99.2 Exhibit 99.2 Investor Information -------------------------------------------------------------------------------- Hexcel Corporation, 281 Tresser Boulevard, Stamford, CT 06901 (203) 969-0666 -------------------------------------------------------------------------------- October 22, 2007 Reclassified 2006 Historical Statements of Operations Hexcel Corporation has reclassified its historical statements of operations for the quarterly periods of 2006 and 2007. The reclassified statements reflect the first quarter 2007 sale of its Architectural business in France and third quarter 2007 sale of the assets of its U.S. Electronics, Ballistics & General Industrial reinforcement product lines ("EBGI") as discontinued operations. The attached supplemental schedule presents the reclassified results from Hexcel's continuing operations for the four quarters of 2006 and the first quarter of 2007, as well as the actual results for the second and third quarters of 2007. 1
Hexcel Corporation Statement of Continuing Operations Quarterly Summary ($in millions) =========================================================================================================================== Quarter-to-Date Year-to-Date ---------------------------------------------------- --------------------------------------- March 31, June 30, September 30, December 31, June 30, September 30, December 31, 2006 2006 2006 2006 2006 2006 2006 ---------------------------------------------------- --------------------------------------- Net sales $ 260.3 $ 274.0 $ 252.3 $ 262.9 $ 534.3 $ 786.6 $ 1,049.5 Cost of sales 195.7 206.5 195.0 203.8 402.2 597.2 801.0 ---------------------------------------------------- --------------------------------------- Gross margin 64.6 67.5 57.3 59.1 132.1 189.4 248.5 % Gross margin 24.8% 24.6% 22.7% 22.5% 24.7% 24.1% 23.7% Selling, general and administrative (a) 28.1 25.9 26.1 25.4 54.0 80.1 105.5 Research and technology expenses 7.5 7.4 6.8 8.0 14.9 21.7 29.7 Business consolidation and restructuring expenses 0.9 0.3 0.5 8.2 1.2 1.7 9.9 ---------------------------------------------------- --------------------------------------- Operating income 28.1 33.9 23.9 17.5 62.0 85.9 103.4 % Operating margin 10.8% 12.4% 9.5% 6.7% 11.6% 10.9% 9.9% Interest expense, net 6.7 6.1 5.7 5.1 12.8 18.5 23.6 Non-operating (income) expense, net - - - (15.6) - - (15.6) ---------------------------------------------------- --------------------------------------- Income from continuing operations before income taxes, equity in earnings and discontinued operations 21.4 27.8 18.2 28.0 49.2 67.4 95.4 Provision for income taxes 8.5 10.9 4.0 11.3 19.4 23.4 34.7 ---------------------------------------------------- --------------------------------------- Income from continuing operations before equity in earnings and discontinued operations 12.9 16.9 14.2 16.7 29.8 44.0 60.7 Equity in earnings of investments in affiliated companies 1.1 1.1 1.0 1.0 2.2 3.2 4.2 ---------------------------------------------------- --------------------------------------- Net income from continuing operations 14.0 18.0 15.2 17.7 32.0 47.2 64.9 Income from discontinued operations, net of tax 0.5 (0.4) 0.5 0.4 0.1 0.6 1.0 Net income $ 14.5 $ 17.6 $ 15.7 $ 18.1 $ 32.1 $ 47.8 $ 65.9 ==================================================== ======================================= --------------------------------------------------------------------------------------------------------------------------- Depreciation and amortization $ 9.2 $ 9.3 $ 9.0 $ 10.0 $ 18.5 $ 27.5 $ 37.5 Stock-based compensation 3.0 2.3 1.6 1.4 5.3 6.9 8.3 Capital expenditures & deposits for property purchases 24.1 26.2 31.5 36.1 50.3 81.8 117.9 -------------------------------------------------------------------------------------------------------------------------- Basic net income per common share: Continuing Operations $ 0.15 $ 0.19 $ 0.16 $ 0.19 $ 0.34 $ 0.50 $ 0.70 Discontinued Operations 0.01 - 0.01 - - 0.01 0.01 ---------------------------------------------------- --------------------------------------- Net income $ 0.16 $ 0.19 $ 0.17 $ 0.19 $ 0.34 $ 0.51 $ 0.71 Diluted net income per common share: Continuing Operations $ 0.15 $ 0.19 $ 0.16 $ 0.19 $ 0.34 $ 0.50 $ 0.68 Discontinued Operations - (0.01) - - - - 0.01 ---------------------------------------------------- --------------------------------------- Net income $ 0.15 $ 0.18 $ 0.16 $ 0.19 $ 0.34 $ 0.50 $ 0.69 Weighted average common shares outstanding: Basic 92.9 93.4 93.7 93.7 93.2 93.3 93.4 Diluted 95.1 95.5 95.2 95.6 95.4 95.4 95.5 --------------------------------------------------------------------------------------------------------------------------- Notes: (a) During the third quarter of 2007 the company reclassified environmental costs of $2.0 million, incurred during the third quarter of 2006 originally classified as cost of sales, to operating expense. The purpose of this reclassification is to conform the prior period amounts to the 2007 presentation.
Hexcel Corporation Statement of Continuing Operations Quarterly Summary ($in millions) ================================================================================================================= Quarter-to-Date Year-to-Date --------------------------------------- ---------------------- March 31, June 30, September June 30, September 2007 2007 30, 2007 2007 30, 2007 --------------------------------------- ---------------------- Net sales $ 282.6 $ 289.8 $ 281.1 $ 572.4 $ 853.4 Cost of sales 211.1 219.4 214.2 430.5 644.6 --------------------------------------- ---------------------- Gross margin 71.5 70.4 66.9 141.9 208.8 % Gross margin 25.3% 24.3% 23.8% 24.8% 24.5% Selling, general and administrative (a) 31.0 27.4 26.4 58.4 84.8 Research and technology expenses 9.5 8.5 7.7 18.0 25.7 Business consolidation and restructuring expenses 1.1 0.5 2.6 1.6 4.1 --------------------------------------- ---------------------- Operating income 29.9 34.0 30.2 63.9 94.2 % Operating margin 10.6% 11.7% 10.7% 11.2% 11.0% Interest expense, net 5.7 6.0 5.3 11.7 16.9 Non-operating (income) expense, net 0.4 - 0.5 0.4 1.0 --------------------------------------- ---------------------- Income from continuing operations before income taxes, equity in earnings and discontinued operations 23.8 28.0 24.4 51.8 76.3 Provision for income taxes 10.0 11.9 7.2 21.9 29.1 --------------------------------------- ---------------------- Income from continuing operations before equity in earnings and discontinued operations 13.8 16.1 17.2 29.9 47.2 Equity in earnings of investments in affiliated companies 1.0 1.4 0.9 2.4 3.2 --------------------------------------- ---------------------- Net income from continuing operations 14.8 17.5 18.1 32.3 50.4 Income from discontinued operations, net of tax 8.7 (8.7) (0.8) - (0.9) Net income $ 23.5 $ 8.8 $ 17.3 $ 32.3 $ 49.5 ======================================= ====================== ----------------------------------------------------------------------------------------------------------------- Depreciation and amortization $ 9.7 $ 9.9 $ 10.2 $ 19.6 $ 29.8 Stock-based compensation 4.8 1.9 1.4 6.7 8.1 Capital expenditures & deposits for property purchases 15.6 30.5 25.3 46.1 71.5 ----------------------------------------------------------------------------------------------------------------- Basic net income per common share: Continuing Operations $ 0.16 $ 0.18 $ 0.19 $ 0.34 $ 0.53 Discontinued Operations 0.09 (0.09) (0.01) - (0.01) --------------------------------------- ---------------------- Net income $ 0.25 $ 0.09 $ 0.18 $ 0.34 $ 0.52 Diluted net income per common share: Continuing Operations $ 0.15 $ 0.18 $ 0.19 $ 0.33 $ 0.52 Discontinued Operations 0.09 (0.09) (0.01) - (0.01) --------------------------------------- ---------------------- Net income $ 0.24 $ 0.09 $ 0.18 $ 0.33 $ 0.51 Weighted average common shares outstanding: Basic 94.0 94.4 94.9 94.4 94.4 Diluted 96.1 96.3 96.7 96.3 96.2 ----------------------------------------------------------------------------------------------------------------- Notes: (a) During the third quarter of 2007 the company reclassified environmental costs of $2.0 million, incurred during the third quarter of 2006 originally classified as cost of sales, to operating expense. The purpose of this reclassification is to conform the prior period amounts to the 2007 presentation.
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