STOCKHOLM (Reuters) – Hexagon AB said on Thursday that total demand was strong while supply of certain components was strained, after the industrial technology group reported quarterly results in line with market expectations.
The Swedish manufacturer of measuring and positioning systems and software said that they had seen continued strong demand in measurement, mining, infrastructure and construction.
Hexagon reported a comparable sales increase of 10% with China, mainly driven by continued strong demand in manufacturing and in Europe, the Middle East and Africa, the company’s largest region in terms of sales, both with growth of 10%.
CEO Ola Rollen said that with an unlimited supply, the company would have increased sales by another 2%.
“We believe we will see a similar situation in the fourth quarter, with a further increase in the order backlog, but envisage a gradual improvement in component supply during the first half of 2022,” he said in a statement.
Hexagon’s adjusted operating profit (EBIT) for the third quarter rose to EUR 297 million (USD 344.5 million) from EUR 250 million a year earlier, matching an average analyst forecast of EUR 297 million in a Refinitive survey.
Hexagon’s sensors and software are used for measurement and quality control in manufacturing processes and construction of technical facilities, as well as in infrastructure planning, construction, mining, agriculture and energy.
(1 USD = 0.8621 euro)
(Report by Helena Söderpalm; edited by Niklas Pollard)