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
March 29, 1999 (March 26, 1999)
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Date of report (Date of earliest event reported)
Hexcel Corporation
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(Exact Name of Registrant as Specified in Charter)
Delaware 1-8472 94-1109521
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(State of (Commission File No.) (IRS Employer
Incorporation) Identification No.)
Two Stamford Plaza
281 Tresser Boulevard
Stamford, Connecticut 06901-3238
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(Address of Principal Executive Offices and Zip Code)
(203) 969-0666
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(Registrant's telephone number, including area code)
N/A
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(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 March 26, 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 March 26,
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: March 29, 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 March 26,
1999
Exhibit 99.1
Contacts Investors:
Stephen C. Forsyth
203-969-0666 ext. 425
[email protected]
Media:
Ronald S. Ziemba
203-969-0666 ext. 405
[email protected]
HEXCEL UPDATES 1999 FIRST QUARTER OUTLOOK
STAMFORD, CT, March 26, 1999 Hexcel Corporation (NYSE/PCX: HXL) today
provided guidance on the anticipated performance of its business in the
first quarter of 1999.
Mr. John Lee, Chairman & CEO advised "During the quarter, demand in most
of the markets Hexcel serves, including commercial aerospace, has been in
line with our expectations. In addition, we have continued to make
progress in our business consolidation and integration action plans.
However, competitive conditions in the global market for electronic
fiberglass materials have remained intense, impacting sales volumes and
margins to a greater extent than we previously expected. As a result, we
now anticipate that the company's net sales for the quarter will be in the
range of $305 to $315 million with gross margins in the range of 21% to
22% of net sales. This is expected to result in Adjusted EBITDA (earnings
before interest expense, taxes, depreciation, amortization and business
acquisition and consolidation expenses) for the quarter of between $42 and
$45 million."
Mr. Lee continued "Electronic market competitive conditions resulting from
the Asian economic situation are also impacting the performance of our
joint venture companies in Europe and Japan, reducing the amount of equity
income that we recognize for these joint ventures in our financial
statements. This impact, combined with lower than anticipated operating
profitability, is anticipated to result in Adjusted Diluted EPS (diluted
earnings per share excluding business acquisition and consolidation
expenses) in the range of $0.13 to $0.18 per share for the quarter."
During the quarter, Hexcel has continued the consolidation and integration
of its global reinforcement materials operations. On March 16, 1999,
Hexcel expanded these actions, announcing its plan to close its Cleveland,
Georgia manufacturing facility. As a result, the company anticipates
recording in its first quarter financial statements about $3 million of
business acquisition and consolidation charges primarily reflecting the
costs of closing this facility, of which $1.8 million will be non-cash
charges. These first quarter of 1999 charges will equate to about $0.05
per diluted share. A further charge related to this plant closure of about
$1 million is anticipated in the second and/or third quarter of 1999.
In concluding, Mr. Lee noted "Hexcel remains focused on improving
performance by continuing to reduce costs and improving productivity
through our Lean Enterprise initiatives. We have substantially completed
the business consolidation actions we announced in the fourth quarter of
1998 and continue to seek further opportunities to eliminate cost. We
remain targeted on achieving Adjusted Diluted EPS of at least $1.00 per
share in 1999."
Hexcel expects to report the results of its first quarter of 1999 on the
evening of Tuesday, April 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, EBITDA,
diluted earnings per share, and expenses associated with business
acquisition and consolidation programs. 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 and Europe, 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.
