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Hexcel Corporation (HXL). George Bocchetti Zachary Perconti. Hexcel Corporation. Our recommendation: Yay. Hexcel Corporation: Background. Hexcel is an advanced composites company 1 Two segments: Composite Materials and Engineered Products 1
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Hexcel Corporation (HXL) George Bocchetti Zachary Perconti
Hexcel Corporation • Our recommendation: Yay
Hexcel Corporation: Background • Hexcel is an advanced composites company1 • Two segments: Composite Materials and Engineered Products1 • Manufacturing facilities and sales offices in the United States, Asia Pacific and Europe1 • Incorporated in 19482 • Headquarters in Stamford, Connecticut1
Hexcel Corporation: What They Do • Hexcel develops, manufactures and markets lightweight, high-performance composites, including carbon fibers, reinforcements, honeycomb, matrix systems, adhesives and composite structures1 • Used in commercial aerospace, space and defense, and industry1 • Variety of end applications: commercial and military aircraft, space launch vehicles and satellites, wind turbine blades, automotive, bikes, skis1
Hexcel Corporation: Basic Numbers • Current Price: $8.94 • P/E Ratio: 7.85 • Beta: 1.60 • EPS: 1.14 • 52-Week Low: $4.49 • 52-Week High: $26.73 • Market Cap: 862.85M • Institutional Ownership: 92% Taken from http://www.google.com/finance?q=NYSE%3AHXL
Hexcel Corporation:Earnings Report • Q4 and year-end 20083 • Released Jan 21, 20091 • Yearly net sales up 13.9 percent3 • Quarterly EPS Estimate: $0.1394 • Quarterly EPS Actual: $0.163 • Compared to $0.20 in 20073 • Earnings reflect Boeing Worker’s strike3
Hexcel Corporation:Reasons to Buy • Largest US producer of carbon fiber5 • Beat analysts’ estimates despite Boeing strike • Building new plant in Windsor, Colorado6 • Near Vestas facility that manufactures wind turbines6 • At the moment, few sales to automotive industry—room for huge expansion • Beginning to see very efficient cars that use composites and honeycomb
Hexcel Corporation:More Reasons to Buy • Supplies both Airbus and Boeing7 • Almost all production of more efficient aircraft will be done with Hexcel products • Products have wide range of uses • Low in cycle due to Boeing strike • Strike is over, so earnings should increase
Hexcel Corporation:Recession Stock • Operations in 12 different countries, including China8 • Products are vital to movement for energy efficiency • Can build machines that are lighter, stronger, and more efficient • Building new plant • One of the few companies hiring now9 • Wide range of talent to pick from9
Hexcel Corporation:Competitors • GrafTek (GTI) • Not as diversified10 • No Asia markets11 • Zoltek Companies (ZOLT) • Not as diversified12 • PE of 49.8412 • Released unfavorable earnings for Q1, without influence from Boeing strike13
Citations • http://www.google.com/finance?q=NYSE%3AHXL • http://www.hexcel.com/About/Timeline/ • http://www.marketwatch.com/news/story/hexcel-reports-2008-fourth-quarter/story.aspx?guid={751DD7E6-6D9B-49FF-82D8-EC44F1F24304}&dist=msr_1 • http://finance.aol.com/earnings/hexcel-corporation/hxl/nys/earnings-release • http://www.hexcel.com/about/ • http://www.coloradoan.com/article/20090219/WINDSORBEACON01/90218037/1131 • http://www.reuters.com/finance/stocks/keyDevelopments?symbol=HXL.N&rpc=66×tamp=20090121220300 • http://www.hexcel.com/about/locations/ • http://www.greeleytribune.com/article/20090318/NEWS/903179864/1002/NONE&parentprofile=1001&title=Hexcel%20job%20fair%20draws%20eager%20crowd • http://www.google.com/finance?q=gti • http://www.graftech.com/CAREER-CENTER/Locations.aspx • http://www.google.com/finance?q=zolt • http://www.rttnews.com/ArticleView.aspx?Id=849334&SMap=1