July 13, 2020 / 4:41 PM / a month ago

Hexagon sees second quarter profit above market forecasts despite pandemic

STOCKHOLM (Reuters) - Industrial technology group Hexagon (HEXAb.ST) said on Monday it was expecting a second-quarter profit above market expectations, as continued growth in software and services and a recovery in China boosted earnings.

The Swedish company, publishing preliminary Q2 results, said adjusted operating profit would fall to 226 million euros ($256.7 million) versus 239 million in the same period the previous year, with net sales at 897 million euros, down from 976 million.

Market expectations were for operating profit (EBIT) of 174 million euros and sales of 846 million in Q2, according to Hexagon’s web site, updated as of Monday.

“Continued growth in software and services combined with a recovery in China and temporary short-term cost saving measures contributed to the resilience of the earnings development despite the disruptions caused by the Covid-19 pandemic,” Hexagon said in a statement.

The maker of measurement and positioning systems and software said organic sales declined by 10% compared to the

same period last year.

Its segment Industrial Enterprise Solutions recorded negative organic growth of 10%, while growth in Geospatial Enterprise Solutions fell by 9% in the quarter.

The firm is due to publish second-quarter results on July 24. It said it would not make any further comment until then.

Reporting by Helena Soderpalm, Editing by Jane Merriman and Chizu Nomiyama

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