STOCKHOLM (Reuters) – Swedish industrial technology group Hexagon beat market expectations on Wednesday with record quarterly earnings on Wednesday as it mitigated the effects of global component shortages.
The maker of measurement and positioning systems and software reported an operating profit before items affecting comparability of 373 million euros for the fourth quarter against a year-earlier 300 million.
Analysts polled by Refinitiv had on average forecast a profit of 344 million euros.
Hexagon said sales grew 7% on an organic, or like-for-like, basis in the quarter.
“The strained component supply reduced sales and organic growth by 6% resulting in a further increase in order backlog and additional cost pressures,” CEO Ola Rollen said in a statement.
“But as evident in the strong operating results, we successfully mitigated this constraint across the business.”
Hexagon proposed raising its annual dividend by 22% but noted that the overall outlook was unpredictable.
The group’s sensors and software are used for measurement and quality inspection in manufacturing processes and engineering plant design, as well as in infrastructure planning, construction, mining, agriculture and energy.
(Reporting by Anna Ringstrom; editing by Niklas Pollard)
