Hexcel Provides Financial Outlook

Hexcel Corporation (NYSE:HXL) announced today its financial outlook
through 2021, as well as longer term targets, during the Company’s
Investor Day held in Salt Lake City, Utah.

Chairman, CEO and President Nick Stanage said: “We expect strong sales
growth over the next three years and beyond, with adjusted diluted
earnings per share to grow at a double-digit rate, supported by
Operational Excellence. We expect continued expansion of free cash flow
generation, providing a total of $1.8 billion between 2019 and 2023
which will be available for continued investment in organic growth, for
strategic acquisitions, and to return to shareholders.”


For the three-year period 2019 to 2021:

  • Total Sales to grow at a compounded annual growth rate (CAGR) of

  • Commercial Aerospace

4-7% CAGR

  • Space & Defense

11-13% CAGR

  • Industrial

>10% CAGR

  • Adjusted Diluted Earnings Per Share* to grow at a double-digit

  • Capital Expenditures of $500-$550 million in total during this
    three-year period

For the period 2019-2023:

  • Free Cash Flow* targeted at $1.8 billion

Mr. Stanage continued, “In the Commercial Aerospace market, we expect to
benefit from production increases for the Airbus A320neo, Boeing 737 MAX
and 777X, further supported by secular penetration and strong growth in
Engines and Nacelles along with other commercial and regional programs.
We are benefitting from increased activity in the Space & Defense
market, supported by continued strength in the F-35 and military
rotorcraft programs, including the CH-53K as well as from our
acquisition of ARC Technologies. Our Industrial market remains strong,
underpinned by Wind Energy sales along with the continued adoption of
composites in the automotive and marine industries.”

Mr. Stanage concluded, “Our team is talented and experienced, our R&T
group is innovating material science solutions of tomorrow, and our
advanced composite manufacturing footprint is unparalleled for the needs
of our customers – supporting our leadership position and creating
excellent value for our shareholders.”

As previously disclosed, the management audio presentation was webcast
live and a supporting slide deck is available on the investor relations
webpage of the Hexcel website at www.Hexcel.com.
A replay will also be available on the investor relations webpage of the
Hexcel website approximately two hours after the conclusion of the event.

*Non-GAAP Measures

Adjusted diluted earnings per share and
free cash flow (defined as cash provided by operating activities less
cash payments for capital expenditures) are non-GAAP measures.
Management believes that adjusted diluted earnings per share and free
cash flow are meaningful to investors because they provide a view of
Hexcel with respect to ongoing operating results excluding special
items. Special items represent significant charges or credits that are
important to an understanding of Hexcel’s overall operating results in
the periods presented. Non-GAAP measurements are not recognized in
accordance with generally accepted accounting principles and should not
be viewed as an alternative to GAAP measures of performance. The Company
is not providing a quantitative reconciliation of our non-GAAP outlook
or targets to the corresponding GAAP information because the GAAP
measures that we exclude from our non-GAAP outlook and targets are
difficult to predict and are primarily dependent on future uncertainties.

About Hexcel

Hexcel Corporation is a leading advanced
composites company. It develops, manufactures and markets lightweight,
high-performance structural materials including carbon fibers, specialty
reinforcements, prepregs and other fiber-reinforced matrix materials,
honeycomb, adhesives, engineered core and composite structures for use
in commercial aerospace, space and defense and industrial applications.
Learn more at www.Hexcel.com.

Disclaimer on Forward Looking Statements

This news release
contains statements that are forward looking within the meaning of the
Private Securities Litigation Reform Act of 1995, including statements
relating to our financial outlook through 2021 and longer term targets,
the estimates and expectations based on aircraft production rates made
publicly available by Airbus, Boeing and others; the revenues we may
generate from an aircraft model or program; the impact of the possible
push-out in deliveries of the Airbus and Boeing backlog and the impact
of delays in the startup or ramp-up of new aircraft programs or the
final Hexcel composite material content once the design and material
selection have been completed; expectations of composite content on new
commercial aircraft programs and our share of those requirements;
expectations of growth in revenues from space and defense applications,
including whether certain programs might be curtailed or discontinued;
expectations regarding growth in sales for wind energy, recreation,
automotive and other industrial applications; expectations regarding
working capital trends and expenditures; expectations as to the level of
capital expenditures and when we will complete the construction of
capacity expansions and qualification of new products; expectations
regarding our ability to maintain and improve margins as we add new
facilities and in view of the current economic environment; projections
regarding our tax rate; and the anticipated impact of the above factors
and various market risks on our expectations of financial results for
2019 and beyond. 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 reductions in sales to any
significant customers, particularly Airbus, Boeing or Vestas, including
any reduction in sales to Boeing related to a decrease in production
volume of the 737 MAX; changes in sales mix; changes in current pricing
and cost levels; changes in aerospace delivery rates; changes in
government defense procurement budgets; changes in military aerospace
program technology; timely new product development or introduction;
industry capacity; increased competition; availability and cost of raw
materials; supply chain disruptions; inability to install, staff and
qualify necessary capacity or achievement of planned manufacturing
improvements; cybersecurity breaches or intrusions; currency exchange
rate fluctuations; changes in political, social and economic conditions;
including, but not limited to, the effect of change in U.S. trade
policies and the exit of the U.K. from the European Union; work
stoppages or other labor disruptions; unexpected outcome of legal
matters or impact of changes in laws or regulations. Additional risk
factors are described in our filings with the Securities and Exchange
Commission. We do not undertake an obligation to update our
forward-looking statements to reflect future events.

Kurt Goddard, Vice President – Investor Relations
+1 (203) 352-6826

Source: Hexcel Corporation

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