Hexagon implements cost reduction programme - lays off 400

Hexagon’s current long-term financial plan targets revenues of EUR 3.5 billion with an EBIT margin of 25 percent by 2016. Since the launch of the plan, Hexagon has delivered solid organic growth as well as improved profitability, reporting sales of EUR 2.6 billion and an EBIT margin of 22 percent in 2014. Recent currency movements will have a positive impact on Hexagon’s sales and earnings in absolute terms. The strengthening of the US dollar and the Chinese yuan is beneficial, as Hexagon has more income than cost in these currencies. At the same time, the strengthening of the Swiss franc is negative for margins as Hexagon has more cost than income in the Swiss franc. As such, Hexagon is in the process of implementing a cost reduction programme in order to mitigate this negative impact on the margin. The programme, which primarily targets lowering costs in Switzerland and the US, will affect approximately 400 employees and is expected to drive cash cost savings of approximately EUR 35 million per annum with full effect as of 2016.