Friday, May 30, 2008

Hexcel wins parts deal from Airbus worth up to $5B

By Mass High Tech Staff

Hexcel Corp. reports it has landed a contract that could be worth $5 billion to provide Airbus SAS with aircraft materials. 

Under the deal, Hexcel (NYSE: HXL) will provide carbon fiber composite materials for the primary structures of the Airbus long-range wide-body A350 XWB aircraft, which is still in the design process. The deal will run through 2025, according to Hexcel. The company said it will also offer other composite products, such as fabrics, resins, adhesives, honeycombs and molded parts for the plane, which could generate additional revenue.

Last October, Hexcel paid $15 million to resolve allegations it violated the False Claims Act in connection with its role in the manufacture and sale of defective Zylon bulletproof vests to federal, state, local and tribal law enforcement agencies, according to the U.S. Department of Justice. The same month, the company reported plans to expand carbon fiber production capacity by approximately 70 percent over the next three years, a $180 million investment.

Stamford, Conn.-based Hexcel reported a 2007 net income of $61.3 million on revenue of $1.2 billion.