Hexcel Corp. (NYSE:HXL) Q2 2020 Earnings Conference Call - Final Transcript

Jul 28, 2020 • 10:00 am ET


Hexcel Corp. (NYSE:HXL) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to Hexcel's Second Quarter 2020 Earnings Call. [Operator Instructions]

I would now like to hand the conference over to your first speaker today, Patrick Winterlich, Chief Financial Officer. Thank you. Please go ahead, sir.

Patrick Winterlich

Thank you, Julian. Good morning, everyone. Welcome to Hexcel Corporation's second quarter 2020 earnings conference call. Before beginning, let me cover the formalities. First, I want to remind everyone about the safe harbor provisions related to any forward-looking statements we may make during the course of this call. Certain statements contained in this call may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. They involve estimates, assumptions, judgments and uncertainties caused by a variety of factors that could cause future actual results or outcomes to differ materially from our forward-looking statements today. Such factors are detailed in the Company's SEC filings and last night's news release. A replay of this call will be available on the Investor Relations page of our website.

Lastly, this call is being recorded by Hexcel Corporation and is copyrighted material. They cannot be recorded or rebroadcast without our express permission. Your participation on this call constitutes your consent to that request.

With me today are Nick Stanage, our Chairman, CEO and President; and Kurt Goddard, our Vice President of Investor Relations. The purpose of the call is to review our second quarter 2020 results detailed in our news release issued yesterday.

Now, let me turn the call over to Nick.

Nick L. Stanage

Thanks, Patrick. Good morning, everyone, and thank you for joining us as we share our second quarter results. Looking back at the scenario planning, we do part of our annual strategic reviews. No one could have imagined the specific nature and magnitude of a global pandemic and economic consequences we are experiencing today. Understanding, learning and adjusting in real time to today's realities are essential steps to delivering shareholder value. Our One Hexcel team will continue to act quickly and aggressively. We will remain vigilant and responsive to our customers and we will position the Company to be even stronger when growth returns.

As you saw in our release last night, the COVID-19 pandemic had a significant impact on our second quarter sales, operating income and earnings per share. These results are disappointing, yet not surprising. Once the pandemic's effect on air travel and the global economy unfolded earlier this year, we moved swiftly to assess the steep decline ahead and knew that the impact on Aerospace and Industrial industries would lead to one of our most challenging years ever.

Commercial Aerospace has been impacted significantly as a result of the pandemic and we expect this downturn will extend for some time to come. As you know, year-over-year, global flights are down more than 50%, and major airlines are flying well below their planned capacity levels. In our Commercial Aerospace market, demand is down for both wide-body and narrow-body aircraft, as well as business jets.