NEW YORK, March 30, 2020 -- Halper Sadeh LLP, a global investor rights law firm, continues to investigate whether the following proposed mergers are fair to shareholders..
Hexcel (HXL) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
A Colorado airplane parts manufacturer called off its multibillion-dollar merger with another company due to the havoc the COVID-19 pandemic is creating in the aviation industry. Woodward Inc. (Nasdaq: WWD), based in Fort Collins, and Hexcel Corp. (NYSE: HXL), based in Stamford, Connecticut, on Monday mutually cancelled their all-stock deal that would have combined major makers of aircraft control systems and parts. Woodward also said Monday that it will reduce spending because of the shrinking demand in aviation manufacturing, including laying off some employees, furloughing others, reducing its CEO's pay by 25% and instituting a hiring and wage freeze.
(Bloomberg Opinion) -- In an ordinary April, Corporate America would now be gearing up for proxy season, preparing for annual meetings and arguing with activist investors over strategy. Instead, companies find themselves on the front lines of the coronavirus crisis, facing difficult choices about how best to protect workers, investors, and their businesses from the virus and its fallout.Among the issues normally debated at spring shareholder meetings is the use of anti-takeover measures that critics say make it harder for activist investors to hold management accountable, or to push management to shift strategic direction. Supporters of these measures say that they are necessary because they allow firms to make long-term investments. Those debates have been hard-fought for years, and there are ordinarily strong arguments for and against limiting these defensive measures. But whatever one’s view of them, everyone should recognize that this is no ordinary moment. Management needs flexibility now to take the extraordinary actions required by this crisis.Anti-takeover measures, including the “poison pill” shareholder-rights plan, protect management from outside pressure by limiting the stakes that any given investor can acquire. This insulates the company, to some degree, from the “market for corporate control” and from election contests brought by activists. America’s largest investors have typically been skeptical of the use of defenses because of a concern that they will shield management from accountability to investors. Indeed, the two dominant firms advising shareholders how to vote in corporate elections have long recommended voting against all members of a board that adopts takeover defenses without the approval of shareholders before or shortly after the fact.Investor skepticism about takeover defenses is understandable. Although the empirical evidence is far from conclusive, the unilateral adoption of such measures poses the risk of entrenching underperforming insiders, even as it carries the potential of encouraging firms to make long-term investments. The debate won’t be resolved anytime soon — but it needs to be left for another time. Management’s immediate focus must be battling the virus, not engaging in proxy fights.Corporate managers will soon have to make enormously consequential decisions for millions of Americans in the face of unprecedented uncertainty. Should companies conserve cash by laying off workers, especially in industries where a return to full productivity seems especially far off? Or should they follow the examples of Starbucks Corp. and Paypal Holdings Inc., which have assured employees of future paychecks despite the devastating effects of the crisis on their business? Some manufacturers may even need to pivot to producing personal protective equipment at great short-term cost to the companies and their investors. Crucial decisions like these must be made quickly — and managers should be free to make them without worrying that they will soon find an activist on their doorstep demanding answers.Even some activist investors seem to agree. Many have voluntarily walked away from planned attacks, or pursued constructive and friendly settlements with target-company boards. But not all activists have said they will take this approach. That’s why some boards have recently announced the adoption of takeover defenses in the midst of the crisis even though, under institutional investors’ current policies, that could put directors’ jobs at risk. Just Monday, for instance — after calling off a planned merger on account of the pandemic — aerospace suppliers Hexcel Corp. and Woodward Inc. each adopted shareholder-rights plans.Giving companies the space they need to manage this crisis will require leadership from institutional investors. In particular, proxy-advisory firms such as Institutional Shareholder Services Inc. and Glass Lewis that have spearheaded investor skepticism over takeover defenses should suspend their anti-poison pill policies for the duration of the crisis and make clear that they will give companies the case-by-case consideration that this moment requires. Those firms have come under considerable fire from business advocates claiming that they fail to give situation-specific advice, even drawing some surprising threats of federal regulation. Adjusting their policies in light of the current crisis would provide a compelling counterargument to those who say those firms are ideologically driven and want to impose one-size-fits-all solutions on corporate America.In reviewing the use of shareholder rights plans adopted in the crisis, investors and proxy advisory firms must be attentive to the extraordinary pressures that firms are facing. At the same time, boards shouldn’t take advantage of this crisis to erect entrenched defensive measures like staggered boards that shareholders have clearly rejected. This is a time to put the ordinary debate aside, and to provide boards with space to respond to the multiple challenges of protecting firms, employees, consumers, and the country.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Edward B. Rock is a professor at New York University's School of Law and co-director of NYU’s Institute for Corporate Governance and Finance. Haley Sylvester is a resident fellow at New York University's Institute on Corporate Governance and Finance.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Hexcel (HXL) and Woodward decide to terminate their merger deal in response to the increasing turmoil caused by the coronavirus pandemic in the aerospace sector.
The Connecticut-based company has facilities in Burlington and Kent, where hundreds of layoffs have been announced.
Hexcel Corporation (NYSE: HXL) today announced a number of actions it is taking in response to the global coronavirus (COVID-19) pandemic and the related impact on its business.
Woodward, Inc. (NASDAQ: WWD) and Hexcel Corporation (NYSE: HXL) today announced that the companies have mutually agreed to terminate their merger agreement, previously announced on January 12, 2020, under which the parties had agreed to combine in an all-stock merger of equals.
3D Systems (NYSE: DDD) today announced that Wayne Pensky, former chief financial officer of Hexcel Corporation (NYSE: HXL), has been appointed interim CFO, effective May 26. The company has initiated an executive search to identify a permanent replacement for Todd Booth, executive vice president and CFO, who has resigned from the company to pursue other opportunities.
(Bloomberg Opinion) -- Who’s willing to bet on the aerospace industry’s quick return from the coronavirus devastation? Not the CEOs of two of its leading suppliers. Woodward Inc. and Hexcel Corp. mutually agreed to call off their planned merger in light of the current pandemic. More than half of the world’s fleet has been grounded as travel bans and fear of contagion keep fliers at home, forcing the aerospace industry into a fight for its survival. This isn’t the first deal to get scotched because of the coronavirus: Xerox Holdings Corp. called off its $35 billion hostile pursuit of HP Inc. and private equity firm Apollo Global Management Inc. reportedly abandoned talks with TV-station owner Tegna Inc. for an $8.5 billion takeover. But both of those transactions reportedly involved at least some cash, which has become a precious commodity in the age of the coronavirus. The Woodward-Hexcel merger, by contrast, was all-stock, and as such, not dependent on capricious debt markets and an ill-timed overloading of balance sheets.There were some signs the companies were still being punished for going through with the deal: As of Friday, Hexcel and Woodward had each dropped more than 55% since the merger was announced in mid-January, compared with a decline of about 35% for the SPDR S&P Aerospace & Defense ETF. At those prices, the deal terms valued Hexcel at about $32 a share, or about $3.7 billion including debt, compared with an enterprise value of about $7.5 billion when the merger was first announced.While Hexcel shares declined Monday on news that the merger was off, Woodward’s stock rallied more than 10%. That gain feels short-sighted. If you liked an aerospace combination that “brings together a broad, unparalleled portfolio of leading-edge technologies” with a “strong balance sheet” in January, you should like it even more in April. The fact that the companies themselves aren’t convinced of this is on the one hand a sign of just how deep and long-lasting the slump in aerospace will be. But it also feels like a missed opportunity. A famous Warren Buffett maxim comes to mind: Be fearful when others are greedy and be greedy when others are fearful. To be sure, one of the big selling points of the Woodward-Hexcel merger was the ability to significantly ramp up research and development spending to better position the combined company to compete on the next generation of aircraft technology, with an eye toward better fuel efficiency and lower emissions. That has likely fallen further down the list of priorities for aerospace companies right now given the virus cash crunch and a drop in oil prices that’s made it more economical to keep flying older, clunkier models. There is also the question of distraction. Big deals are complicated. For all of Hexcel and Woodward’s previous talk of complementary cultures, there are bound to be integration hiccups, particularly when the virus fallout makes it likely job cuts will be in order. Separately on Monday, Woodward said it was implementing “workforce management” policies including a hiring freeze, layoffs and furloughs, without specifying the number of jobs that would be affected. It will also reduce its dividend, eliminate 2020 bonus payments and trim pay for the CEO, board and top officers. Hexcel also announced plans to evaluate employment levels and reduce spending.Still, the trend toward more climate-friendly aircraft is likely to be sustained over the longer term and the companies would have gotten more out of these cost-reduction actions if they were spread out across a bigger, combined entity. “Calling off the merger is clearly bad news for both companies, as we think scaling up makes a lot of sense, particularly when it comes to dealing with a crisis,” Vertical Research Partners analyst Rob Stallard wrote in a note. Both Woodward and Hexcel also announced shareholder rights plans meant to guard against unwanted takeover advances in a sign they are worried someone else will have take advantage of their depressed stock prices and have the gumption to pull off a deal that they couldn’t.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Q1 earnings of Aerospace sector, comprising defense stocks, is expected to decline 43.5% year over year while revenues are projected to drop 1.1%.
Hexcel's (HXL) Q1 net sales total $541 million, surpassing the Zacks Consensus Estimate by 3.3%.
Hexcel (NYSE:HXL) reported Q1 results Monday afternoon.Quarterly Results Earnings per share fell 23.81% year over year to $0.64, which missed the estimate of $0.70.Revenue of $541,000,000 lower by 11.30% from the same period last year, which missed the estimate of $556,450,000.Details Of The Call Date: Apr 21, 2020View more earnings on HXLWebcast URL: https://event.on24.com/eventRegistration/EventLobbyServlet?target=reg20.jsp&referrer=https%3A%2F%2Finvestors.hexcel.com%2Fevents-and-presentations%2Fdefault.aspx&eventid=2160433&sessionid=1&key=31436753D6C1233944D2C4AA05ECB903®Tag=&sourcepage=registerPrice Action Company's 52-week high was at $87.00Company's 52-week low was at $28.05Price action over last quarter: down 58.41%Company Profile Hexcel Corp develops and manufactures composites used in aerospace, defense, and other industrial markets. The company operates under two segments: Composite Materials and Engineered Products. It offers a wide range of adhesives, carbon fibers, and other structured materials to use in commercial and military aircraft, wind turbines, vehicles, and other industrial applications. The company has sales offices in different regions of the world to help distribute its products globally. Approximately half of its revenue comes from the United States, with the remainder split among various regions. Hexcel either markets directly to customers or uses independent distributors and manufacturer representatives.See more from Benzinga * IBM: Q1 Earnings Insights * P/E Ratio Insights for Dell Technologies * Stocks That Hit 52-Week Lows On Monday(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Woodward (WWD) pulls the plug on its much-awaited merger deal with Hexcel, which is expected to cause a major setback in the aerospace industry.
Boeing suppliers Woodward and Hexcel cancel their plan to merge, citing "unprecedented challenges" caused by the coronavirus pandemic.
Hexcel Corporation (NYSE:HXL):
The companies, which make and supply aircraft parts, had agreed to a merger in January in a $6.4 billion deal. The market rout triggered by the coronavirus pandemic and the resulting economic downturn has thrown a wrench into corporate deal making. Boeing, which halted the production of its grounded 737 MAX aircraft in January, said on Sunday it would extend the suspension of production at its Washington state facilities until further notice.
NEW YORK, NY / ACCESSWIRE / April 21, 2020 / Hexcel Corp. (NYSE:HXL) will be discussing their earnings results in their 2020 First Quarter Earnings call to be held on April 21, 2020 at 10:00 AM Eastern ...
Major indices of the aerospace and defense industry end in the green in the trailing five trading sessions
Q1 2020 Hexcel Corp Earnings Call