* Adjust op profit EUR 118 mln vs forecast 119 mln
* Says solid demand also in aerospace, energy
(Adds CEO comments, detail, background)
STOCKHOLM Oct 23 Measurement technology group
Hexagon said demand was picking up in the
long-suffering European market, especially in the construction
sector, as it posted a rise in third-quarter core earnings in
line with expectations on Wednesday.
The company, market leader in a specialised sector
straddling software and engineering hardware, said a stronger
European construction market and new product launches had
spurred growth in the quarter.
"We experienced solid demand in the aerospace, power and
energy sectors, but faced weakness in the U.S. defence sector,
as well as automotive, which is currently in the trough of its
capex cycle," CEO Ola Rollen said in a statement.
Hexagon's core business Measurement Technologies grew 5
percent organically, which strips out currency swings and
acquisitions, in Europe, the Middle East and Africa (EMEA), the
firm's top market, a pickup from the 1 percent seen in the
"I consider the third quarter a breakthrough. We saw
tendencies toward a turnaround in the first and second quarters,
but in the third it has turned into a broader upturn," Rollen
Adjusted operating earnings at the group, which sells under
brands such as Leica Geosystems as well as its own name, rose to
118 million euros from a year-ago 115 million against a mean
forecast of 119 million in a Reuters poll of analysts.
Hexagon, which has made two smaller acquisitions and
launched a bid to acquire Norwegian oil services group Veripos
for around $150 million this month, said group sales in the
quarter were roughly flat at 577 million euros from a year-ago
578 million, lagging the 585 million seen by analysts.
Sales grew organically by 5 percent for the group, on par
with the growth seen in the second quarter.
Growth in the Americas, which slowed compared to the second
quarter, came mainly from the infrastructure, power and energy
Link to full report: r.reuters.com/hev93v
(Reporting by Sven Nordenstam and Johannes Hellstrom; editing
by Alistair Scrutton and Niklas Pollard)