although the commercial aerospace market will always be cyclical,
we expect the production of new aircraft of 100 seats or more
to remain in the range of 700-800 aircraft annually for the next
few years, driven by passenger growth and fleet obsolescence.
During the next few years we expect Asian
airlines to return to the market with orders for wide-body aircraft
which will be a positive for composite material consumption. Hexcel’s
business is balanced between Boeing and Airbus, and we have a
strong position in the growing regional jet market.
Hexcel continues to pursue expanded use of its products in industrial
markets. During the past year we have had notable success in growing
two application markets, namely wind energy and automotive. Wind
energy is a rapidly growing market where our products are used
to make the blades of wind turbines. Likewise, after many years
of effort, we have had success introducing energy absorbing honeycomb
products on several major automobile platforms. This is a promising
development and will complement our other markets in recreation,
marine, rail and civil infrastructure. These developing applications
should represent about $50 million in revenue in 2000, a strong
performance for organic growth of composite materials in new areas.
we begin the new millennium, Hexcel has witnessed a period of
transition and consolidation. Employing several focused operational
programs and possessing a unique position within a variety of
diverse markets, Hexcel is poised for improved profitability as
growth returns to the company’s markets beginning in 2001.
closing, I would like to recognize the passing of two of Hexcel’s
longtime colleagues, Frank Wimer and David Wong. Over the years,
Frank made enormous contributions to Hexcel both as a consultant
and a director. David served as Corporate Controller, VP of Human
Resources and VP of Corporate Affairs over the course of his career
with the company. We will surely miss their warm personalities
and business insights.
would also especially like to thank our customers, employees,
directors and our stockholders for their continued support during
a difficult year. We at Hexcel look forward to meeting the exciting
opportunities of this new millennium.
Chief Executive Officer
Chief Operating Officer