Hexcel Corp. (NYSE: HXL) reported Q2 EPS of $0.08, $0.12 worse than the analyst estimate of $0.20. Revenue for the quarter came in at $379 million versus the consensus estimate of $370.56 million.

Cash, 2020 Guidance Update and other

• The effective tax rate year-to-date is 16.5%. The tax provision included a $2.7 million benefit, primarily for the release of reserves of unrecognized tax benefits, as a result of tax audit settlements in the second quarter of 2020. Excluding this benefit, the adjusted year-to-date tax rate is now 21.9%. The underlying effective rate for the remainder of 2020 continues to be 23%.
• Net cash generated from operating activities for the first six months of 2020 was $73.6 million, compared to $157.2 million for the first six months of 2019. Capital expenditures were $40.4 million for the first six months of 2020 compared to $99.3 million for the first six months of 2019. Free cash flow was $33.2 million for the first six months of 2020 compared to $57.9 million for the first six months of 2019. Working capital was a cash source of $42.8 million in Q2 2020 as compared to a use of $4.3 million in Q2 2019. Free cash flow is defined as cash generated from operating activities less cash paid for capital expenditures. Reflecting our confidence in generating free cash flow for the remainder of 2020, we paid down half, or $125 million of the $250 million proactive revolver draw made in late March 2020. Revolver borrowing availability was $432 million at June 30, 2020.
• The share repurchase program remains temporarily suspended during this period of market uncertainty and no shares were repurchased during the second quarter of 2020. The remaining authorization under the share repurchase program at June 30, 2020 was $217 million. The quarterly dividend remains temporarily suspended. The Board of Directors will continue to evaluate capital allocation strategies on at least a quarterly basis.
• The Company continues to withhold financial guidance due to the market uncertainties arising from the global pandemic.

For earnings history and earnings-related data on Hexcel Corp. (HXL) click here.