Höganäs Interim report January - September 2009: Continued recovery, positive earnings performance and strong cash flow
CEO Alrik Danielsson comments on third quarter earnings: - The market continued to improve in the third quarter, with September proving somewhat stronger than expected. However, the underlying demand situation remains uncertain. Accordingly, the group has maintained a sharp focus on costs and cash flow. Meanwhile, we are making major initiatives in research and development, and are pleased by the growing customer interest in our patented “lean alloy” products (with low alloy metal content), as the pricing of alloy metals rose in the quarter.
Third quarter 2009 (compared to corresponding period of previous year) •Net sales were MSEK 1,193 (1,575) in the quarter, down 24% year on year. Sales volumes were 17% lower. Demand conditions improved on all markets in the third quarter. •Operating income was MSEK 142 (131) and income after tax was MSEK 102 (83). The positive effects of cost-cutting and price increases offset the negative profit effects of lower sales volumes. •Earnings per share for the quarter were SEK 2.94 (2.38). •Cash flow from operating activities was MSEK 287 (179), which is stronger than last year, mainly due to the measures taken to reduce working capital. •In the quarter, the net debt/equity ratio multiple reduced to 0.50 from 0.66. 1 January – 30 September 2009 (compared to corresponding period of previous year) •Net sales were MSEK 3,207 (4,750) in the period, down 32% year on year. Sales volumes were down 34%. •Operating income was MSEK 85 (559) and income after tax was MSEK 49 (398). The profit deterioration was mainly caused by lower sales volumes, especially during the first half-year this year. •Earnings per share for the period were SEK 1.41 (11.44). •Cash flow from operating activities was MSEK 726 (510). •The outlook for a progressive improvement of demand is unchanged compared to the second quarter. The market remains weak in most countries, but demand conditions have improved through the year. Höganäs, Sweden, 23 October 2009 Höganäs AB (publ) Streamed press conference Alrik Danielson, CEO, and Sven Lindskog, CFO, will present the Interim Report in a conference call at 10:30 a.m. on 23 October 2009. The press conference will be streamed at: http://www.hoganas.com/Investor-Relations/Conference-Call/ . It is open to journalists, analysts and investors. Participants are welcome to call on +44 (0)207 162 0125. The presentation is available at www.hoganas.com.