Höganäs Year-end report 2009 - Record volumes in Asia, positive earnings performance and PoP Center opening
CEO Alrik Danielsson comments on fourth quarter earnings:
- The market performed robustly in the fourth quarter, especially in Asia. Sales volumes in China and India were the highest ever. However, the demand situation going into 2010 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 response we have received from our customers and end-users to our new prototyping centre, the PoP (Power of Powder) Centre in Höganäs, which opened in October. The Centre got off to a flying start and will play a key role in Höganäs’ future progress, and in driving powder metallurgy to a new level.
Fourth 2009 (compared to corresponding period of previous year):
• Net sales were MSEK 1,364 (1,353) in the quarter, up 1% year on year. Sales volumes were 27% higher. Demand conditions improved on all markets in the fourth quarter.
• Operating income was MSEK 213 (-32) and income after tax was MSEK 157 (-4). Volume increases and positive effects of cost savings and price increases had a positive impact on profit.
• Earnings per share for the quarter were SEK 4.50 (-0.13).
• Cash flow from operating activities was MSEK 129 (54).
• In the quarter, the net debt/equity ratio multiple reduced to 0.43 from 0.50.
1 January – 31 December 2009 (compared to previous year):
• Net sales were MSEK 4,571 (6,103) in the year, down 25% year on year. Sales volumes were down 23%.
• Operating income was MSEK 298 (527) and income after tax was MSEK 206 (394). The profit deterioration was mainly caused by lower sales volumes, especially during the first half-year.
• Earnings per share were SEK 5.92 (11.31).
• Cash flow from operating activities was MSEK 855 (564).
• The Board is proposing a cash dividend of SEK 3.00 per share (3.00).
• The outlook for a progressive improvement in demand is unchanged since the third quarter. The market remains weak in most countries apart from China and India, but demand conditions improved through the year.
Höganäs, Sweden, 9 February 2010
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 9 February 2010.
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
This information is mandatory for Höganäs to publish pursuant to the Swedish Securities Markets Act. The information was submitted for publication at 9 a.m. on 9 February 2010.