English

Höganäs Interim Report 1 January – 30 June 2011

Report this content

Record sales and further advances in a prioritized market segment

CEO Alrik Danielsson comments on second quarter earnings:

- Höganäs continues to return solid growth and high profitability. The second quarter was characterised by negative volume trends in Asia as a result of the Japan disaster, although this was mitigated by unforeseen deliveries to Hoeganaes Corporation (GKN).

Operating margin improved compared to the first quarter 2011 and was very strong, although it was even better in the corresponding period of the previous year as we benefitted from a significantly weaker Swedish krona at that time.

We advanced our positions in the Brazing segment in the quarter through a licensing agreement with a German manufacturer, which provides us with our own high-grade braze paste. This means taking a further step towards becoming our end customers’ development partner.

Second quarter 2011 (compared to corresponding period of previous year)

  • Net sales were MSEK 1,869 (1,783) in the quarter, up 5% year on year. Sales volumes were 8% higher. Demand conditions were better than in the corresponding period of the previous year in both Europe and America, while demand was weaker in Asia, largely because of the consequences of the tsunami. As a result of an accident at Hoeganaes Corporation's (GKN's) plant in the US, one-off deliveries of approximately 10,000 tons of finished and semi-finished products were made to them in the quarter. Excluding these additional deliveries, total sales volumes were in line with the previous year.
  • Operating income was MSEK 302 (333) and income after tax was MSEK 217 (246). Higher sales volumes had a positive effect on income while a stronger SEK had a negative effect.
  • Earnings per share before and after dilution for the quarter were SEK 6.24 (7.07).
  • Cash flow from operating activities was MSEK 247 (222).

1 January – 31 December 2011 (compared to corresponding period of previous year)

  • Net sales were MSEK 3,639 (3,331) in the period, 9% up on the previous year. Sales volumes were up 9%.
  • Operating income was MSEK 584 (615) and income after tax MSEK 425 (453).
  • Earnings per share before and after dilution were SEK 12.21 (13.02) in the period.
  • Cash flow from operating activities was MSEK 263 (316).
  • The net debt/equity ratio increased to 31% from 24% since the beginning of the year due to cash dividends made.
  • The prospects largely remain unchanged on the assessment made in the first quarter report. The market is expected to remain strong in Asia and South America. The downturn in Asia in the second quarter is expected to be temporary. A gradual recovery is expected in North America, while European market conditions remain difficult to assess, even if the prospects for the export industry remain positive in the short term.

Höganäs, Sweden, 19 July 2011

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 19 July 2011.

The press conference will be streamed at: www.hoganas.com/Investor Relations/Conference Call.

It is open to journalists, analysts and investors.

Participants are welcome to call on +46 (0)8 505 598 12, +44 (0)207 108 6303 or +1 8666 765 870.

The presentation is available at www.hoganas.com.

NB:

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 19 July 2011.

For more information

Please contact:
Alrik Danielson, CEO and President, +46 (0)42 33 80 00
Sven Lindskog, Chief Financial Officer, +46 (0)42 33 80 00

About Höganäs

Höganäs AB is the world's leading producer of iron and metal powders. Building on its clear vision of the possibilities of powder to improve efficiency, the consumption of resources and environmental impact across a raft of segments, the company has developed in-depth application skills.

Thus Höganäs can help create the automotive components, white goods, and products for water and exhaust treatment products of the future in collaboration with its customers. Founded in 1797, the company had sales of MSEK 6,671 in 2010, and is quoted on NASDAQ OMX Stockholm's Mid Cap List.

For more information, visit our website: www.hoganas.com.

Documents & Links