Höganäs Interim report 1 January – 30 September 2011

- Continued strong sales and decision on strategic investment in Asia

CEO Alrik Danielsson comments on third quarter earnings:

“Höganäs continues to return solid growth and high profitability. The third quarter featured a recovery in Asia after the Japanese disaster. Operating margin was consistent with the previous year and our long-term objectives, despite the negative effect of a stronger Swedish krona.

Höganäs already has a leading position in Asia, and to position ourselves even better to benefit from the growth potential in Asia, we have taken a decision to build a mixing plant there. This is a long-term investment that will enhance our ability to deliver differentiated customer solutions with significantly shorter lead-times. The project starts up in the fourth quarter and is scheduled for completion at year-end 2012.”

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

• Net sales were MSEK 1,810 (1,728) 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 America, while demand was weaker in Europe. In Asia, demand improved gradually during the quarter, as the effects of the Japanese tsunami disaster tapered off. As a result of the accident at Hoeganaes Corporation's (GKN's) plant in the US in May, deliveries of approximately 6,000 tons of finished and semi-finished products were made to them in the third quarter. Excluding these deliveries, sales volumes were up 3% on the previous year.
• Operating income was MSEK 275 (261) and income after tax was MSEK 185 (189). Higher sales volumes had a positive effect on income while a stronger Swedish krona compared to the previous year had a negative effect.
• Earnings per share before and after dilution for the quarter were SEK 5.32 (5.43).
• Cash flow from operating activities was MSEK 273 (189).

1 January – 30 September 2011 (compared to corresponding period of previous year)

• Net sales were MSEK 5,449 (5,059) in the period, 8% up on the previous year. Sales volumes were up 9%.
• Operating income was MSEK 859 (876) and income after tax MSEK 610 (642).
• Earnings per share before and after dilution were SEK 17.53 (18.45) in the period.
• Cash flow from operating activities was MSEK 536 (505).
• The net debt/equity ratio increased to 28% from 24% at year-end due to cash dividends made.
• Prospects have changed since the assessment made in the Second-quarter Interim Report, so far as uncertainty regarding the immediate future has increased. It is uncertain how much the world's debt and liquidity crisis will affect global industrial activity. However, the underlying long-term demand conditions appear favourable, apart from southern Europe.

Höganäs, Sweden, 26 October 2011

Höganäs AB (publ)

Streamed press conference

Alrik Danielson, CEO and President, and Sven Lindskog, CFO, will present the Interim Report in a conference call at 10:30 a.m. on 26 October 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 26 October 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.