Höganäs Interim Report 1 January – 31 March 2012
- Good start to 2012 and advances in surface coating segment
CEO Alrik Danielsson comments on first quarter earnings:
“As expected, the market was fairly weak in Europe in the first quarter, while the recovery in Asia continued after a 2011 hit by the tsunami and flooding. On a volatile market, we succeeded in safeguarding sales, earnings and cash flow, despite a notable negative currency effect. Sales volumes were somewhat lower than 2011, but comparisons should consider that the first quarter of 2011 was exceptionally strong, when we reported an 11% volume growth on the first quarter of 2010. Meanwhile, we are pleased that the outlook for 2012 is somewhat more positive than the view we had last autumn.
Our investments in research and development are still generating results. Jointly with an Indian customer, we have extended the usage of lasers for surface coating to also function for valve seats. This opens new market segments for our surface coating powders, in the automotive and other industries. It also reinforces our conviction that our focus on building know-how in the laser surface coating segment is correct.
First quarter 2012 (compared to corresponding period of previous year)
- Net sales were MSEK 1,813 (1,770), up 2% year on year. Sales volumes were 3% lower. Demand conditions were better than in the corresponding period of the previous year in Asia and North America, but worse in Europe. However, the sequential volume increase (in quarter-on-quarter terms) was very positive in all regions.
- Operating income was MSEK 282 (282) and income after tax was MSEK 203 (208). Lower sales volumes and lower currency hedging earnings had a negative impact on income, while price increases and savings measures had a positive effect.
- Earnings per share before and after dilution for the quarter were SEK 5.83 (5.97).
- Cash flow from operating activities was MSEK 324 (16). Cash flow was strong thanks to the low level of increase of the working capital.
- The net debt/equity ratio was 17% at the end of the period, compared to 25% at the beginning of the financial year.
- Prospects have improved somewhat compared to the assessment made in the Year-end Report. Uncertainty regarding the immediate future has eased. A significant downturn in global industrial activity in 2012 due to the global debt crisis now appears unlikely, despite fundamental imbalances persisting. Höganäs judges that demand conditions are expected to be weaker than last year in Europe, but fairly favourable in the rest of the world.
Höganäs, Sweden, 25 April 2012
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 25 April 2012.
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)8 506 85759, +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 25 April 2012.
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 7,081 in 2011, and is quoted on NASDAQ OMX Stockholm's Mid Cap List.
For more information, visit our website: www.hoganas.com.