STOCKHOLM--(BUSINESS WIRE)--Regulatory News:
CEO Alrik Danielsson comments on fourth quarter earnings:
- Höganäs (STO:HOGAB) had its best fourth quarter ever, and we are benefiting from our strong position on emerging markets, as volume growth in Europe has not been as high. Sales volumes in China and India reached new record levels in the quarter. In Korea, we made a breakthrough on the market for connecting rods as one major customer started production of powder-forged connecting rods made from a unique chromium alloyed Astaloy® material, produced by Höganäs.
The year as a whole exceeded our expectations by a good margin. The downturn in Europe late in the year was expected, and although uncertainty regarding demand conditions for the short term persists, we are looking to the future with confidence. Höganäs advanced its position in 2010.
Fourth quarter 2010 (compared to corresponding period of previous year)
- Net sales were MSEK 1,612 (1,364) in the quarter, up 18% year on year. Sales volumes were 10% higher. Demand conditions were better than in the corresponding period of the previous year in all regions, but as expected, somewhat weaker in Europe than in the third quarter of 2010.
- Operating income was MSEK 238 (213) and income after tax was MSEK 162 (157). The income improvement is mainly due to higher sales volumes.
- Earnings per share for the quarter were SEK 4.66 (4.50).
- Cash flow from operating activities was MSEK 193 (129). Stronger earnings and lower tie-up of working capital, despite rising metal prices, had a positive effect on cash flow in the quarter.
1 January - 31 December 2010 (compared to corresponding period of previous year)
- Net sales were MSEK 6,671 (4,571) in the period, up 46% year on year. Sales volumes were 40% higher.
- Operating income was MSEK 1,114 (298) and income after tax was MSEK 804 (206).
- Earnings per share for the period were SEK 23.11 (5.92).
- Cash flow from operating activities was MSEK 698 (855).
- In the period, the net debt/equity ratio multiple reduced to 24% from 43%.
- The Board of Directors proposes a cash dividend of SEK 10.00 (3.00) per share.
- The market is expected to remain strong in Asia and South America, while a gradual recovery, albeit at an uncertain rate, is expected in North America. However, Höganäs judges that underlying demand in Europe will remain weak.
Höganäs, Sweden, 8 February 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 8 February 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)8 566 27513, +44 (0)207 108 6303 or +1 8666 765 869.
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 8 February 2011.
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.
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