Höganäs Year-end report 1 January - 31 December 2010- A robust conclusion to a fantastic year

Höganäs Year-end report 1 January - 31 December 2010- A robust
conclusion to a fantastic year

CEO Alrik Danielsson comments on fourth quarter earnings:

- Höganäs 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 (http://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.

 

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