Höganäs Interim report 1 January - 31 March 2010: Strong growth in Asia, positive income performance and advances in the surface coating segment

Höganäs Interim report 1 January - 31 March 2010: Strong growth in Asia,
positive income performance and advances in the surface coating segment

CEO Alrik Danielsson comments on first quarter earnings: 
- The Asian and South American markets remained strong in the first quarter.
Sales volumes in China and India reached all-time-high level. Demand conditions
in 2010 are uncertain, primarily in terms of Europe. We are especially pleased
that we have been able to retain a sharp cost focus throughout the sales
recovery of the past six months. This is also reflected in our income
improvement in the first quarter.

Our research and development initiatives paid off in the quarter with results
including a successful collaboration in laser surface coating for ship repairs.
This opens new markets for our surface coating powders, and demonstrates the
know-how Höganäs has accumulated in the laser surface coating segment.


First quarter 2010 (compared to corresponding period of previous year):

• Net sales were MSEK 1,548 (916) in the quarter, up 69% year on year. Sales
volumes were 93% higher. Demand
conditions continued to improve on all markets and sales volumes in Asia and
South America more than doubled.

• Operating income was MSEK to 282 (-111) and income after tax was MSEK 207
(-90). Volume increases and positive effects of cost savings had a positive
effect on income.

• Earnings per share for the quarter were SEK 5.94 (-2.58).

• Cash flow from operating activities was MSEK 94 (142).

• In the quarter, the net debt/equity ratio multiple reduced to 39% from 43%.

The outlook has improved somewhat. The Asian and South American markets are
strong, and a gradual improvement, although at an uncertain rate, is expected in
North America. However, the assessment is that the underlying demand in Europe
remains weak.

Höganäs, Sweden, 21 April 2010 
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 21 April 2010.

The press conference will be streamed at:
http://www.hoganas.com/en/Investor-Relations/Conference-Call/  
It is open to journalists, analysts and investors. 
Participants are welcome to call on +44 (0)207 162 0125. 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 21 April 2010.

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, water and
exhaust treatment products of the future in collaboration with its customers.
Founded in 1797, the company had sales of MSEK 4,571 in 2009, and is quoted on
NASDAQ OMX Stockholm's Mid Cap List. 
For more information, visit our website: www.hoganas.com.