INTERIM REPORT 1 January

INTERIM REPORT 1 January - 31 March 2011

-A robust start to 2011 and sustained high investment in research and
development

CEO Alrik Danielsson comments on first quarter earnings:

-After a record 2010, Höganäs began 2011 with robust growth despite
strong comparables from the first quarter 2010. 2010 came to a very
strong conclusion on growth markets, while more mature markets were less
robust. Consequently it is pleasing to note that Europe and North
America largely led volume growth in the first quarter.

Operating margin improved compared to the fourth quarter 2010 and was
very strong. Although the margin was even better in the corresponding
period of the previous year, we benefitted from a significantly weaker
Swedish krona at that time. Metal price inflation also dilutes our
margin in percentage terms, even if it only has a limited impact on
income in absolute terms.

The start to 2011 is also characterised by Höganäs' sustained high
investments in research and development, mainly in component solutions
for new electromagnetic applications and in powder-based gear-wheels for
gear boxes.

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

  · Net sales were MSEK 1,770 (1,548) in the quarter, up 14% year on
year. Sales volumes were 11% higher. Demand conditions were better than
in the corresponding period of the previous year in all regions and the
sequential volume increase (compared to the preceding quarter) in Europe
and America was very positive.
  · Operating income was MSEK 282 (282) and income after tax was MSEK
208 (207). Higher sales volumes had a positive effect on income while a
stronger SEK had a negative effect.
  · Earnings per share before and after dilution for the quarter were
SEK 5.97 (5.94).
  · Cash flow from operating activities was MSEK 16 (94). Higher sales
volumes led to an increased requirement for working capital and the
positive income figure for 2010 implied a higher supplementary tax
payment.
  · The net debt/equity ratio was 24% at the end of the period,
unchanged compared to the beginning of the financial year.
  · The market is expected to remain strong in Asia and South America,
while a gradual recovery is expected in North America. European market
conditions remain hard to assess. In some countries, such as Germany,
industry stands to make short-term gains from good economic growth and
exports, while austerity measures are expected to hold back consumption
in heavily indebted European nations.

Höganäs, Sweden, 27 April 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 27 April 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 (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 27 April 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
INTERIM REPORT 1 January - 31 March 2011

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