Höganäs: Höganäs Interim report January - June 2009

Höganäs: Höganäs Interim report January - June 2009

Continued very satisfactory cash flow and recovery on a weak market

CEO Alrik Danielsson comments on second quarter: 
- After a very weak period around year-end, the market has gradually improved
through the first half-year, although demand remains unstable and progress is
uncertain. 
We are pleased to have been able to generate positive income in the second
quarter despite sales volumes being 34% lower than in the corresponding period
of 2008, and the fact that we have continued to be able to generate significant
positive cash flow. We can conclude that we are benefiting from our strong
positioning in Asia in the market's current recovery phase.


Second quarter 2009 (compared to corresponding period of previous year):

• Net sales were MSEK 1,098 (1,592) in the quarter, down 31% year on year. Sales
volumes were 34% lower. Demand remained weak on most markets, although better
than in the first quarter. Continued inventory reductions through the value
chain, especially in North America and Europe. 

• Operating income was MSEK 54 (232) and income after tax was MSEK 37 (170). The
lower income was caused by reduced sales volumes, although offset partly by
cost-cutting, price increases, and sales of CO2 emission rights. Sales of
emission rights generated revenue of MSEK 40 (33).

• Earnings per share for the quarter were SEK 1.05 (4.91).

• Cash flow from operating activities was MSEK 297 (134), mainly a result of the
measures taken to reduce working capital and to some extent postponing
investments in fixed capital. 

• The net debt/equity ratio multiple has been reduced from 0.73 to 0.66 during
the quarter.


First half 2009 (compared to corresponding period of previous year):

• Net sales were MSEK 2,014 (3,175) in the period, down 37% year on year. Sales
volumes were 42% lower. 

• Operating income was a deficit of MSEK -57 (428) and the loss after tax was
MSEK-53 (315). The profit deterioration was principally a result of lower sales
volumes.

• Earnings per share for the period were SEK -1.53 (9.06).

• Cash flow from operating activities was MSEK 439 (331).

• The outlook has changed somewhat. The market remains weak, but the demand
situation has improved since year-end. However, the rate of recovery still
remains highly uncertain.

Höganäs, Sweden, 17 July 2009 
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 17 July 2009.

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 +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 17 July 2009.

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 6,103 in 2008, and is quoted on
NASDAQ OMX Stockholm's Mid Cap List. 
For more information, visit our website: www.hoganas.com.