Höganäs Year-End Report 2011

Höganäs Year-End Report 2011

Focus on cash flow and continued initiatives in the value chain through the
launch of inductors

CEO Alrik Danielsson comments on fourth quarter earnings:

“Just as in 2010, in 2011 we achieved our long-term objectives for growth,
operating margin and returns. During the autumn we were negatively affected by
inventory adjustments made by our customers, which also caused us to reduce our
inventories and cut our production rates. We did this to protect our strong cash
flow, even if it is having a negative effect on earnings in the quarter.

The prospects for 2012 are uncertain, and Höganäs is being affected by
fluctuations in the global economy, although as a company, we are in a strong
position for our future. We are now launching inductors under the Höganäs brand
Inductit™, which is another big step in Höganäs’ work in the value chain. These
products are really promising, not least because of increased demand for
environmentally friendly energy sources.”

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

  · Net sales were MSEK 1,632 (1,612) in the quarter, up 1% year on year. Sales
volumes were 3% lower. Demand conditions were better than in the corresponding
period of the previous year in North America, but worse in most parts of the
rest of the world. This is an effect of lower production rates and destocking by
many customers. The negative effect of floods in Thailand is estimated at some
1,500 tons, or a 1.4% volume decrease for the group.
  · Operating income was MSEK 212 (238) and income after tax was MSEK 152 (162)
due to lower volumes and lower currency hedging earnings.
  · Earnings per share before and after dilution for the quarter were SEK 4.37
(4.66).
  · Cash flow from operating activities was MSEK 267 (193). Destocking enabled
improved cash flow, despite somewhat lower operating income.

1 January – 31 December 2011 (compared to corresponding period of previous year)

  · Net sales were MSEK 7,081 (6,671), 6% up on the previous year, with positive
progress in all regions. Sales volumes were also 6% higher.
  · Operating income was MSEK 1,071 (1,114) and income after tax MSEK 762 (804).
  · Earnings per share before and after dilution were SEK 21.90 (23.11).
  · Cash flow from operating activities was MSEK 803 (698).
  · The Net debt/Equity ratio was at year-end 25% (24%).
  · The Board of Directors proposes a cash dividend of SEK 10.00 per share
(10.00).
  · Prospects are unchanged since the assessment made in the Third-quarter
Interim Report. Uncertainty regarding the immediate future is significant. It is
uncertain how much the world's debt crisis will affect global industrial
activity in 2012. However, underlying long-term demand conditions appear
favourable, apart from southern Europe.

Höganäs, Sweden, 9 February 2012

Höganäs AB (publ)

 

Streamed press conference

Alrik Danielson, CEO and President, and Sven Lindskog, CFO, will present the
Interim Report in a conference call at 10:30 a.m. on 9 February 2012.

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.

 

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 9 February 2012.

 

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