Höganäs Year-end report 2009 - Record volumes in Asia

CEO Alrik Danielsson comments on fourth quarter earnings: - The market performed robustly in the fourth quarter, especially in Asia. Sales volumes in China and India were the highest ever. However, the demand situation going into 2010 remains uncertain. Accordingly, the group has maintained a sharp focus on costs and cash flow. Meanwhile, we are making major initiatives in research and development, and are pleased by the response we have received from our customers and end-users to our new prototyping centre, the PoP (Power of Powder) Centre in Höganäs, which opened in October. The Centre got off to a flying start and will play a key role in Höganäs’ future progress, and in driving powder metallurgy to a new level.

1 January – 31 December 2009 (compared to previous year):

• Net sales were MSEK 4,571 (6,103) in the year, down 25% year on year. Sales volumes were down 23%.

• Operating income was MSEK 298 (527) and income after tax was MSEK 206 (394). The profit deterioration was mainly caused by lower sales volumes, especially during the first half-year.

• Earnings per share were SEK 5.92 (11.31).

• Cash flow from operating activities was MSEK 855 (564).

• The outlook for a progressive improvement in demand is unchanged since the third quarter. The market remains weak in most countries apart from China and India, but demand conditions improved through the year.