Höganäs reports continued strong sales and announces new mixing plant in Asia
October 26, 2011
Swedish metal powder producer, Höganäs AB, has announced strong third quarter earnings, with net sales for the quarter up 5% year on year, and sales volumes 8% higher. For the period of 1 January – 30 September 2011 the company reported net sales of MSEK 5,449 (5,059), 8% up on the previous year and sales volume up 9%.
Höganäs stated that in the third quarter demand conditions were better than in the corresponding period of the previous year in America, while demand was weaker in Europe. In Asia, demand improved gradually during the quarter, as the effects of the Japanese tsunami disaster tapered off.
As a result of the accident at Hoeganaes Corporation’s (GKN’s) plant in the US in May, deliveries of approximately 6,000 tons of finished and semi-finished products were made to them in the third quarter. Excluding these deliveries, sales volumes were up 3% on the previous year.
Alrik Danielsson, CEO, stated “Höganäs continues to return solid growth and high profitability. The third quarter featured a recovery in Asia after the Japanese disaster. Operating margin was consistent with the previous year and our long-term objectives, despite the negative effect of a stronger Swedish krona.”
“Höganäs already has a leading position in Asia, and to position ourselves even better to benefit from the growth potential in Asia, we have taken a decision to build a mixing plant there. This is a long-term investment that will enhance our ability to deliver differentiated customer solutions with significantly shorter lead-times. The project starts up in the fourth quarter and is scheduled for completion at year-end 2012,” continued Danielsson.
Edited by: Paul Whittaker, Editor ipmd.net, [email protected]
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