Höganäs reports stable demand, indicates that initiatives in new segments are intensifying

October 26, 2010

In an Interim Report covering the period 1 January – 30 September 2010, Höganäs (STO:HOGAB) CEO Alrik Danielsson commented that the market for its metal powders remained positive in the quarter, and Höganäs had its best third quarter ever. But uncertainty regarding short-term demand conditions persists, mainly due to uncertainty regarding progress in Europe. Höganäs is maintaining its cost focus, and has succeeded in increasing production volumes sharply for limited extra costs. This, it was stated, puts Höganäs in a strong position for the future.

Danielsson continued, “Our initiatives on developing applications based on metal powder technology, what we call the ‘Power of Powder’ are intensifying. Events arranged in the third quarter included a seminar on vehicle electric motors in collaboration with the UK Magnetic Society, attracting some 100 delegates from around the world, representing customers, end-users and universities. We also delivered a full series of Somaloy®-based motor components, produced at our PoP Centre, to Oxford YASATM Motors Ltd for use in its pioneering high-performance motors for electric vehicles.”

In the third quarter 2010 (compared to corresponding period of previous year) net sales were MSEK 1,728 (1,193) in the quarter, up 45% year on year. Sales volumes were 26% higher. Demand conditions were better than in the corresponding period of the previous year, and largely unchanged on the second quarter of this year across all markets.

Operating income was MSEK 261 (142) and income after tax was MSEK 189 (102). The income improvement is mainly due to higher sales volumes. Earnings per share for the quarter were SEK 5.43 (2.94).

Cash flow from operating activities was MSEK 189 (287). Rising metal prices resulted in an increased need for working capital, which affected cash flow negatively in the quarter.

For the period 1 January – 30 September 2010 (compared to corresponding period of previous year) net sales were MSEK 5,059 (3,207) in the period, up 58% year on year. Sales volumes were 53% higher. Operating income was MSEK 876 (85) and income after tax was MSEK 642 (49). Earnings per share for the period were SEK 18.45 (1.41), cash flow from operating activities was MSEK 505 (726). In the period, the net debt/equity ratio multiple reduced to 29% from 43%.

Outlook

Overall, the outlook is unchanged compared to the assessment presented in the Interim Report for the second quarter. The market is strong in Asia and South America, while a gradual recovery, albeit at an uncertain rate, is expected in North America. However, Höganäs judges that underlying demand in Europe will remain weak

www.hoganas.com

In the latest issue of PM Review…

Download PDF

Extensive Powder Metallurgy industry news coverage, and the following exclusive deep-dive articles and reports:

  • Burgess-Norton and Amsted Automotive: How a legacy automotive supplier is growing with, not despite, electrification
  • Meeting sustainability demands in PM: High-temperature sintering of nickel- and copper-free powder mixtures for low alloyed PM parts
  • World PM2022: An overview of the status and trends in the global PM industry
  • A novel approach for the production of metal powders with tailored chemical compositions: Amazemet’s rePowder
  • Productivity, flexibility, reliability: SACMI’s new press technologies for the changing PM industry
  • Understanding the thermal properties of metal powders: Characterisation of powders using the Hot Disk technique
  • World PM2022: Views on the potential of Field Assisted Sintering for advanced materials

The latest news from the world of metal powders, delivered to your inbox

Don't miss any new issue of PM Review, and get the latest industry news. Sign up to our weekly newsletter.

Sign up

From the industry…

Discover our magazine archive…

The free-to-access PM Review magazine archive offers unparalleled insight into the world of Powder Metallurgy from a commercial and technological perspective through:

  • Reports on visits to leading PM part manufacturers, metal powder manufacturers and industry suppliers
  • Articles on technology and application trends
  • Information on materials developments
  • Reviews of key technical presentations from the international conference circuit
  • International industry news

All past issues are available to download as free PDFs or view in your browser.

 

Browse the archive

 

Looking for PM production equipment, metal powders, R&D support and more?

Discover suppliers of these and more in our
advertisers’ index and buyer’s guide, available in the back of PM Review magazine.

  • Powders & materials
  • Powder process, classification & analysis
  • PM products
  • Atomisers & powder production technology
  • Compaction presses, tooling & ancillaries
  • Sintering equipment & ancillaries
  • Post-processing
  • Consulting & toll sintering
Download PDF
Share via
Copy link