Commenting on the second quarter results for Swedish powder producer Höganäs AB, CEO Alrik Danielsson stated, “In current market conditions, we are benefiting from our high exposure to markets outside Europe. The volume recovery in Asia, our largest market, continued after a 2011 negatively affected by the tsunami and flooding. As expected, Europe was noticeably weaker due to decreasing domestic demand, and there appear to be few prospects of any rapid improvement.”
Second quarter 2012 net sales were MSEK 1,808, down 3% year on year. Demand conditions were better than in the corresponding period of the previous year in Asia and North America, but worse in Europe and South America. Operating income was MSEK 285 and income after tax was MSEK 202. Lower sales volumes and lower currency hedging earnings had a negative impact on income, while price increases and savings measures had a positive effect.
First half year results (1 January – 30 June 2012) disclosed net sales of MSEK 3,621, down 0.5% year on year. Operating income for this period was MSEK 567 and income after tax was MSEK 405.
“Against the background of the concerns and uncertainty prevailing on the markets, we are pleased with sales nearly comparable to the previous year, adjusted for the exceptional deliveries to Hoeganaes Corporation (GKN) in 2011. Our operating margin and cash flow remain satisfactory, despite a visibly negative currency effect.”
“We are retaining a fairly high rate of investment in research and development. Extensive work on the market launch of electromagnetic applications continues, and we made promising advances in the powder for metal injection moulding (MIM) segment in the quarter,” added Danielsson.
Posted by: Paul Whittaker, Editor ipmd.net, [email protected]