In the report, the company says that conditions were better than in the corresponding period of the previous year in Asia and North America, but worse in Europe and South America. Net sales were MSEK 1808 (1869 in the previous year), down 3% year on year. Excluding the one-off deliveries to Hoeganaes Corporation (GKN) in the second quarter 2011, sales volumes were down 1% year on year.
Operating income was MSEK 285 (302) and income after tax was MSEK 202 (217). Lower sales volumes and lower currency hedging earnings had a negative impact on income, while price increases and savings measures had a positive effect.
From 1 January-30 June 2012, net sales were MSEK 3,621 (3,639), down 0.5% year on year. • Operating income was MSEK 567 (584) and income after tax was MSEK 405 (425).
Höganäs reports that recovery in South America and India is expected to take longer than previously expected; however, a significant downturn in global industrial activity in 2012 due to the global debt crisis still appears unlikely, despite fundamental imbalances persisting. Höganäs says that demand conditions are expected to be weaker than last year in Europe, but fairly favourable in most other regions of the world.
“In current market conditions, we are benefiting from our high exposure to markets outside Europe,” said CEO Alrik Danielsson. “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.
“We are retaining a fairly high rate of investment in research and development,” he added. “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.”