"We are benefiting from our strong position on emerging markets, as volume growth in Europe has not been as high,” said CEO Alrik Danielsson. “Sales volumes in China and India reached new record levels in the quarter. In Korea, we made a breakthrough on the market for connecting rods as one major customer started production of powder-forged connecting rods made from a unique chromium alloyed Astaloy material, produced by Höganäs.
“The year as a whole exceeded our expectations by a good margin. The downturn in Europe late in the year was expected, and although uncertainty regarding demand conditions for the short term persists, we are looking to the future with confidence. Höganäs advanced its position in 2010.”
Net sales in Q4 were MSEK 1,612, compared to 1,364 in Q4 2009, up 18% year on year. Sales volumes were 10% higher. Operating income was MSEK 238, compared to 213 and income after tax was MSEK 162 (157). Earnings per share for the quarter were SEK 4.66 (4.50).
Over the whole of 2010, net sales were MSEK 6,671 compared to 4,571 in 2009, up 46% year on year, and sales volumes were 40% higher.
Net sales in the components sector for the year were MSEK 5,046, up 53% year on year. The net sales increase was mainly caused by higher sales volumes, at +43%. In the consumables sector, which represents some 30% of consolidated sales, net sales for the period were MSEK 1,625, a 27% increase on 2009.
Höganäs says that the market is expected to remain strong in Asia and South America, while a gradual recovery, albeit at an uncertain rate, is expected in North America. However, underlying demand in Europe will remain weak.