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Höganäs makes profit v volume decision in Q1
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Höganäs makes profit v volume decision in Q1 HÖGANÄS made a strong overall start to the year with 5 per cent volume growth in the first quarter, and reported pre-tax income up 11 per cent against the same period a year ago. But while the group’s components division pushed ahead, the consumables area was in the doldrums. Gross income was up 8 per cent against Q1 2007 with price increases being imposed in all markets during the period. However, Höganäs was unfavourably affected by the weak US dollar and lower metal inventory gains. Net sales were SEK 1583 million, a 12 per cent increase, of which 5 per cent was attributable to volume growth. The balance of the higher turnover was due to price increases over and above
metal price-related upward adjustments. Höganäs’ volume growth remained robust in Asia and North and South America. Demand was healthy, apart from the North American automotive market, and Höganäs continued to win market share. In Europe, by comparison, pressure created by product price rises was compounded by the strength of the Euro. This resulted in pressure on Höganäs’ sales volumes during Q1. The group has two business areas – components and consumables. They had very different storied to tell at the end of the first quarter. In components, nets sales boomed and at SEK 1190 million were 17 per cent ahead of last year. The picture was even
brighter in terms of operating income which, at SEK 142 million, was 39 per cent ahead of Q1 2007. Operating margins were 11.9 per cent. But it was a different story in consumables, where net sales of SEK 393 million were SEK 4 million or 1 per cent down on 2007. While sharp volume gains in Q4 2007 go some way to explain the poor result, Höganäs admits that it prioritised profitability before volume growth. Operating income was slashed by more than a third to SEK 41 million. Operating margins, however, improved significantly to 10.4 per cent. • Höganäs last month sold SEK 35 million worth of carbon dioxide emission rights.
Squeezing them in
THE Technology Days staged by German injection moulding specialists Arburg at their Lossburg headquarters (3 – 5 April) attracted more than 4000 visitors from 44 nations.
4
MPR May 2008
metal-powder.net
Höganäs makes profit v volume decision in Q1 HÖGANÄS made a strong overall start to the year with 5 per cent volume growth in the first quarter, and reported pre-tax income up 11 per cent against the same period a year ago. But while the group’s components division pushed ahead, the consumables area was in the doldrums. Gross income was up 8 per cent against Q1 2007 with price increases being imposed in all markets during the period. However, Höganäs was unfavourably affected by the weak US dollar and lower metal inventory gains. Net sales were SEK 1583 million, a 12 per cent increase, of which 5 per cent was attributable to volume growth. The balance of the higher turnover was due to price increases over and above
metal price-related upward adjustments. Höganäs’ volume growth remained robust in Asia and North and South America. Demand was healthy, apart from the North American automotive market, and Höganäs continued to win market share. In Europe, by comparison, pressure created by product price rises was compounded by the strength of the Euro. This resulted in pressure on Höganäs’ sales volumes during Q1. The group has two business areas – components and consumables. They had very different storied to tell at the end of the first quarter. In components, nets sales boomed and at SEK 1190 million were 17 per cent ahead of last year. The picture was even
brighter in terms of operating income which, at SEK 142 million, was 39 per cent ahead of Q1 2007. Operating margins were 11.9 per cent. But it was a different story in consumables, where net sales of SEK 393 million were SEK 4 million or 1 per cent down on 2007. While sharp volume gains in Q4 2007 go some way to explain the poor result, Höganäs admits that it prioritised profitability before volume growth. Operating income was slashed by more than a third to SEK 41 million. Operating margins, however, improved significantly to 10.4 per cent. • Höganäs last month sold SEK 35 million worth of carbon dioxide emission rights.
Squeezing them in
THE Technology Days staged by German injection moulding specialists Arburg at their Lossburg headquarters (3 – 5 April) attracted more than 4000 visitors from 44 nations.
4
MPR May 2008
metal-powder.net