STOCKHOLM, Sweden, July 12, 2002 (PRIMEZONE) - Hoganas:
Highlights:
- Net sales MSEK 1,704 +3% - Income before tax MSEK 265 +13% - Operating margin 17.0% (15.7) - Equity/assets ratio 40% (41)
Market Situation
Hoganas turnover* increased by 3% to MSEK 1,704 (1, 661) during the first half of 2002. The Swedish krona was on the same level as in the corresponding period of the previous year. Sales in North America continued to increase substantially in the second quarter, largely as a result of increased market share. The trend in terms of volume was still weak in Europe.
The volume of sales (excluding semis) during the first six months of the year rose by 6% compared to 2001. Volume fell by 5% in Europe and by 7% in Japan. Volumes in the rest of Asia rose by 15%. Other Markets recorded a volume increase of over 30%.
Press powders recorded an increase in volume of 10%. The volume sold to European markets was down by 6%, while the volume on the Japanese market was up by 4%. On other Asian markets volumes rose by 22%. That figure includes an increase of 30% in Taiwan, 23% in South Korea, and in China by 16%. The increase on other markets was nearly 50%.
The volume of other iron powders decreased by 7%. The decline affected all markets except Other Markets, which increased by 5%. Sales of Coldstream powders increased by 13%.
Financial Position
Operating income in the first half of the year amounted to MSEK 290 (260). Other operating income and expenses included a net exchange gain of MSEK 10 (-48) from forward contracts. The operating margin for the period was 17.0% (15.7). The net result of the Group's financial income and expenses was MSEK -25 (-25). Cash flow before investments for the half-year was MSEK 449 (-127). Income before taxes amounted to MSEK 265 (235), an increase of MSEK 30. The equity-assets ratio amounted to 40% (41).
Acquisition
At the end of the second quarter Hoganas' stake in Hoganass India Ltd. amounted to 94%. The process of delisting the company from the stock exchange has been almost completed.
Investments
Investments in fixed assets by the Group during the period amounted to MSEK 149 (397).
Finances
The Group's net debt was reduced by MSEK 128 during the period. The debt-equity ratio was 87%.
Parent Company
Invoicing by the Parent Company during the period amounted to MSEK 1,128 (1,070), including MSEK 525 invoiced to Group companies. Income after financial income and expenses was MSEK 340 (202). Cash & Bank at June 30, 2002 totaled MSEK 164 (16), not counting unutilized overdraft facilities. Investments totaled MSEK 52 (77).
Outlook
The forecast previously given for the whole of 2002 still stands, viz. that income before taxes (excluding non-comparable items) is expected to be better than in 2001.
* As of 2002, bonuses to customers have been reclassified from being a cost and are instead booked as a deduction from turnover. This has reduced turnover by about 2% compared to 2001.
The full report including tables can be downloaded from the following link: http://reports.huginonline.com/866526/105592.pdf