Hoganas AB : Höganäs Interim Report 1 January - 30 June 2012

Regulatory News:

- Stronger in Asia and weaker in Europe

CEO Alrik Danielsson comments on second quarter earnings:

"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. 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.

Second quarter 2012 (compared to corresponding period of previous year)

-- Net sales were MSEK 1,808 (1,869), 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. Excluding the one-off deliveries to Hoeganaes Corporation (GKN) in the second quarter 2011, sales volumes were down 1% year on year. Including these one-off deliveries, sales volumes were down 9%.

-- 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.

-- Earnings per share before and after dilution for the quarter were SEK 5.81 (6.24).

-- Cash flow from operating activities was MSEK 206 (247).

1 January - 30 June 2012 (compared to corresponding period of previous year)

-- Net sales were MSEK 3,621 (3,639), down 0.5% year on year. Excluding the one-off deliveries to Hoeganaes Corporation (GKN) in 2011, sales volumes were down 2% year on year. Including these one-off deliveries, sales volumes were down 6%.

-- Operating income was MSEK 567 (584) and income after tax was MSEK 405 (425).

-- Earnings per share before and after dilution for the period were SEK 11.64 (12.21).

-- Cash flow from operating activities was MSEK 530 (263).

-- The net debt/equity ratio was 24% at the end of the period, compared to 25% at the beginning of the financial year.

-- Prospects have altered marginally compared to the assessment made in the First-quarter Interim Report, inasmuch as the recovery in South America and India is expected to take longer than previously expected. A significant downturn in global industrial activity in 2012 due to the global debt crisis still appears unlikely, despite fundamental imbalances persisting. Höganäs judges that demand conditions are expected to be weaker than last year in Europe, but fairly favourable in most other regions of the world.

Höganäs, Sweden, 20 July 2012

Höganäs AB (STO:HOGAB) (publ)

Streamed press conference

Alrik Danielson, CEO and President, and Sven Lindskog, CFO, will present the Interim Report in a conference call at 10:30 a.m. on 20 July 2012.

The press conference will be streamed at: www.hoganas.com/Investor Relations/Conference Call.

It is open to journalists, analysts and investors.

Participants are welcome to call on [phone], [phone] or [phone].

The presentation is available at www.hoganas.com.

NB:

This information is mandatory for Höganäs to publish pursuant to the Swedish Securities Markets Act. The information was submitted for publication at 9 a.m. on 20 July 2012.

About Höganäs

Höganäs AB is the world's leading producer of iron and metal powders. Building on its clear vision of the possibilities of powder to improve efficiency, the consumption of resources and environmental impact across a raft of segments, the company has developed in-depth application skills.

Thus Höganäs can help create the automotive components, white goods, and products for water and exhaust treatment products of the future in collaboration with its customers. Founded in 1797, the company had sales of MSEK 7,081 in 2011, and is quoted on NASDAQ OMX Stockholm's Mid Cap List.

For more information, visit our website: www.hoganas.com.

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Höganäs AB
Alrik Danielson, CEO and President, [phone]
or
Sven Lindskog, Chief Financial Officer, [phone]