That was reflected in the company’s SEK 341 million operating income – 15 per cent up year on year. However cash flow from operating activities, at SEK 88 million, was adversely affected by higher metal prices, particularly nickel. Höganäs said that its North American subsidiary continued to expand sales volumes “despite negative market progress”.

Net sales were SEK 2 931 million in the first half-year, a 12 per cent increase. The higher turnover was due to larger volumes, price increases and change in product mix. Currency effects resulting from a stronger Swedish Krona also exerted a 6 per cent negative effect. Volume growth was positive in all markets apart from Japan.

Volumes in Japan were somewhat weaker than the previous year due to customers’ operations being relocated from the country, and reduced volumes within the low value product Hot Bags. Metal powder sales to the Japanese Components segment were consistent with the previous year. In North America, Höganäs’ sales volumes increased despite car sales and car production declining year on year. The European market made positive progress. Operating income was SEK 363 million (SEK305 million) in the first half-year.