Report on operations 2009

Report on operations 2009

• Inflow of orders: SEK 8,424 million (9,455)
• Net sales: SEK 8,825 million (9,742)
• Operating earnings: SEK 529 million (941)
• Net earnings for the year: SEK 345 million (592)
• Cash flow from operating activities after tax: SEK 1,356 million (1,004)
• Earnings per share: SEK 12.78 (18.10) 2)
• Proposed dividend: SEK 9.00 (9.00)


President and CEO Peter Aru:
“Cardo performed relatively well during 2009 and succeeded in changing its
product and market mix in a very difficult market situation. In the fourth
quarter, moreover, the Group succeeded in exceeding its operating margin
compared with 2008, adjusted for costs of a non-recurring nature and impairment
of real estate. With a strong cash flow and low net interest bearing debt, the
starting position ahead of 2010 is good, even though there remains uncertainty
concerning the economic situation.”

Results - complete report 
Please see the enclosed pdf document for the complete report where all tables
and summaries are found. 
The report is available at www.cardo.com

Fourth quarter 2009
The inflow of orders amounted to SEK 2,001 million (2,296), down 12% after
adjustment for the effects of exchange rate movements. The divisions Pulp &
Paper Solutions and Residential Garage Doors show an increased inflow of orders
and the trend in Asia-Pacific remained good. 

Net sales amounted to SEK 2,522 million (3,033), down 19% adjusted for the
effects of exchange rate movements. 

Operating earnings amounted to SEK 218 million (456). Operating earnings were
charged with costs of a non-recurring nature of SEK 133 million to adapt the
organization to the prevailing demand, allocated as cost of goods sold of SEK 40
million and selling and administrative expenses of SEK 93 million. During the
quarter, cost of goods sold was also charged with impairment of real estate of
SEK 36 million.

Full year 2009
The inflow of orders amounted to SEK 8,424 million (9,455), down 18% after
adjustment for the effects of exchange rate movements. The inflow of orders
decreased in all markets except Asia-Pacific. During the year, price competition
was particularly significant within the divisions Door & Logistics Solutions and
Wastewater Technology Solutions. 

Net sales amounted to SEK 8,825 million (9,742), down 16% adjusted for the
effects of exchange rate movements. The service share of net sales amounted to
38% (33) for the full year.

Operating earnings amounted to SEK 529 million (941). Operating earnings were
charged with costs of a non-recurring nature of SEK 199 million to adapt the
organization to prevailing demand, allocated as cost of goods sold of SEK 61
million and selling and administrative expenses of SEK 138 million. Cost of
goods sold was charged with a further SEK 36 million for impairment of real
estate.

Costs of a non-recurring nature will affect cash flow by a total of SEK 173
million, whereof SEK 66 million affected 2009. 

The savings effect during 2009 amounted to SEK 75 million and the full annual
savings effect of approximately SEK 220 million is expected from the third
quarter of 2010. 

OTHER MATTERS
Changed divisional structure 2010
Cardo's present four divisions are being coordinated into two under the
divisional names Cardo Entrance Solutions and Cardo Flow Solutions. Reporting
will be carried out under the new divisional names as of the first quarter 2010.
 
Operations are being coordinated by integrating the present divisions Door &
Logistics Solutions and Residential Garage Doors into a single division, Cardo
Entrance Solutions. The division Wastewater Technology Solutions and the pump
business within Pulp & Paper Solutions are being coordinated in the division
Cardo Flow Solutions. The head of the Cardo Entrance Solutions division is Ove
Bergkvist and the head of Cardo Flow Solutions is Peter Aru. The measuring
instruments business within the present Pulp & Paper Solutions will constitute
an independent unit within the Group. The head of the unit is Patrik Stolpe.

 
THE NOMINATION COMMITTEE'S PROPOSAL FOR THE BOARD OF CARDO
Cardo's nomination committee proposes re-election of the Board members Fredrik
Lundberg, who is also proposed for re-election as Chairman of the Board, Peter
Aru, Johnny Alvarsson, Carina Malmgren Heander, Tuve Johannesson, Ulf Lundahl
and Lennart Nilsson and election of Katarina Martinson and Krister Mellvé as new
members of the Board. 
Anders Rydin has declined re-election as a member of the Board.

Katarina Martinson is 28 years old and a graduate business administrator. She
has held posts that include that of analyst at International Strategy &
Investment Group, New York, and Strategas Research Partners, New York. Since
2009, she has been working in asset management and is a deputy member of the
board of L E Lundbergföretagen AB and a member of the board of AB Lorentzen &
Wettre.

Krister Mellvé is 60 years old and a graduate business administrator. For the
past 20 years he has been working for the German company Robert Bosch, holding
posts that include that of president in Sweden, Australia and South Korea.

ANNUAL GENERAL MEETING
The Annual General Meeting will be held in Malmö, Sweden, on Wednesday, April 7
2010 at 5.00 p.m.

ANNUAL REPORT
The annual report for 2009 will be presented during the week beginning March 15
2010, on Cardo's website at www.cardo.com. Printed annual reports will be sent
to those shareholders and others who have specially indicated that they wish to
receive this publication by ordinary mail.


Malmö, Sweden, February 4 2010
Cardo AB (publ)
Board of Directors


This report has not been subjected to special examination by the Company's
auditors.


INVITATION TO CONFERENCE, FINANCIAL HEARINGS, IN STOCKHOLM TODAY FEBRUARY 4 AT
10.00 A.M.
Cardo's President and CEO Peter Aru will comment on the report on operations at
a conference today at 10.00 a.m. at Operaterassen in Stockholm. 
Notification of intention to attend may be made at www.financialhearings.com or
via e-mail to 
hearing@financialhearings.com. It will also be possible to take part and ask
questions via telephone number +46 (0)8 505 137 86. The conference may also be
followed via a webcast at www.cardo.com or www.financialhearings.com, where you
will also be able to listen and see the presentation slides afterwards. The
conference will be held in Swedish. 


Financial calendar 2010
April 7, Annual General Meeting in Malmö
May 4, Interim Report January - March
August 13, Interim Report January - June
November 12, Interim Report January - September

For further information, please contact:
Peter Aru, President and CEO, tel +46 10 47 47 401
Ulf Liljedahl, CFO and Executive Vice President, tel +46 10 47 47 402
Maria Bergving, SVP Communications & Investor Relations, 
tel +46 10 47 47 405, maria.bergving@cardo.com



Cardo is a world-leading supplier of industrial doors and logistics systems,
wastewater treatment systems, process equipment for the pulp and paper industry
and garage doors. With sales of almost SEK 9 billion and approximately 5,500
employees worldwide, Cardo delivers solutions that help to solve some the
toughest challenges of our time in the fields of water, transportation and
energy. Corporate headquarters are located in Malmö, Sweden.