Interim report, January - June 2010

Interim report, January - June 2010

• Inflow of orders: SEK 4,155 million (4,391)

• Net sales: SEK 3,691 million (4,350)

• Operating earnings: SEK 216 million (202)

• Net earnings: SEK 143 million (127)

• Cash flow from operating activities after tax: SEK 343 million (581)

• Earnings per share: SEK 5.29 (4.71)

President and CEO Peter Aru:
“After a weak start to the year, the inflow of orders increased during
the second quarter. All markets showed a positive trend, but the trend
was weaker in the European market than in other regions. We compensated
for the weaker market trend and strengthened our operating earnings and
operating margin. Our operating margin amounted to 5.9 percent during
the first six months of the year compared with 4.6 percent during the
corresponding period the previous year. During the quarter, the
restructuring program that was initiated during 2009 led to savings of
SEK 75 million compared with the second quarter 2009, and with this the
full annual savings effect of SEK 220 million has been achieved. The
organic inflow of orders is expected to increase in 2010.”

 

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 (http://www.cardo.com)

Second quarter 2010
During the second quarter, the inflow of orders amounted to SEK 2,208
million (2,172), up 9% after adjustment for the effects of exchange rate
movements. The inflow of orders showed a positive trend in all markets.

Net sales amounted to SEK 1,962 million (2,213), down 5% adjusted for
the effects of exchange rate movements.

Operating earnings amounted to SEK 159 million (141). Operating earnings
were charged with costs of SEK 51 million (26) of a non-recurring
nature, principally to adapt production activities in the Cardo Flow
Solutions division. These costs are allocated as cost of goods sold of
SEK 41 million (3) and selling and administrative expenses of SEK 10
million (23).

Period January to June 2010
During the first six months of the year, the inflow of orders amounted
to SEK 4,155 million (4,391), up 1% after adjustment for the effects of
exchange rate movements. During the period, demand was negative in
western Europe, while other markets showed a positive trend.

Net sales amounted to SEK 3,691 million (4,350), down 9% adjusted for
the effects of exchange rate movements.

 Operating earnings amounted to SEK 216 million (202). Operating
earnings were charged with costs of SEK 51 million (41) of a
non-recurring nature, principally to adapt production activities in the
Cardo Flow Solutions division. These costs are allocated as costs of
goods sold of SEK 41 million (12) and selling and administrative
expenses of SEK 10 million (29).

It is assessed that further adaptation of the organization will result
in additional non-recurring costs of up to SEK 20 million during the
remainder of the year. It is expected that the full savings effect will
be achieved from the second quarter of 2011. In all, the measures are
expected to provide annual savings of approximately SEK 35-40 million.

 

Invitation to Financial Hearings today, August 13, at 10.00 a.m.
Cardo's President and CEO Peter Aru will comment on the interim report
at a conference today at 10.00 a.m. at Operaterassen in Stockholm.
Notification of intention to attend may be made via e-mail to
hearing@financialhearings.com or at
www.financialhearings.com (http://www.financialhearings.com/). It will
be possible to take part and ask questions via telephone number +46 (0)8
5051 3786. The conference may also be followed via a webcast at
www.cardo.com or
www.financialhearings.com (http://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
November 12, Interim Report January - September

For further information, please contact:
Peter Aru, President and CEO, tel +46 10 4747 401
Ulf Liljedahl, CFO and Executive Vice President, tel +46 10 4747 402
Maria Bergving, SVP Communications and Investor Relations, tel +46 10
4747 405, maria.bergving@cardo.com (maria.bergving@cardo.com)