Interim report January - September 2009

Interim report January - September 2009

Interim report for the nine months ended 30 September 2009

* Revenue for the quarter fell by 34 per cent at fixed exchange rates and by 29
per cent in Swedish kronor (SEK), and amounted to SEK 1,127 M (1,582). 
* The cost saving measures are proceeding according to plan.
* Despite continued low volumes, the Group posted a positive operating result of
SEK 51 M (318) for the quarter. Operating margin for the quarter was 4.5 per
cent (20.1).
* Revenue for the nine-month period fell by 34 per cent at fixed exchange rates
and amounted to SEK 3,658 M (4,911).
* Profit after tax for the nine-month period was SEK 83 M (733).
* Capital reductions contributed to a strong cash flow of SEK 574 M for the
nine-month period.
* Earnings per share for the nine-month period were SEK 0.57 (5.04).


Comments from the CEO

“Demand in virtually all of Seco Tools' markets remained very weak in the third
quarter. Aside from the traditional seasonal decrease, however, the sales rate
was somewhat higher than before the summer. This is most likely an effect of the
now completed inventory reductions among our end-customers and distributors.

All cost adaptations proceeded with satisfactory results during the quarter and
are expected to lower the Group's annual cost level by around SEK 600 M, of
which SEK 500 M will affect profit for the current year. Including the decrease
in temporary employees, our global workforce has been reduced by the equivalent
of more than 850 positions since the end of the third quarter last year.

Despite weak demand, Seco Tools succeeded in delivering a continued operating
profit. Operating margin for the third quarter was somewhat stronger than for
the second quarter and amounted to 4.5 per cent (20.1). The decrease compared to
the previous year is mainly attributable to the drop in both sales and
production volumes. The period's negative earnings growth has been somewhat
offset by the effects of the cost-cutting programmes. Continued reductions in
working capital during the quarter contributed to a sustained strong cash flow
of SEK 574 M (632) for the nine-month period. 

In spite of a stabilised market during the period, future development remains
uncertain. On the whole, we are currently seeing no signs of a near-term change
in the demand scenario,” says Kai Wärn, President and CEO of Seco Tools.



The information contained herein is subject to the disclosure requirements of
Seco Tools AB under the Swedish Securities Exchange and Clearing Operations Act
and/or the Financial Instruments Trading Act. This information was submitted for
publication on 30 October 2009, 7:45 a.m. CET.

For additional information contact Kai Wärn, President and CEO, (Tel: +46
223-401 10) or Patrik Johnson, CFO, (Tel: +46 223-401 20). E-mail can be sent to
investor.relations@secotools.com 

Previously published financial information can be found under “About
Seco/Investor Relations” on the Seco Tools website (www.secotools.com). Seco
Tools AB's corporate registration number is 556071-1060 and the company's
address is Seco Tools AB, SE-737 82 Fagersta, Sweden. The telephone number to
the Group head office is +46 223-400 00.