Interim report for the three months ended 31 March 2010

Interim report for the three months ended 31 March 2010

- Revenue for the quarter rose by 10 per cent at fixed exchange rates and by 1
per cent in Swedish kronor (SEK), and amounted to SEK 1,370 M (1,351). 

- Operating profit was SEK 220 M (95), equal to an operating margin of 16.1 per
cent (7.0).

- The cost-cutting programme contributed to a significantly improved operating
profit.

- Continued high rate of new product launches.

- Profit after tax was SEK 145 M (54). 

- Earnings per share for the three-month period were SEK 1.00 (0.37).


Comments from the CEO 
“Demand improved successively in virtually all of Seco Tools' markets during the
quarter compared to the end of 2009. Especially keen demand was noted in the
emerging markets of Asia and South America. Among the large mature markets, the
strongest performance was seen in the USA.

All in all, the outlook for continued growth in demand is deemed favourable,
among other things as an effect of inventory increases among our customers.

Last year's ambitious cost-cutting programmes continued to make a positive
contribution to the Group's earnings during the quarter. Overall, these
programmes have reduced Seco Tools' annual cost level by more than SEK 620 M.
Operating margin for the first quarter strengthened considerably over the
year-earlier period and reached 16.1 per cent (7.0). The improvement was
attributable to high sales, better capacity utilisation and the effects of the
cost-cutting programmes. However, foreign exchange losses had a dampening effect
on earnings growth.

The continued high level of ambition and activity in R&D during 2009 has enabled
Seco Tools to sustain a fast pace of new product launches. At the beginning of
the year we launched several important products that offer significant
improvements for our customers in terms of performance, precision and tool
life,” says Kai Wärn, President and CEO.

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