Interim report January - September 2010

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• Inflow of orders: SEK 6,086 million (6,423)

• Net sales: SEK 5,592 million (6,303)

• Operating earnings: SEK 410 million (310)

• Net earnings: SEK 293 million (211)

• Cash flow from operating activities after tax: SEK 501 million (978)

• Earnings per share: SEK 10.85 (7.81)

President and CEO Peter Aru:
“The inflow of orders rose by one percent during the first nine months of the year. In the third quarter, demand increased in some markets in Europe, while there were fewer project deals in the Group than during the corresponding period the previous year. During the first nine months of the year, the operating margin amounted to 7.3 percent compared with 4.9 percent. The inflow of orders is expected to increase in the fourth quarter compared with the corresponding period the previous year.”

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

Third quarter 2010
The inflow of orders amounted to SEK 1,931 million (2,033), which is unchanged compared with the previous year after adjustment for the effects of exchange rate movements. The inflow of orders increased in Europe and Latin America, while the inflow of orders in other markets was lower. Service sales were on a par with the previous year.

Net sales amounted to SEK 1,901 million (1,952), up 3 % adjusted for the effects of exchange rate movements.

Operating earnings amounted to SEK 194 million (109). Operating earnings were charged with costs of SEK 1 million (25) of a non-recurring nature. These costs are allocated as cost of goods sold of SEK 0 million (9) and sales and administrative expenses of SEK 1 million (16).

Period January to September 2010
During the first nine months of the year, the inflow of orders amounted to SEK 6,086 million (6,423), up 1 % after adjustment for the effects of exchange rate movements. The inflow of orders increased in eastern Europe, Latin America and Asia. In other markets, the inflow of orders was lower than during the corresponding period the previous year.

Net sales amounted to SEK 5,592 million (6,303), down 5 % adjusted for the effects of exchange rate movements.

Operating earnings amounted to SEK 410 million (310). Operating earnings were charged with costs of SEK 52 million (66) 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 (21) and selling and administrative expenses of SEK 11 million (45).

It is assessed that further adaptation of the organization will result in additional non-recurring costs of up to SEK 19 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.

Annual General Meeting
The Annual General Meeting will be held in Malmö, Sweden, on Monday, April 4 2011 at 5.00 p.m.

The nomination committee that has been appointed ahead of the 2011 Annual General Meeting consists of:
Claes Boustedt (chairman), L E Lundbergföretagen AB, Stockholm
Johan Ståhl, Lannebo funds, Stockholm
Björn Franzon, Swedbank Robur funds, Stockholm
Fredrik Lundberg, Chairman of Cardo’s board of directors

Proposals regarding election of members of the Board of Directors and the Board fee may be sent either to a member of nomination committee or via Cardo to be forwarded. In order for the nomination committee to be able to devote sufficient attention to proposals received, we recommend that proposals be submitted prior to the turn of the year.

Invitation to Financial Hearings today, November 12, at 10.00 a.m.
Cardo’s President and CEO Peter Aru will comment on the interim report during a conference call today at 10.00 a.m. Notification of intention to attend may be made at www.financialhearings.com or via e-mail to hearing@financialhearings.com. It will be possible to take part and ask questions via the telephone number +46 (0)8 5051 3972. 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 call will be held in Swedish.

Financial calendar
November 25 2010, Capital Market Day in Stockholm
February 4 2011, Report on Operations 2010
April 4 2011, Annual General Meeting in Malmö
May 5 2011, Interim Report January – March
August 16 2011, Interim Report January – June
November 3 2011, 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

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 SEK 9 billion and approximately 5,400 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.

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