AAK Interim Report, First Quarter, 2010

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First quarter 2010

• Operating profit at SEK 178 million was up 13 percent from SEK 157 million last year.
• Earnings per share was SEK 2.79 (1.59). Including the IAS adjustment and non-recurring items, earnings per share was SEK 3.10 (2.03).
• Positive cash flow from operating activities before investments amounted to SEK 315 million (22).
• Net sales were at SEK 3,510 million (4,223).

Future prospects
(unchanged except for the added third  paragraph in bold below)

AAK is today a company with a stronger balance sheet and a good balance between the business areas. The cost rationalisation programme and the working capital improvement project are being executed according to plan.

Volumes for speciality products are expected to continue to increase in Food Ingredients as well as Chocolate & Confectionery Fats. There remains, however, a general uncertainty about the impact of excess supply capacity in the industry and about lower demand as a consequence of the global recession.

Short term volume growth will not compensate for the reduction in margins arising from this excess capacity.

Despite some market uncertainty AAK sees growth opportunities in all business areas. Organic growth for speciality products, in combination with a selective acquisition strategy, is our way forward.