Interim report on Q4 and full-year 2008 summary

(unaudited)

Tough end to a record year
• Organic order intake declined 19% following significant drop in world-wide demand.
 27% decline including cancellations, mainly in mining.
 Continued aftermarket growth in all business areas.
• Revenues up 12% to MSEK 19 731 (17 549), organic growth 3%.
• Operating profit reached MSEK 3 288 (3 361).
 Forceful actions to reduce capacity and costs; redundancy costs of MSEK 258 booked in the quarter.
 Adjusted operating margin at 18.0% (19.3)
 Positive currency effect of MSEK 350 compared to previous year.
• Profit before tax amounted to MSEK 3 508 (2 134).
 Includes an MSEK 939 tax-free capital gain.
• Profit for the period was MSEK 2 919 (1 376).
• Basic and diluted earnings per share were SEK 2.39 (1.12).
• Operating cash flow was MSEK 2 401 (926).
• The Board proposes a dividend of SEK 3.00 per share.

Near-term demand outlook
The current economic situation makes the outlook very uncertain but demand is expected to remain very weak in most industries and regions.

Measures to adapt capacity and costs
The fourth quarter’s actions to adapt capacity and costs to the rapidly deteriorating business environment led to a reduction of employees with about 1 350 in total, and MSEK 258 in redundancy costs. Further reductions will take place, affecting more than 3 000 people globally. Associated redundancy costs are estimated to about MSEK 400, most of which will be affecting the first quarter of 2009. The total reductions in work¬force are expected to give about MSEK 2 000 in annual savings.