Bong Interim report January-September 2008

“Despite slower demand, we delivered a significant improvement in earnings compared to the previous year,” says Bong’s President and CEO Anders Davidsson. “We are continuing our strenuous efforts to free up working capital and develop growth areas with higher value added, such as ProPac.”

• Net sales for the first nine months of 2008 are reported at SEK 1,429 million (1,474). On a like-for-like basis and at fixed exchange rates, net sales for the same period of 2007 amounted to SEK 1,433 million.

• Bong’s ProPac packaging venture showed continued rapid growth and made up 13% (10) of the Group’s total sales for the third quarter.

• Operating profit for the nine-month period improved to SEK 54 million (35) and profit after tax was SEK 12 million (-4). Diluted earnings per share amounted to SEK 0.91 (-0.27).

• Cash flow after investing activities for the nine-month period was SEK 57 million (-38).

• In response to declining demand, 46 employees in Germany and Scandinavia were made redundant in the third quarter and two envelope machines were sold. Parallel to this, Bong has adapted its inventories and production levels. The net cost of these measures amounted to approximately SEK 5 million, all of which was recognised in the third quarter.