Interim report, January - June 1998

· Earnings after financial items and minority interest amounted to SEK 146 million (222). The fall in earnings is mainly attributable to Cardo Rail, which is currently undergoing extensive restructuring.

· Earnings per share after full tax stood at SEK 3.79 (5.26) and shareholders' equity per share at SEK 67.48 (62.44).

· For the whole year 1998, Group earnings after financial items and minority interest are expected to be on a par with last year (SEK 511 million).

The Group's inflow of orders amounted to SEK 4,528 million (4,195), which adjusted for the effects of exchange rate movements is an increase of approximately 2 percent for the current structure of the Group.

Invoiced sales rose to SEK 4,058 million (3,795). Adjusted for the effects of exchange rate movements, this was a rise of approximately 8 percent. Company acquisitions accounted for almost the entire increase.

As forecast in the Interim Report, January - March 1998, earnings for the first half of the year were lower than for the corresponding period last year. Operating earnings amounted to SEK 167 million (256), which is equivalent to an operating margin of 4.1 percent (6.7).

Earnings after financial items were SEK 119 million (225), providing a profit margin of 2.9 percent (5.9). Group earnings after financial items and minority interest amounted to SEK 146 million (222). The fall in earnings is mainly attributable to lower earnings for Cardo Rail due to a too high level of costs and disruption of production in those units affected by the restructuring measures currently in progress. As a result of this, Cardo Rail's earnings have been charged with provisions amounting to approximately SEK 35 million.

The earnings, including the effects of acquisition, of the garage-door company Normstahl, which was acquired by Cardo Door at the turn of the year, have adversely affected earnings by approximately SEK 15 million. Normstahl normally experiences strong seasonal variations and has historically generated its entire earnings during the second half of the year. Normstahl's operating earnings for the first half of the year were roughly on a par with those for the corresponding period last year.

Earnings per share after full tax for the period amounted to SEK 3.79 (5.26).

The return on capital employed was 13.8 percent (24.0) for the twelve-month period ended June 30. The return on shareholders’ equity during the same period was 15.2 percent (25.1). The change in return on capital employed is attributable both to the lower operating earnings and to company acquisitions carried through.