Interim report, January - September 1998

* Earnings after financial items and minority interest amounted to SEK 276 million (349). The third quarter accounted for SEK 130 million (127).

* Earnings per share after full tax stood at SEK 6.47 (8.28). Shareholders' equity per share amounted to SEK 70.51 (65.16).

* The forecast of whole-year earnings after financial items and minority interest on a par with last year (SEK 511 million) remains unchanged.

The Group's inflow of orders amounted to SEK 6,716 million (6,274), which for the current structure of the Group, after adjustment for the effects of exchange rate movements, is on a par with the corresponding period last year.

Invoiced sales rose to SEK 6,205 million (5,636). Adjusted for the effects of exchange rate movements, this was a rise of approximately 9 percent. Of this figure, company acquisitions accounted for 8 percentage points.

Operating earnings amounted to SEK 320 million (389), which is equivalent to an operating margin of 5.2 percent (6.9).

Earnings after financial items were SEK 250 million (343), equivalent to a profit margin of 4.0 percent (6.1). Group earnings after financial items and minority interest amounted to SEK 276 million (349). The third quarter accounted for SEK 130 million (127). The decline during the nine-month period is mainly attributable to Cardo Rail's earnings trend during the first half of the year. For the third quarter, Cardo Rail reported better earnings than for the corresponding period last year.

Earnings per share after full tax for the period amounted to SEK 6.47 (8.28).

The return on capital employed amounted to 13.8 percent (22.3) for the twelve-month period ended September 30. The return on shareholders’ equity during the same period was 14.3 percent (24.1). The change in return on capital employed is attributable both to the lower operating earnings and to company acquisitions carried through.