Report on operations 2010
• Inflow of orders: SEK 8,113 million (8,424)
• Net sales: SEK 7,973 million (8,825)
• Operating earnings: SEK 843 million (529)
• Net earnings: SEK 598 million (345)
• Cash flow from operating activities after tax: SEK 872 million (1,416)
• Earnings per share: SEK 22.15 (12.78)
• Proposed dividend: SEK 10.00 (9.00)
President and CEO Peter Aru:
“The inflow of orders rose by three percent in 2010. Demand increased in the fourth quarter with North America and Asia enjoying a particularly good trend. During the year, we completed our projects to make our business more efficient, further developed our sales strategy and improved the supply chain. We also launched several new products and solutions. The operating margin improved during the year to 10.6 percent compared with 6.0 percent in 2009.”
Results - complete report
Please see the enclosed pdf document for the complete report where all tables and summaries are found.
The report is available at www.cardo.com
Offer from ASSA ABLOY
On December 13 2010, ASSA ABLOY AB announced a public offer to the shareholders of Cardo to transfer all of their shares in Cardo to ASSA ABLOY for a payment of SEK 420 in cash for each share in Cardo. According to the press release whereby the offer was announced, most of the major shareholders in Cardo, including L E Lundbergföretagen AB (publ), together holding the equivalent of approximately 63.6 percent of the shares in Cardo, have entered into agreements with ASSA ABLOY to sell their shares in Cardo to ASSA ABLOY. The transfers are, as is the consummation of the offer, conditional only on the necessary approvals being obtained from the relevant competition authorities. According to the adjusted timetable announced by ASSA ABLOY on February 2 2011, the acceptance period is expected to commence on February 10 and end on March 11 2011. Settlement is expected to commence on March 18 2011.
Fourth quarter 2010
The inflow of orders amounted to SEK 2,027 million (2,001), up 8 % after adjustment for the effects of exchange rate movements. During the fourth quarter, the inflow of orders rose in all markets except the Middle East. The rise was greatest in North America and Asia. Service sales were on a par with the previous year.
Net sales amounted to SEK 2,380 million (2,522), unchanged compared with the previous year adjusted for the effects of exchange rate movements.
Operating earnings amounted to SEK 433 million (218). Operating earnings were charged with costs of a non-recurring nature of SEK 10 million (169). These costs are allocated as cost of goods sold of SEK 0 million (76) and selling and administrative expenses of SEK 10 million (93). Operating earnings for 2010 include a capital gain on the disposal of a piece of real estate in the Cardo Entrance Solutions division amounting to SEK 14 million.
Full year 2010
The inflow of orders amounted to SEK 8,113 million (8,424), up 3 % after adjustment for the effects of exchange rate movements. The inflow of orders rose in all markets except for the Middle East. The rise was greatest in Latin America and Asia.
Net sales amounted to SEK 7,973 million (8,825), down 4 % adjusted for the effects of exchange rate movements.
Operating earnings amounted to SEK 843 million (529). Operating earnings were charged with costs of a non-recurring nature of SEK 62 million (235), principally to adapt production activities in the Cardo Flow Solutions division. These costs are allocated as cost of goods sold of SEK 41 million (97) and selling and administrative expenses of SEK 21 million (138). The savings effect amounted to approximately SEK 10 million in 2010, and it is expected that a full annual savings effect of SEK 25-30 million will be achieved from the second quarter of 2011. The restructuring costs fully impact cash flow, whereof SEK 10 million was charged to 2010.
Operating earnings for 2010 also include a capital gain of SEK 14 million on the disposal of a piece of real estate in the Cardo Entrance Solutions division.
The nomination committee’s proposal for the board of Cardo
With regard to the public offer to the shareholders in Cardo that ASSA ABLOY announced on December 13 2010, the nomination committee has let it be known that its proposal for the board of Cardo will be presented on a later occasion, but no later than in connection with the Annual General Meeting 2011.
Proposed dividend
The Board proposes declaring a dividend to the shareholders of SEK 10.00 (9.00) per share with the record day being April 7 2011. This dividend requires a total of SEK 270,000,000. Should the Annual General Meeting resolve on dividend in accordance with the Board’s proposal, the price of SEK 420 per share that ASSA ABLOY has offered the shareholders in Cardo, within the framework of the public offer that ASSA ABLOY announced on December 13 2010, will be reduced by an equivalent amount per share.
Annual General Meeting
The Annual General Meeting will be held in Malmö, Sweden, on Monday, April 4 2011 at 5.00 p.m.
Annual report
The annual report for 2010 will be presented during the week beginning March 14 2011, on Cardo’s website at www.cardo.com. Printed annual reports will be sent to those shareholders and others who have specially indicated that they wish to receive this publication by ordinary mail.
Invitation to conference today February 4 at 10.00 a.m.
Cardo’s President and CEO Peter Aru will comment on the report on operations at a conference today at 10.00 a.m. at Operaterrassen in Stockholm. Notification of intention to attend may be made at www.financialhearings.com or via e-mail to hearing@financialhearings.com. It will also be possible to take part and ask questions via telephone number +46 (0)8 5051 3794. The conference may also be followed via a webcast at www.cardo.com or www.financialhearings.com, where you will also be able to listen and see the presentation slides afterwards. The conference will be held in Swedish.
Financial calendar 2011
April 4, Annual General Meeting in Malmö
May 5, Interim Report January – March
August 16, Interim Report January – June
November 3, Interim Report January - September
For further information, please contact:
Peter Aru, President and CEO, tel +46 10 4747 401
Ulf Liljedahl, CFO and Executive Vice President, tel +46 10 4747 402
Maria Bergving, SVP Communications and Investor Relations,
tel +46 10 4747 405, maria.bergving@cardo.com
Cardo is a world-leading supplier of industrial doors and logistics systems, wastewater treatment systems, process equipment for the pulp and paper industry and garage doors. With sales of more than SEK 8 billion and approximately 5,400 employees worldwide, Cardo delivers solutions that help to solve some the toughest challenges of our time in the fields of water, transportation and energy. Corporate headquarters are located in Malmö, Sweden.
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