STRONG GROWTH AND CONTINUED IMPROVED PERFORMANCE

• Inflow of orders: SEK 2,410 million (2,092)
• Net sales: SEK 2,079 million (1,812)
Operating earnings excluding restructuring costs: SEK 101 million (43)
• Restructuring costs relate to closure of production unit and amount to SEK 83 million
• Net earnings including restructuring costs: SEK 0 million (26)

The first quarter showed a continued positive trend. Both inflow of orders and net sales rose by 18% adjusted for the effects of exchange rate movements. Organic growth amounted to 15%. The strong trend relates to all divisions, with particularly good growth for Pulp & Paper Solutions. Europe enjoyed a good trend, especially the eastern regions. Latin America, the Middle East and Asia Pacific showed strong growth during the period.
Operating earnings improved to SEK 101 million (43) excluding restructuring costs of SEK 83 million attributable to the closure of a production plant in Germany within the Door & Logistics Solutions division.

RESULTS IN BRIEF
See complete report enclosed as pdf document where all tables and summaries can be found.
The report is also available at www.cardo.com

INFLOW OF ORDERS, NET SALES AND EARNINGS
During the first quarter, the inflow of orders amounted to SEK 2,410 million (2,092), up 18% after adjustment for the effects of exchange rate movements. Organic growth was 15%. Growth was good in Europe, particularly in the eastern regions. Other strong regions during the period were Latin America, the Middle East and Asia Pacific.
Net sales amounted to SEK 2,079 million (1,812), up 18% after adjustment for the effects of exchange rate movements. Organic growth was 15%.
Operating earnings excluding restructuring costs improved to SEK 101 million (43). All divisions showed a continued positive earnings trend. Pulp & Paper Solutions enjoyed a particularly large increase in sales, resulting in earnings improving strongly compared with the previous year.
Net earnings, including restructuring costs, amounted to SEK 0 million (26), which is equivalent to SEK 0.00 (0.87) per share.
Cash flow from operating activities was SEK 114 million (111) after tax, which is equivalent to SEK 3.80 (3.70) per share.

OUTLOOK
The outlook from the report on operations for 2006 still applies:
We assess that the market trend for Cardo’s products and services will be generally relatively favorable during 2007 thereby providing conditions for continued organic growth for the group as a whole. We expect the prices of raw materials to remain high and that there will be continuing difficulties in passing on price rises to the customers for the Door & Logistics Solutions and Residential Garage Doors divisions.


Invitation to conference call today, May 3, at 10.00 am
Cardo’s President and CEO Peter Aru will comment on the interim report during a conference call today, May 3, at 10.00 am CET. It will be possible to take part and ask questions via telephone number +46 (0)8 5052 0114. The conference may also be followed via a webcast through a link at www.cardo.com or www.financialhearings.com. The presentation slides will also be on view via the webcast. The conference will be held in Swedish.