Gunnebo Year-end Release 2006

Fourth quarter 2006

 The order intake during the quarter rose by 1% to MSEK 1,714(1,705), with organic growth amounting to 2%. Invoiced sales increased by 4% to MSEK 1,941 (1,868). Organic growth in invoiced sales was 6%.
 The result after financial items but before items affecting comparability was a profit of MSEK 94 (138); after such items it was a loss of MSEK 25 (profit 4).
 Measures relating to the Gunnebo One Company integration project are proceeding in all essentials as planned. However, some productivity losses also affected the fourth quarter result.
 Net cost items affecting comparability amounted to MSEK 119 (cost 134), consisting of costs associated with the Gunnebo One Company integration project, the closure of a factory in Spain and a capital gain on a property sale in Spain.
 The result after tax was a loss of MSEK 7 (loss 28).
 The loss per share amounted to SEK 0.15 (loss 0.65). Excluding items affecting comparability earnings per share amounted to SEK 1.70 (1.95).
 The operating cash flow amounted to MSEK 295 (275).

January-December 2006

 A new, customer-oriented organisation was introduced with effect from 1 January 2006. The re-organisation project, which involved far-reaching changes, was largely completed by the end of 2006.
 The order intake for the period increased by 2% to MSEK 6,762 (6,658). Organic growth was 1%. Invoiced sales rose by 4% to MSEK 6,727 (6,477). Organic growth in invoiced sales was 4%.
 The result after financial items but before items affecting comparability was a profit of MSEK 127 (238); after such items it was a loss of MSEK 116 (profit 33).
 Net cost items affecting comparability amounted to MSEK 243 (cost 205), consisting largely of costs associated with the Gunnebo One Company integration project, stock write-downs, the closure of a factory in Spain and capital gains on property sales in India, Canada and Spain.
 The result after tax was a loss of MSEK 128 (loss 97).
 The loss per share amounted to SEK 2.90 (loss 2.20). Excluding items affecting comparability earnings per share amounted to SEK 1.85 (3.75).
 The operating cash flow amounted to MSEK 196 (325).
 Proposed dividend of SEK 1.60 per share (1.60).

Outlook for 2007

 The consolidated operating result is expected to be significantly better than the previous year’s result, but in the light of developments in 2006 and a slight delay to the Gunnebo One Company integration project it is estimated that it will not be possible to achieve the company’s long-term financial targets in full during the 2007 financial year.

GUNNEBO AB (publ)
Group Communications

For further information, please contact:
Göran Gezelius, President & CEO Gunnebo AB, tel. +46 31 83 68 00, or
Janerik Dimming, SVP Group Communications Gunnebo AB, tel. +46 31 83 68 03,
mobile:+46 705 83 68 03, or e-mail janerik.dimming@gunnebo.com


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