1st Quarter 2007

Sales amounted to MSEK 2 060 (2 076). Sales rose 5% after adjusting for currency exchange rates. Order intake amounted to MSEK 2 170 (2 119). This increase amounted to 7% after adjusting for currency exchange rates.

Earnings after tax totaled MSEK 47 (75). Earnings per share totaled SEK 2.12 (3.37).

Operating income totaled MSEK 90 (123). The operating margin was 4.3% (5.9). The decline in earnings is attributable mainly to the CVS Division, where operating income declined by MSEK 22.

Earnings for CVS increased compared with the previous quarter, while earnings for the Garphyttan Wire Division decreased.

Return on capital employed (rolling 12 months) was 10.4% (12.1).

Strong demand in Europe and deliveries of new products offset the decline in sales in North America.

The acquisition of Runguang Hydraulics, one of the leading suppliers of hydraulics products to the Chinese construction market, has been completed. The company will initially have annual sales of roughly MSEK 130. The company will be consolidated as of 1 April 2007

For additional information, please contact President and Group CEO Joakim Olsson, CFO Stefan Johansson or CIO Lena Olofsdotter, tel. 08-545 049 50