HALDEX YEAR-END REPORT 2010

• Sales amounted to SEK 6,906 m (5,622). Adjusted for exchange-rate fluctuations and divestments, sales increased 34% compared with 2009.

• Earnings after tax totaled SEK 131 m (75). Earnings per share amounted to SEK 2.87 (2.40). Earnings per share at December 31, 2009 were SEK 1.86, as calculated using the same number of shares outstanding as in 2010.

• Adjusted* operating income and adjusted* operating margin increased sharply and totaled SEK 459 m (loss: 79) and 6.7% (minus: 1.5), respectively. In the fourth quarter, Haldex once again reported a strong margin, exceeding the Group target of 7%.

• Cash flow after investments remained strong and amounted to SEK 252 m (847), thus giving the Group a strong financial position with a net debt of SEK 684 m (985).

• On December 17, 2010, Haldex signed an agreement with BorgWarner, Inc. concerning the sale of the Traction Systems Division. The transaction was finalized after the close of the reporting period on January 31, 2011. The purchase consideration was SEK 1,425 m, which was paid in cash on a debt-free basis. The transaction generated a capital gain of about SEK 1,100 m.

• For the 2010 fiscal year, the Board of Directors intend to propose to the annual shareholders meeting an ordinary dividend of SEK 3 per share and an extraordinary transfer corresponding to SEK 30 per share by a redemption of shares. This corresponds to a transfer to the shareholders totaling SEK 1,447 m.

• Haldex’s Board of Directors has proposed a demerger of the company’s divisions, following which Haldex shareholders will hold shares in two separate companies instead of one. The aim is to present the motion to shareholders in conjunction with the Annual General Meeting that will take place on June 8, 2011 (announced July 16).

* Excluding Garphyttan Wire, restructuring costs, nonrecurring items and amortization of acquisition-related surplus values.  

For additional information, please contact:

Joakim Olsson, President and Group CEO or Stefan Johansson, CFO, phone 46 8 545 049 52.

Haldex (www.haldex.com), headquartered in Stockholm, Sweden, is a provider of proprietary and innovative solutions to the global vehicle industry, with focus on products in vehicles that enhance safety, environment and vehicle dynamics. Haldex is listed on the Nasdaq OMX Stockholm Stock Exchange and had net sales of nearly 5.5 billion SEK in 2009. The number of employees amounts to about 4,000.

Haldex discloses the information in this press release according to the Swedish Securities Market Act and/or the Swedish Financial Trading Act. The information was provided for public release on Tuesday February 22, 2011.