Interim Report January–June 2007

Continued good sales growth

2007 compared with pro forma 2006
* Sales during the first six months increased by 15 percent to MSEK 3,461 (3,012) and during the second quarter by 17 percent to MSEK 1,808 (1,540).
* Operating income before amortization increased by 4 percent during the first six months to MSEK 281 (269) and resulted in an operating margin of 8.1 percent (8.9). During the second quarter, the operating income before amortization increased by 4 percent to MSEK 160 (154). The operating margin before amortization during the second quarter amounted to 8.9 percent (10.0).
* The operating income after amortization increased during the first six months by 10 percent to MSEK 271 (247) and resulted in an operating margin of 7.8 percent (8.2). For the second quarter, the operating income after amortization amounted to MSEK 155 (149), an increase of 4 percent.
* Net income amounted to MSEK 190 (146) during the first six months and, during the second quarter, to MSEK 105 (89).
* Earnings per share increased during the first six months to SEK 0.52 (0.40) and, during the second quarter, to SEK 0.29 (0.24).


2007 compared with 2006 (Combined financial statements)
* Sales during the first six months increased by 15 percent to MSEK 3,461 (3,012) and, during the second quarter, by 17 percent to MSEK 1,808 (1,540).
* The operating income after amortization increased during the first six months by 17 percent to MSEK 271 (231) and resulted in an operating margin of 7.8 percent (7.7). For the second quarter, the operating income after amortization amounted to MSEK 155 (129), an increase of 21 percent.
* Net income amounted to MSEK 190 (118) during the first six months and, during the second quarter, to MSEK 105 (68).
* Earnings per share increased during the first six months to SEK 0.52 (0.32) and, during the second quarter, to SEK 0.29 (0.18).


* The outlook for 2007 is revised upwards. The organic sales growth for 2007 is expected to be somewhat better than during 2006.

Comments from the CEO, Juan Vallejo
“I am satisfied that the sales growth continues. The 14 percent organic sales growth during the second quarter is good, and Mainland Europe is the main driver behind this increase. We are gaining market shares in both our segments. Our Anglo-Saxon segment has returned to profit after the loss in the first quarter. The strategy to increase the service element and broadening the customer portfolio remains. We are now focusing our efforts on a cost-reduction program to improve profitability in our US/UK/Ireland segment.”