Interim report for the nine months ended 30 September 2007

- Year-over-year revenue for the third quarter rose by 15 per cent at fixed exchange rates and operating profit was SEK 342 M (298).
- Operating margin for the third quarter was 23.7 per cent (23.6).
- Revenue for the first nine months of 2007 improved by 13 per cent at fixed exchange rates to SEK 4,462 M (4,039).
- Profit after tax for the nine-month period was SEK 757 M (629).
- Earnings per share for the nine-month period strengthened by 20 per cent to SEK 5.20 (4.32).

Comments from the CEO

“The third quarter saw sustained robust development for Seco Tools across all market regions, driven largely by a combination of ambitious market efforts, a comprehensive range of high performance products and strong industrial growth. In addition, the new products launched during the quarter were well received by the market.

For additional information, contact Kai Wärn, President and CEO, telephone +46 (0) 223-401 10 or Patrik Johnson, CFO, telephone +46 (0) 223-401 20. E-mail can be sent to investor.relations@secotools.com

Previously published financial information can be found under “Investor Relations &Corporate Governance” on the Seco Tools website (www.secotools.com). Seco Tools AB’s corporate registration number is 556071-1060 and the company´s address is Seco Tools AB, SE-737 82 Fagersta, Sweden. The telephone number to the Group head office is +46 (0) 223-400 00.


The growth in Western Europe remained stable with further double-digit revenue increase in the third quarter. The positive trend in the expansive regions of Central and Eastern Europe, Asia and South America continued with rising growth rates. Growth in North America, which declined year-on-year for the nine-month period, has nonetheless improved during the year. On the whole, we see no indication of slowing in demand.

Favourable revenue growth, stable prices, high capacity utilisation and ongoing efficiency improvements give positive development in earnings for the period despite continued ambitious market efforts. Operating margin showed a slight seasonal decrease to 23.7 per cent for the third quarter and 24.8 per cent for the nine-month period. Return on both capital employed and equity were maintained at very solid levels.”