Interim report for the six months ended 30 June 2007

- Second quarter revenue rose by 13 per cent year-over-year at fixed exchange rates and the operating profit was SEK 381 M (286).
- Operating margin for the second quarter was 25.3 per cent (21.0).
- Revenue for the six-month period rose by 12 per cent at fixed exchange rates to SEK 3,017 M (2,776).
- Profit after tax for the six-month period was SEK 530 M (425).
- Earnings per share for the first half of the year were SEK 3.64 (2.92).

Comments from the CEO
Continued strong growth and improved profit
“In the second quarter of 2007, Seco Tools delivered continued strong growth and an improved profit. A wider market penetration continued during the six-month period. The growth trend across all market regions was sustained. The largest region, Western Europe, showed robust development with a double-digit rise in revenue. Central and Eastern Europe, Asia and South America also continued to perform well in the second quarter. As at the beginning of the year, growth in North America was stably positive but somewhat lower than in the previous year. On the whole, we see no indication of slowing in demand.

The period’s brisk revenue growth, combined with high capacity utilisation, a stable price scenario and continuous rationalisation measures, generated excellent earnings for the second quarter and the entire first half of the year. The profit margin thus reached 25.3 per cent for both the quarter and the period as a whole. The operating profit for the interim period strengthened by 24 per cent over the year-earlier period and with 13 per cent excluding restructuring charges for the plant closure in Warren, USA. Return on both capital employed and equity held steady at very solid levels”.


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.