Interim report for the three months ended 31 March 2010

- Revenue for the quarter rose by 10 per cent at fixed exchange rates and by 1 per cent in Swedish kronor (SEK), and amounted to SEK 1,370 M (1,351). - Operating profit was SEK 220 M (95), equal to an operating margin of 16.1 per cent (7.0). - The cost-cutting programme contributed to a significantly improved operating profit. - Continued high rate of new product launches. - Profit after tax was SEK 145 M (54). - Earnings per share for the three-month period were SEK 1.00 (0.37). Comments from the CEO “Demand improved successively in virtually all of Seco Tools’ markets during the quarter compared to the end of 2009. Especially keen demand was noted in the emerging markets of Asia and South America. Among the large mature markets, the strongest performance was seen in the USA. All in all, the outlook for continued growth in demand is deemed favourable, among other things as an effect of inventory increases among our customers. Last year’s ambitious cost-cutting programmes continued to make a positive contribution to the Group’s earnings during the quarter. Overall, these programmes have reduced Seco Tools’ annual cost level by more than SEK 620 M. Operating margin for the first quarter strengthened considerably over the year-earlier period and reached 16.1 per cent (7.0). The improvement was attributable to high sales, better capacity utilisation and the effects of the cost-cutting programmes. However, foreign exchange losses had a dampening effect on earnings growth. The continued high level of ambition and activity in R&D during 2009 has enabled Seco Tools to sustain a fast pace of new product launches. At the beginning of the year we launched several important products that offer significant improvements for our customers in terms of performance, precision and tool life,” says Kai Wärn, President and CEO.