Interim report January-September 2009

President and CEO Peter Aru:
“Demand remained weak during the third quarter, and the inflow of orders decreased in all markets except for Asia-Pacific, which saw a positive trend. The continued positive cash flow trend further strengthened the consolidated balance sheet and we report an equity ratio of more than 50 percent.
There remains uncertainty concerning the market trend and we are adapting the business on an ongoing basis.”

Results - complete report
Please see the enclosed pdf document for the complete report where all tables and summaries are found.
The report is available at www.cardo.com

Third quarter 2009
During the third quarter, the inflow of orders amounted to SEK 2,033 million (2,198), down 14% after adjustment for the effects of exchange rate movements. Asia-Pacific saw a positive trend, while the trend remained negative in other markets.

Net sales amounted to SEK 1,952 million (2,280), down 20% adjusted for the effects of exchange rate movements.

Operating earnings amounted to SEK 109 million (194). Operating earnings were charged with costs of SEK 25 million of a non-recurring nature to adapt the organization to prevailing demand, allocated as cost of goods sold of SEK 9 million and selling and administrative expenses of SEK 16 million.

Period January to September 2009
During the first nine months of the year, the inflow of orders amounted to SEK 6,423 million (7,158), down 19% after adjustment for the effects of exchange rate movements. The inflow of orders decreased in all markets except for Asia-Pacific, which shows a positive trend during the first nine months of the year.

Net sales amounted to SEK 6,303 million (6,709), down 15% adjusted for the effects of exchange rate movements.

Operating earnings amounted to SEK 310 million (485). Operating earnings were charged with costs of SEK 66 million of a non-recurring nature to adapt the organization to prevailing demand, allocated as cost of goods sold of SEK 21 million and selling and administrative expenses of SEK 45 million. It is assessed that further adaptation of the organization will result in additional non-recurring costs of up to SEK 125 million during the remainder of the year. The savings effect during 2009 is expected to amount to SEK 60-70 million and a full annual savings effect of approximately SEK 200-250 million is expected from the third quarter of 2010.

ANNUAL GENERAL MEETING
The Annual General Meeting will be held in Malmö, Sweden, on Wednesday, April 7 2010 at 5.00 p.m.

The nomination committee that has been appointed ahead of the 2010 Annual General Meeting consists of:
Claes Boustedt (chairman), L E Lundbergföretagen AB, Stockholm
Göran Espelund, Lannebo funds, Stockholm
Mats Lagerqvist, Swedbank Robur funds, Stockholm
Fredrik Lundberg, Chairman of Cardo’s board of directors

Proposals regarding election of members of the Board of Directors and the Board fee may be sent either to a member of the nomination committee or via Cardo to be forwarded.In order for the nomination committee to be able to devote sufficient attention to proposals received, we recommend that proposals be submitted prior to the turn of the year.

Invitation to conference call today November 13 at 10.00 a.m.
Cardo’s President and CEO Peter Aru will comment on the interim report during a conference call today at 10.00 a.m. Notification of intention to attend may be made at www.financialhearings.com or via e-mail to  . It will be possible to take part and ask questions via the telephone number +46 (0)8 50513786. The conference may also be followed via a webcast at www.cardo.com or www.financialhearings.com, where you will also be able to listen and see the presentation slides afterwards. The conference call will be held in Swedish.


Financial calendar 2010
February 4, Report on Operations 2009
April 7, Annual General Meeting in Malmö
May 4, Interim Report January – March
August 13, Interim Report January – June
November 12, Interim Report January - September