Interim report, January - June 2003

8/12/2003 6:53 AM EST

· Invoiced sales: SEK 3,703 million (5,385)
· Net earnings: SEK 104 million (123)
· Earnings per share: SEK 3.45 (4.11)
· Earnings after financial items in the current operations: SEK 148
million (137)
· Cash flow remained good

The Rail business area was disposed of on September 25 2002 and is
included in the consolidated financial statements for the previous year.
The income statement and cash flow broken down by current operations and
the operation disposed of are shown in enclosure 4.

The Group's inflow of orders amounted to SEK 3,897 million (5,591).
Adjusted for the effects of exchange rate movements and the disposal of
Rail, this is a decrease of 5 percent, which is mainly attributable to
Cardo Door. Company acquisitions made a positive contribution of 1
percentage point.

Invoiced sales amounted to SEK 3,703 million (5,385). Adjusted for the
effects of exchange rate movements and the disposal of Rail, this
represents a decrease of 5 percent. Company acquisitions made a positive
contribution of 1 percentage point.

Net earnings amounted to SEK 104 million (123), which is equivalent to
SEK 3.45 (4.11) per share.

Current operations
After the disposal of the Rail business area, the Group's operations
consist of the Cardo Door and Cardo Pump business areas.

Operating earnings in the current operations amounted to SEK 155 million
(157) during the period. Compared with the previous year, Pump's
earnings rose during the second quarter, while Door's were lower in
consequence of the weak state of the construction market in Europe.

Earnings after financial items amounted to SEK 148 million (137). The
impact of exchange rate movements on earnings was only marginal.

Net earnings amounted to SEK 104 million (99), which is equivalent to
SEK 3.45 (3.32) per share.

Cash flow from operations was SEK 292 million (275) after tax, which is
equivalent to SEK 9.73 (9.17) per share. Adjusted for the effects of
exchange rate movements on the change in working capital, cash flow
after tax was SEK 8.83 (6.67) per share.

Cardo Door
Cardo Door's inflow of orders was, after adjustment for the effects of
exchange rate movements, 7 percent lower than the previous year. Company
acquisitions made a positive contribution of 1 percentage point.

For industrial doors and dock loading systems, demand was considerably
weaker than during the corresponding period 2002. The trend for service,
which accounts for approximately a quarter of Cardo Door's turnover,
remained good. For residential garage doors, demand was somewhat lower
than the previous year.

Invoiced sales amounted to SEK 2,323 million (2,532), which adjusted for
the effects of exchange rate movements is a decrease of 6 percent.
Company acquisitions made a positive contribution of 1 percentage point.
Operating earnings amounted to SEK 85 million (105).

The measures that were initiated during the fourth quarter of 2002 are
expected to give an annual improvement in earnings of approximately SEK
30 million and to take effect gradually during 2003, achieving full
effect as of 2004. Intense efforts are being made to further reduce
costs and to enhance efficiency in all parts of the organization with a
view to improving profitability in both the short and long term.

Cardo Pump
The inflow of orders was, after adjustment for the effects of exchange
rate movements, 1 percent lower than the previous year.

Demand in the water and wastewater segment during the period was lower
than the previous year, particularly as regards big wastewater pumps. In
the building services segment, demand was on a par with the previous
year, while it increased from the process industry.

Invoiced sales amounted to SEK 1,380 million (1,511), which adjusted for
the effects of exchange rate movements is 4 percent lower than the
previous year. Operating earnings amounted to SEK 100 million (83).

Liquidity and financing
At June 30, the Group's liquid funds stood at SEK 158 million (201)
compared with SEK 922 million at the beginning of the year. In addition,
there are unutilized credit facilities of approximately SEK 2.0 billion
(2.8).

The Group's gross investments, excluding company acquisitions, stood at
SEK 154 million (151). The level of investment was higher than the
previous year in consequence of the construction of a new production
line for residential garage doors in Torslanda, Sweden.

Net interest bearing debt at June 30 amounted to SEK 491 million
(1,495), compared with net liquid funds of SEK 593 million at the
beginning of the year.

Equity amounted to SEK 2,745 million (3,330), which is equivalent to SEK
91.51 (110.99) per share.

The Group's equity ratio at June 30 was 52.8 percent (41.9).

Personnel
The number of employees in the Group at June 30 was 6,026 (8,076).

Company acquisitions
As of January 2003, Cardo Door includes the acquired company SEA B2L,
which has a turnover of approximately SEK 70 million.

Accounting principles
The report has been drawn up in accordance with recommendation RR 20 of
the Swedish Financial Accounting Standards Council concerning interim
reports. The accounting principles used are the same as in the annual
report for 2002 except for the new recommendations of the Swedish
Financial Accounting Standards Council effective as of January 1 2003.
The application of the new recommendations has not given rise to any
adjustment of previously reported periods.

The parent company
The parent company's earnings after financial items amounted to SEK -7
million (313), its gross investments to SEK 0 million (0) and its liquid
funds to SEK 1 million (1) as against SEK 176 million at the beginning
of the year.

Market prospects
The assessment in the previous report still applies:
"There is still uncertainty about the market trend and no sign at
present indicating imminent improvement. For Cardo's part, the
uncertainty means continued focus on cost adjustment and improvements in
efficiency."

Malmö, Sweden, August 12 2003

Cardo AB (publ)

Kjell Svensson
President and CEO

This report has not been subjected to special examination by the
Company's auditors.

Cardo's interim report for January-September will be published on
October 29 2003.

Enclosures: 1. Invoiced sales, earnings and operating margin by business
area
2. Consolidated income statement and balance sheet in brief
3. Consolidated cash flow statement in brief
4. Income statement and cash flow broken down by current
operations and operation disposed of
5. Group financial summary

For further information, please contact:
Kjell Svensson, President and CEO, phone +46 40 35 04 53,
+46 40 35 04 00
Göran Axeheim, Executive Vice President and CFO, phone +46 40 35 04 42,
+46 40 35 04 00
Christer Roskvist, Head of Public Relations, phone +46 40 35 04 25,
+46 40 35 04 00

Cardo is an international engineering group and a leading supplier of
high-quality products and systems with a good aftermarket. Cardo holds
strong positions in the markets for doors and pumps. Cardo has
subsidiaries in about 30 countries with the focal point resting in
western Europe.