Half-Year Report January – June 2010

Second quarter of 2010 – Sharp growth with continued strong margins

• Net sales increased by 59 per cent to 966 MSEK (607).
• Operating profit more than doubled and amounted to 116 MSEK (54).
• Operating margin was 12.0 per cent (8.9).
• Profit after tax amounted to 80 MSEK (32).
• Earnings per share increased 150 per cent, amounting to 3.02 SEK (1.20).
• Operating cash flow amounted to 117 MSEK (174).
• The acquired Elasto Group was consolidated as of 1 April, developed favourably and better than plan.

First half of 2010 – Sharp growth with strong margins 

• Net sales increased by 37 per cent, amounting to 1,716 MSEK (1,254).
• Operating profit increased to 203 MSEK (2), excl. items affecting comparability 203 MSEK (100).
• Profit after tax totalled 138 MSEK (loss: 23), excl. items affecting comparability 138 MSEK (58).
• Earnings per share increased to 5.20 SEK (loss: 0.87), excl. items affecting comparability 5.20 SEK (2.18).
• Operating cash flow amounted to 179 MSEK (207).

President’s comments

“Our second-quarter growth was very strong, with sales up 59 per cent. Organic growth, excluding the acquisition of Elasto Group, was also impressive at 42 per cent. Our already strong operating margin increased to 12.0 per cent (8.9). We saw a sharp sales increase, notably to automotive-related customers, and we again coped with the volume increase in a flexible manner. The acquisition of Elasto Group – with units in the UK and Sweden – developed favourably and better than plan.

Growth for the first six months of the year was strong. Sales increased by 37 per cent, with organic growth accounting for 29 per cent. Operating profit more than doubled, amounting to 203 MSEK (100*). Earnings per share increased by 138 per cent and totalled 5.20 SEK (2.18*)”.

                                                                                                        Georg Brunstam, President and CEO