Interim report January – March 2011

5/6/2011 6:00 AM EST

First quarter of 2011 – Sharp growth with strong margins – Rapid and successful integration of Excel Polymers Group

• Sales increased substantially to 1,786 MSEK (750).
• Operating profit amounted to 210 MSEK (87), up 141 percent.
• The operating margin was 11.8 percent (11.7).
• Profit after tax increased sharply to 139 MSEK (58).
• Earnings per share more than doubled and totalled 4.72 SEK (1.97*). Earnings per share, based on the number of shares outstanding at the end of the period amounted to 4.04 SEK.
• Operating cash flow was 143 MSEK (62).
• A new share issue was completed in the quarter, which provided funds in the amount of approximately 541 MSEK.
• Rapid and successful integration of Excel Polymers Group.
• Cost synergies were more substantial and more rapidly realised than expected.

President’s comments

“Growth in the first quarter was sharp with increased sales in all units and not least in the acquired Excel Polymers Group. Integration of the acquisition was achieved more rapidly than expected and cost synergies proved more substantial than previously assessed. We increased sales by 138 percent, of which approximately 39 percent represented organic growth, compared with the year-earlier period. Sales to all market segments were strong in the first quarter and not least to the engineering industry where we now have significantly increased our market share. Yet again, we have managed volume increases in a flexible manner.

The operating profit (EBIT), increased 141 percent and totalled 210 MSEK (87) and our operating cash flow in the first quarter continued to be strong and amounted to 143 MSEK (62). As previously reported, we successfully completed our new share issue. Our earnings per share more than doubled and amounted to 4.72 SEK (1.97*) for the first quarter.”

                                                                 Georg Brunstam, President and CEO