Interim report January - June 2011

Interim report January - June 2011

Record earnings and substantially improved sales

*  Revenue for the quarter increased 31 per cent at fixed exchange rates
and 19 per cent in SEK to the record level of SEK 1,775 M (1,485).
*  Operating profit for the second quarter rose 25 per cent to SEK 389 M
(311), corresponding to an operating margin of 21.9 per cent (20.9).
*  The interim period's profit after tax was SEK 520 M (358).
*  Earnings per share for the quarter were the highest ever posted and
amounted to SEK 1.89 (1.46). Earnings per share were 3.57 (2.46) for the
six-month period.
*  Investments in emerging markets continued during the quarter,
including the inauguration of a distribution centre inChina

Comments from the CEO

”Demand remained strong during the second quarter and revenue improved
compared with the first quarter, reaching new record levels. All market
regions reported strong growth during the quarter compared with the
corresponding period year-on-year. The most positive trend was noted in
NAFTA and Central andEastern Europe. Emerging markets in Asia andSouth
Americaalso continued strong, but at a slightly lower growth rate
compared with the corresponding period in the preceding year. Overall,
we have not seen any signs of a slowdown in demand and assess the
outlook for the coming quarter as continued positive.

Operating profit improved compared with the year-earlier period and was
SEK 389 M (311) for the quarter, corresponding to a margin of 21.9 per
cent (20.9). This improvement was largely attributable to higher
volumes. However, the strong SEK had a negative effect of SEK 79 M on
the earnings trend for the quarter compared with the year-earlier
period. Earnings per share amounted to SEK 1.89 (1.46), the highest ever
reported for a single quarter.

Cash flow from operating activities before changes in working capital
remained strong and amounted to SEK 397 M (379) for the quarter.
However, the build up of inventory, increased receivables and a raised
level of investment had a dampening effect on the cash flow trend during
the quarter. In combination with the dividend paid, this meant that the
net debt/equity ratio rose to 0.66 (0.52).

Growth initiatives continued during the quarter and these currently
focus primarily on market penetration in emerging regions and increased
capacity for solution orientation combined with a continuous upgrading
of the product portfolio. One example is the new investments inChinain
the form of a new sales office and distribution centre,” says Lars
Bergström, President and CEO.

The information contained herein is subject to the disclosure
requirements of Seco Tools AB under the Swedish Securities Exchange and
Clearing Operations Act and/or the Financial Instruments Trading Act.
This information was submitted for publication on 19 May 2011, 7:45 a.m.
CET.

For additional information, please contact Per-Lennart Berg, Director
Group Communication, (tel +46 223-403 20), Lars Bergström, President and
CEO (tel: +46 223-401 10) or Patrik Johnson, CFO (tel +46 223-401 20).
E-mail can be sent to investor.relations@secotools.com

Previously published financial information can be found under "About
Seco/Investor Relations" on the Seco Tools website (www.secotools.com).
Seco Tools AB's Corporate Registration Number is 556071-1060 and the
company's address is Seco Tools AB, SE-737 82 Fagersta, Sweden. The
telephone number to the Group's head office is +46 223-400 00.