Interim report January-June 2007

Interim report January-June 2007

“We worked intensively to keep pace with fast-rising paper prices during the
spring but found it difficult to push through our new prices in time,
particularly in Germany, which had a tangible impact on gross margin in the
second quarter. Now we are continuing to raise our prices and make further cost
cuts in order to quickly correct the situation” says Bong's President and CEO
Anders Davidsson.

•	Net sales for the first half of 2007 amounted to SEK 1,013 million (1,031) and
second quarter sales to SEK 472 million (474). 
•	Adjusted operating profit is reported at SEK 27 million (44) for the first
half of the year and SEK 3 million (20) for the second quarter. Including
one-time items, operating profit was SEK 19 million (-1) for the first half of
the year and SEK -5 million (-25) for the second quarter.

•	The loss after tax for the second quarter was SEK -12 million (-24). For the
first half of the year, the loss after tax was SEK -4 million (-13).Earnings per
share after dilution for the first half of the year were SEK -0.29 (-1.04).
•	Cash flow after investing activities for the first half of the year was SEK
-72 million (-45). In the second quarter, working capital decreased after a
substantial build-up in the first quarter and cash flow after investing
activities reached SEK 7 million (-12). 

•	Bong's Polish operations have been transferred to a company owned jointly with
the envelope printer Liston. The factory in Warsaw has been closed.

•	Second quarter earnings included additional restructuring charges for the
integration of RCT in Germany, further cost-cutting measures in the German unit,
the ongoing production transfer in Finland, the closure of the Warsaw factory
and the change of management at Bong UK. At the same time, tangible assets were
sold at a profit. The net of these one-time items was SEK -8 million.


For additional information, please contact Anders Davidsson, President and CEO
of Bong Ljungdahl AB. Telephone (switchboard) +46 (0)44 20 70 00, (direct) +46
(0)44 20 70 80, (mobile) 
+46 (0)70 545 70 80.

Bong is one of Europe's leading envelope companies. The Group has annual sales
of approximately SEK 2 billion, some 1,400 employees and an annual manufacturing
capacity of around 15 billion envelopes at its factories in Sweden, Norway,
Denmark, Finland, Poland, Germany, Belgium, the UK, Russia, Estonia and
Lithuania. 
Bong has a very strong market position, particularly in Northern Europe, and
conducts sales and marketing in thirteen European countries through its own
sales organisations. Bong is expanding rapidly in its ProPac line of packaging
solutions. The Group sees attractive opportunities for further expansion and
development. Bong is a publicly listed company and its shares are quoted on the
OMX Nordic Stock Exchange in Stockholm.