Weak North American market requires revision of earnings forecast

Weak North American market requires revision of earnings forecast

In recent months, demand in the North American market for trailers and hydraulic
products for industrial vehicles has declined sharply in comparison with
previous customer forecasts.

The sharp decline in nickel prices has led to substantial reductions in the
price of alloy supplements for stainless wire, resulting in an impairment loss
of about SEK 8 million being posted against Garphyttan's inventories in the
third quarter.

Due to the continued weak state of the market for trucks, as well as new
forecasts for trailers and hydraulic products for the North American market,
combined with the consequences of the production problems experienced in
Garphyttan during the year and the impairment loss posted for inventories of
stainless products, Haldex's assessment is that its operating profit for the
current year will be somewhat lower than in the preceding year, when operating
profit amounted to SEK 390 million. Earnings during the second half of the year
will also be adversely affected by the weak exchange rate for the US dollar. The
previous assessment was that operating profit would improve in relation to the
preceding year.

Haldex's previous assessment that net sales in 2007 would be on roughly the same
level as in the preceding year is retained, since it will be possible to
compensate the decline in sales in North America through growth in Traction
Systems, the acquisition of Runguang Hydraulics in China and a strong trend in
the European market. In terms of earnings, the contributions from these units
will not fully compensate the decline in earnings from the North American units.

A review of the production structure in the Friction Products business unit in
North America is currently under way. Haldex's assessment is that the coming
changes will result in restructuring. The cost of these measures is estimated to
amount to SEK 40-50 million, with an anticipated repayment period of one year.
It is estimated that it will be possible to present a detailed plan during the
fourth quarter.

Haldex will present its interim report for the January to September period on
October 25.


Haldex (www.haldex.com), headquartered in Stockholm, Sweden, is a provider of
proprietary and innovative solutions to the global vehicle industry, with focus
on products in vehicles that enhance safety, environment and vehicle dynamics.
Haldex is listed on the Stockholm Stock Exchange and has annual sales of nearly
8 billion SEK with 6,000 employees

For additional information, please contact Joakim Olsson, President and Group
CEO, phone. +46 8 545 049 52 or +46 70 545 86 54 or Stefan Johansson, CFO,
phone. +46 8 545 049 52 or +46 70 224 24 01.