REPORT ON OPERATIONS FULL YEAR 2007

REPORT ON OPERATIONS FULL YEAR 2007

CONTINUED GROWTH FOR CARDO IN 2007

• Inflow of orders: SEK 9,459 million (8,840)
• Net sales: SEK 9,308 million (8,556) 
• Operating earnings excluding items affecting comparability: SEK 731 million
(598)
• Items affecting comparability relate to closure of a production unit at SEK
107 million 
and impairment of goodwill at SEK 210 million
• Net earnings including items affecting comparability: SEK 170 million (401) 
• Earnings per share: SEK 5.67 (13.38)
• Unchanged dividend of SEK 9.00 proposed


Cardo shows continued growth for 2007 and, apart from items affecting
comparability, improved profitability. For the Group as a whole, organic growth
in orders was 7%. Net sales have increased for ten quarters in succession.
Full-year earnings were adversely affected by costs due to delivery disturbances
and the weak US dollar. Items affecting comparability are made up of costs in
connection with the restructuring of the production structure within Door &
Logistics Solutions and an impairment of goodwill attributable to the
Residential Garage Doors division.

RESULTS - COMPLETE REPORT 
Please see the enclosed pdf document for the complete report where all tables
and summaries can be found. The report is also available at www.cardo.com

SIGNIFICANT EVENTS DURING THE YEAR
• New production plant for docking solutions in Romania
• Door & Logistics Solutions acquires the rights to solutions for horizontally
sliding doors for aircraft hangars
• International service agreements with a number of large key accounts within
Door & Logistics Solutions
• Introduction of servicing of automatic doors for pedestrian traffic
• Wastewater Technology Solutions enters into global agreement with Veolia, the
world's largest water company
• Pulp & Paper Solutions launches instruments for measurement of paper quality
and new service concept for process pumps
• Doubling of number of exclusive dealers within Residential Garage Doors

INFLOW OF ORDERS, NET SALES AND EARNINGS
Fourth quarter 2007
During the fourth quarter, the inflow of orders amounted to SEK 2,287 million
(2,306), down 1% after adjustment for the effects of exchange rate movements.
During the quarter, the inflow of orders was strong within Pulp & Paper
Solutions, but unchanged or lower for the other divisions. For the Door &
Logistics Solutions and Pulp & Paper Solutions divisions, growth in the Asia
Pacific region was good. All B2B divisions enjoyed a continued positive trend in
eastern Europe, while postponed projects in the USA had an adverse effect on the
inflow of orders.
Net sales amounted to SEK 2,732 million (2,551), up 7% after adjustment for the
effects of exchange rate movements. Net sales increased for all divisions except
Residential Garage Doors, where the trend in Germany continued to be weak.
Operating earnings excluding items affecting comparability costs improved to SEK
306 million (270). The weak US dollar had an exchange rate effect amounting to
approximately SEK -9 million for the quarter.

Full year 2007
The inflow of orders amounted to SEK 9,459 million (8,840), up 8% after
adjustment for the effects of exchange rate movements. Organic growth was 7%.
Greatest growth during the year was seen in countries outside the EU, with the
strongest trend in the Asia Pacific region and Latin America. In terms of the
largest regions, the inflow of orders compared with the previous year rose by
29% for eastern Europe, by 12% for Asia Pacific and by 28% for Latin America,
while it decreased by 3% for North America. Service enjoyed good growth,
particularly within Door & Logistics Solutions, and major key accounts also
developed positively. Accordingly, Cardo took further steps in implementing its
new strategy during 2007.
Net sales amounted to SEK 9,308 million (8,556), up 10% after adjustment for the
effects of exchange rate movements. Organic growth was 9%.

Operating earnings excluding items affecting comparability improved to SEK 731
million (598). Operating earnings were adversely affected by costs due to
delivery disturbances and the weak US dollar. The accumulated effect of exchange
rate movements amounts to approximately SEK -21 million.
Net earnings including items affecting comparability amounted to SEK 170 million
(401), which is equivalent to SEK 5.67 (13.38) per share.
Cash flow from operating activities was SEK 406 million (184) after tax, which
is equivalent to SEK 13.53 (6.13) per share.

RESTRUCTURING PROGRAM
The restructuring program for which SEK 201 million was charged to the fourth
quarter 2005 was expected to effect a saving of SEK 55 million for 2007. The
move of a production line has not produced the expected outcome and the savings
effects for the full year 2007 therefore amount to SEK 45 million. The
division-specific aspects of the restructuring program have herewith been
concluded and the remaining part of the program relates to the Group's new IT
structure. The savings effects have been estimated at SEK 20 million for 2008,
but are expected to amount to SEK 10 million.
With the aim of further strengthening the competitiveness of the Door &
Logistics Solutions division and as part of an optimization of production
structure, a decision was taken in the first quarter to close the unit for
docking production in Wennigsen, Germany. During the year, a new production unit
was established in Romania and was inaugurated according to plan during the
third quarter. The costs of the closure in Germany were charged to the first
quarter in the sum of SEK 83 million whereof approximately SEK 55 million
relates to impairment of fixed assets. During the third and fourth quarters,
further costs of SEK 9 million and SEK 14 million respectively were incurred for
the changeover. As a result, the total cost of restructuring amounts to SEK 107
million.
The closedown in Germany in combination with the investment in Romania is
expected to give a positive annual effect of approximately SEK 45 million on the
earnings of Door & Logistics Solutions as of 2008. The effect on earnings for
2007, excluding the restructuring costs of SEK 107 million, is marginal.

DIVIDEND
The Board of Directors and President propose a dividend of SEK 9.00 (9.00) per
share for the financial year 2007, which requires SEK 270 million (270).

ANNUAL GENERAL MEETING 
The Annual General Meeting will be held in Malmö, Sweden, on Monday, April 7
2008 at 5.00 p.m.


INVITATION TO FINANCIAL HEARINGS TODAY FEBRUARY 6 AT 10.30 AM
Cardo's President and CEO Peter Aru will comment on the year-end report at a
conference today in Stockholm at 10.30 am. Notice of intention to participate
can be given at www.financialhearings.com or via e-mail to
hearings@financialhearings.com. It will also be possible to take part and ask
questions via telephone number +46 8 535 264 58. The conference may also be
followed via a webcast at www.cardo.com or www.financialhearings.com. The
conference will be held in Swedish.


Calendar 2008
Annual General Meeting April 7 in Malmö
Interim Report January-March May 9
Interim Report January-June August 13
Interim Report January-September November 12


For further information, please contact:
Peter Aru, President and CEO, tel +46 40 35 04 53
Ulf Liljedahl, CFO, tel +46 40 35 04 42
Maria Bergving, Senior Vice President Communications and Investor Relations, 
tel +46 40 35 04 25, +46 70 602 61 81, maria.bergving@cardo.com


Cardo is an international group with leading brands, offering solutions with
quality products, a high level of service and great applications know-how to
industrial customers, Operations are pursued in the Group's divisions: Door &
Logistics Solutions, Wastewater Technology Solutions, Pulp & Paper Solutions and
Residential Garage Doors, which all enjoy strong positions in their respective
markets, The Group has approximately 6,000 employees in more than 30 countries
and sales of approximately SEK 9,5 billion, Corporate headquarters are located
in Malmö, Sweden.