INTERIM REPORT JANUARY - SEPTEMBER 2008

INTERIM REPORT JANUARY - SEPTEMBER 2008

INCREASED SALES AND IMPROVED EARNINGS

• Inflow of orders: SEK 7,322 million (7,172)
• Net sales: SEK 6,855 million (6,576)
• Operating earnings: SEK 472 million (332)
• Net earnings: SEK 290 million (208)
• Net earnings per share: SEK 9.91 (6.92)
• Cash flow from operating activities after tax: SEK 536 million (180)
• Repurchase of own shares: SEK 445 million

Cardo continues to show an increased inflow of orders and net sales for the
first nine months of 2008. During the same period, net earnings improved to SEK
290 million. 

During the third quarter, net sales and operating earnings rose. The inflow of
orders remained positive in the Wastewater Technology Solutions division. For
the Group's door divisions, consistent price rises in combination with weakened
demand had an adverse effect on the inflow of orders compared with the
corresponding period the previous year.

The service operation continues to enjoy a good trend. 

Operating earnings were affected in the sum of SEK -13 million by the movement
of the US dollar during the period.

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


INFLOW OF ORDERS, NET SALES AND EARNINGS 
Third quarter 2008
During the third quarter, the inflow of orders amounted to SEK 2,247 million
(2,337), down 4% after adjustment for the effects of exchange rate movements.
The inflow of orders fell in all markets except for Latin America and the Middle
East. Wastewater Technology Solutions shows an increased inflow of orders. Price
rises continued to be implemented with the aim of improving the operating
margin.

Net sales amounted to SEK 2,325 million (2,186), up 6% after adjustment for the
effects of exchange rate movements. 

Operating earnings amounted to SEK 189 million (150, excluding restructuring
costs).

Period January - September 2008
During the first nine months of the year, the inflow of orders amounted to SEK
7,322 million (7,172), up 2% after adjustment for the effects of exchange rate
movements. Except for Latin America, most regions show positive growth in
comparison with the previous year. The service operation continues to develop
positively.

Net sales amounted to SEK 6,855 million (6,576), up 4% after adjustment for the
effects of exchange rate movements. 

Operating earnings improved to SEK 472 million (424, excluding restructuring
costs). Operating earnings were affected in the sum of SEK -13 million by the
movement of the US dollar during the period.

Net earnings amounted to SEK 290 million (208), which is equivalent to SEK 9.91
(8.80, excluding restructuring costs) per share.

Cash flow from operating activities was SEK 536 million (180) after tax, which
is equivalent to SEK 18.33 (6.00) per share.
OTHER MATTERS
Erroneous inventory accounting 2006
During the quarter, an error was identified in the inventory accounting in the
Door & Logistics Solutions division. The error was found to relate to 2006, but
it is not impossible that the error also dates from previous years. An
investigation is under way to finally determine when the error arose. In
accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and
Errors, the error has been corrected retroactively by restating the 2006
earnings, in which connection operating earnings have been charged with SEK 41
million, affecting earnings for 2006 in the sum of SEK 29 million after the
effect of tax. Items in the balance sheet and the relevant key figures have also
been restated for 2006 and 2007. In the balance sheet, the inventory value has
been adjusted downwards by SEK 41 million, the deferred tax asset, which is
reported under the heading Financial fixed assets, has been adjusted upwards by
SEK 12 million and equity has been reduced by SEK 29 million. It is not
impossible that the adjustment will be changed on completion of the
investigation.

Repurchase of shares
At the 2008 Annual General Meeting of Cardo AB, a resolution was passed
authorizing the Board of Directors to acquire up to so many own shares before
the next Annual General Meeting that the Company's holding at no time exceeds
10% of all shares in the Company. The purpose of the repurchase is to give the
Board the opportunity to adjust the capital structure of the Company during the
period until the next Annual General Meeting. During the period
January-September, Cardo repurchased 2,868,000 shares, equivalent to 9.6 percent
of the number of outstanding shares. The equity in the parent company and the
Group has therewith decreased by SEK 445 million.


INVITATION TO CONFERENCE CALL TODAY, NOVEMBER 12, AT 10.00 P.M.
Cardo's President and CEO Peter Aru will comment on the interim report during a
conference call today at 10.00 a.m. It will be possible to take part and ask
questions via the telephone number +46 (0)8 535 264 40. The conference may also
be followed via a webcast at www.cardo.com or www.financialhearings.com, where
you will also be able to listen and see the presentation slides afterwards. The
conference call will be held in Swedish.  


Calendar 2009
February 5 - Report on Operations 2008
April 6 - Annual General Meeting in Malmö, Sweden
May 8 - Interim Report January - March 2009
August 13 - Interim Report January - June 2009	
Interim Report January - September 2009	November 13

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 & Investor Relations, 
tel +46 40 35 04 25, +46 70 602 61 81, maria.bergving@cardo.com

Cardo is an international industrial 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
headquarter is located in Malmö, Sweden.