HALDEX INTERIM REPORT JANUARY

HALDEX INTERIM REPORT JANUARY - MARCH 2011

 


  · Sales totaled SEK 1,609 m (1,600). Adjusted for exchange-rate
fluctuations and divestments, sales increased 26% compared with the
year-earlier period.

  · Earnings after tax amounted to SEK 1,182 m (12). Earnings per share
were SEK 26.70 (0.24).

  · Operating income totaled SEK 1,220 m (46).

  · Adjusted* operating income rose sharply to SEK 125 m (47). The
adjusted* operating margin continued to strengthen and closed at 8.3%
(3.6), exceeding the Group target of 7%.

  · Cash flow after investments totaled SEK 1,230 m (8). Thus, the Group
has a solid financial position with a net receivable of SEK 604 m (net
debt: 977).

  · The divestment of the Traction Systems Division to BorgWarner Inc, a
global subcontractor in the vehicle industry, was completed on January
31, 2011. The purchase consideration of SEK 1,425 m was paid in cash on
a debt-free basis. The price amounts to nearly 14 times historical
earnings and is considered to maximize the value for Haldex's
shareholders. The transaction generated a capital gain of SEK 1,115 m.

  · As previously announced by Haldex, the Board intends to propose that
the Annual General Meeting approve an ordinary dividend of SEK 3 per
share for the 2010 fiscal year plus an extraordinary transfer of funds
to the shareholders via a share redemption equivalent to SEK 30 per
share. This corresponds to a dividend and transfer to shareholders
totaling SEK 1,459 m.

  · As previously announced, the Board has proposed a demerger of the
Group so that instead of having shares in a single company, Haldex's
shareholders will hold shares in two separate companies. The plan is to
present this motion to shareholders in conjunction with the Annual
General Meeting scheduled for June 8, 2011 (published July 16, 2010).

* Excluding the Traction Systems Division, capital gains, restructuring
costs, nonrecurring items and amortization of acquisition-related
surplus values.

 

President and CEO Joakim Olsson comments on the first quarter of 2011

The first quarter saw Haldex once more deliver a strong result with an
adjusted margin of 8.3% that again exceeded the Group target of 7%. The
favorable demand emerging towards the close of 2010 gained strength and,
combined with the new cost structure, boosted earnings.

We continued our structural programs for the Haldex Group by finalizing
the divestment of the Traction Systems Division, with a capital gain of
SEK 1,115 m for the quarter. The stable financial position and the
disposal of Traction permit the proposed dividend and share redemption
that, combined, represent a dividend and transfer to shareholders of
about SEK 1.4 billion. Work to prepare the two divisions for functioning
as independent listed companies is proceeding as planned.

For further information, please contact Joakim Olsson, President and
CEO, Stefan Johansson, CFO, or Lena Olofsdotter, SVP Corporate
Communications, tel: +46 8 545 049 50.
HALDEX INTERIM REPORT JANUARY - MARCH 2011

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