Report on operations 2008

Report on operations 2008

Greatly improved earnings for Cardo 

• Inflow of orders:* SEK 9,530 million (9,267)
• Net sales:* SEK 9,810 million (9,116)
• Operating earnings:* SEK 941 million (426)
• Net earnings for the year:* SEK 592 million (182)
• Cash flow from operating activities after tax:* SEK 1,004 million (412)
• Earnings per share: SEK 18.10 (5.67) 
• Repurchase of own shares: SEK 459 million
• Proposed dividend: SEK 9.00 (9.00)


* The garage door operation in the UK was disposed of in December 2008. Inflow
of orders, net sales, earnings and cash flow from this operation are reported
separate from the continuing operations. See also under “Accounting Principles”,
page 6 in the Report on Operatons.

Cardo reports continued growth and strongly improved earnings compared with
2007. The inflow of orders rose or is unchanged in all divisions except Door &
Logistics Solutions, where it is lower than the previous year. Service
operations continued to enjoy a good trend during the year. 

All divisions report improved operating earnings, and the Group's earnings for
continuing operations rose for the full year to SEK 592 million. 

During the fourth quarter, the inflow of orders rose for Wastewater Technology
Solutions, while it decreased for other divisions. Net sales rose for all
divisions except for Residential Garage Doors.

With the 2008 results, the financial targets set in 2005 have been reached.


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


SIGNIFICANT EVENTS DURING THE YEAR
• Continued expansion of service operations
• Continued success with new international key account agreements
• Major orders for Door & Logistics Solutions in Airports & Shipyards customer
segment
• Breakthrough for Wastewater Technology Solutions in desalination applications
• Acquisition of Finnish company Kajaani Process Measurements Oy strengthened
Pulp & Paper Solutions
• Resolution to keep the Residential Garage Doors division
• Disposal of garage door operation in the UK
• Repurchase 10 percent of all shares in the Company

Inflow of orders, net sales and earnings 
Fourth quarter 2008
During the fourth quarter, the inflow of orders amounted to SEK 2,316 million
(2,242), down 5% after adjustment for the effects of exchange rate movements.
The inflow of orders was positive in Latin America, North America, the Middle
East and eastern Europe, while it decreased in Asia-Pacific and western Europe.
Wastewater Technology Solutions continues to show an increased inflow of orders.
The recession had an adverse effect on all divisions. 

Net sales amounted to SEK 3,063 million (2,684), up 7% after adjustment for the
effects of exchange rate movements and rose for all divisions except Residential
Garage Doors. 

Operating earnings amounted to SEK 456 million (310, excluding items affecting
comparability). 

Full year 2008
The inflow of orders amounted to SEK 9,530 million (9,267), which is unchanged
compared with the previous year after adjustment for the effects of exchange
rate movements. All markets except western Europe show positive growth. During
the year, price rises were implemented to compensate for rises in the prices of
raw materials. Service operations continued to develop in a positive manner. 

Net sales amounted to SEK 9,810 million (9,116), up 5% after adjustment for the
effects of exchange rate movements. All divisions report a rise in net sales
during the year. 

Operating earnings improved for the continuing operations to SEK 941 million
(743, excluding items affecting comparability). 

Earnings amounted to SEK 592 million (182), which is equivalent to SEK 20.63
(6.07) per share. 

Cash flow from operating activities after tax was SEK 1,004 million (412), which
is equivalent to SEK 34.98 (13.73) per share. 

Other matters

Disposal
During the fourth quarter, Cardo disposed of its garage door operation in the UK
to Bowburn Ltd. Bowburn Ltd thereby acquired the assets relating to the garage
door operation in the UK and takes over responsibility for human resources, in
return for which Cardo pays Bowburn Ltd approximately SEK 6 million. The cost of
disposal, which was charged to Cardo's earnings for 2008, amounts to
approximately SEK 53 million as against the previously announced SEK 43 million,
whereof approximately SEK 36 million in impairment losses.
Cardo continues to own the rights to the Henderson brand. Under a licensing
agreement, Bowburn Ltd is entitled to use the brand when selling the type of
garage doors that was manufactured at Cardo's factory in Bowburn.
The disposal is expected to have a positive impact of approximately SEK 15
million on Cardo's earnings in 2009.

Acquisition
The third quarter saw the acquisition of the Finnish company Kajaani Process
Measurements Oy (KPM), one of Finland's leading manufacturers of sophisticated
measuring instruments for the pulp and paper industry. KPM enjoys annual sales
of approximately SEK 20 million. The acquisition was realized at an enterprise
value of SEK 38 million. The acquisition had a marginally positive effect on
Cardo's earnings during 2008.

The nomination committee's proposal for Board of Cardo
Cardo's nomination committee proposes re-election of the Board members Fredrik
Lundberg, who is also proposed for re-election as Chairman of the Board, Peter
Aru, Tuve Johannesson, Ulf Lundahl, Carina Malmgren Heander, Lennart Nilsson and
Anders Rydin and election of Johnny Alvarsson as a new member of the Board.
Berthold Lindqvist has declined re-election as a member of the Board.

Johnny Alvarsson is 58 years old and a graduate engineer. Johnny Alvarsson has
held posts that include Head of Software and Hardware Development within LM
Ericsson, President of  Zetterbergs Industri AB and President of
Elektronikgruppen AB, and has been President of  Indutrade AB since 2004. Johnny
Alvarsson is a member of the board of VBG AB.

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 year, Cardo repurchased
3,000,000 shares, equivalent to 10 percent of the number of outstanding shares.
The authorization of the General Meeting of Shareholders regarding repurchase of
own shares has therewith been fully realized. The shares were repurchased for a
total of SEK 458,746,025, signifying an average price of SEK 152.92.  The equity
in the parent company and the Group has therewith decreased by SEK 459 million.
The Board proposes that the Annual General Meeting on April 6, 2009 renew its
authorization to repurchase own shares. In addition, a proposal will be made to
cancel shares held in treasury with a contemporaneous bonus issue without
issuing new shares of an amount equivalent to the reduction of share capital
through the cancellation of shares.

Annual General Meeting
The Annual General Meeting will be held in Malmö, Sweden, on Monday, April 6
2009 at 5.00 p.m.

Annual report
The annual report for 2008 will be presented during the week beginning March 16
2009, on Cardo's website at www.cardo.com. Printed annual reports will be sent
to those shareholders and others who have specially indicated that they wish to
receive this publication by ordinary mail.


Malmö, Sweden, February 5 2009

Cardo AB (publ)
Board of Directors


This report has not been subjected to special examination by the Company's
auditors.

Invitation to Financial Hearings today February 5 at 10.00 a.m.
Cardo's President and CEO Peter Aru will comment on the year-end report at a
conference today in Stockholm at 10.00 a.m. 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 5051 3792. 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 2009
April 6 - Annual General Meeting in Malmö
May 8 - Interim Report January-March 2009
August 13 - Interim Report January-June 2009
November 13 - Interim Report January-September 2009


For further information, please contact:
Peter Aru, President and CEO, tel +46 40 35 04 53
Ulf Liljedahl, CFO and Executive Vice President, 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 almost SEK 10 billion. Corporate headquarters are located in Malmö,
Sweden.