INTERIM REPORT JANUARY-JUNE 2007

INTERIM REPORT JANUARY-JUNE 2007

CARDO CONTINUING TO DEVELOP ACCORDING TO PLAN

• Inflow of orders: SEK 4,835 million (4,426)

• Net sales: SEK 4,390 million (3,948)

• Operating earnings excluding restructuring costs: SEK 275 million (188)
Restructuring costs relate to closure of production unit and amount to SEK 83
million

• Net earnings including restructuring costs: SEK 117 million (124)

Cardo is following its declared strategy and developing according to plan. The
first half-year saw a continued good trend. Inflow of orders and net sales are
continuing to rise for the ninth and eighth quarter in succession respectively.

The strong inflow of orders during the first quarter was followed by a lower
rate of increase in the second quarter. Organic growth for the first half-year
amounts to 9%, and the backlog of orders has increased by 24% since the turn of
the year.

The organic increase in sales for the first half-year amounts to 12%. The
earnings trend is as planned with an improved operating margin for the seventh
quarter in succession. All divisions are showing improvements in earnings
compared with the previous year.


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


INFLOW OF ORDERS, NET SALES AND EARNINGS 

Second quarter 2007
During the second quarter, the inflow of orders amounted to SEK 2,426 million
(2,334), up 5% after adjustment for the effects of exchange rate movements.
Organic growth was 4%. Growth was good in Europe, but we saw a slowdown in
Germany in both the door divisions after the strong first quarter. In the USA,
we also saw less activity than during the corresponding period the previous
year. Latin America and the Middle East continued to enjoy a strong trend, while
the rate of growth in Asia was lower in comparison with 2006.

Net sales amounted to SEK 2,311 million (2,136), up 10% after adjustment for the
effects of exchange rate movements. Organic growth was 9%.

Operating earnings improved to SEK 173 million (145). 

Period January - June 2007
During the first half-year, the inflow of orders amounted to SEK 4,835 million
(4,426), up 11% after adjustment for the effects of exchange rate movements.
Organic growth was 9%. The first half-year saw positive growth in all major
markets in Europe and a continued strong trend in eastern Europe. Other markets
are developing well, except for North America, where the weak state of the
construction market had an adverse effect.

Net sales amounted to SEK 4,390 million (3,948), up 13% after adjustment for the
effects of exchange rate movements. Organic growth was 12%.

Operating earnings excluding restructuring costs improved to SEK 275 million
(188). 
Net earnings, including restructuring costs, amounted to SEK 117 million (124),
which is equivalent to SEK 3.89 (4.13) per share.

Cash flow from operating activities was SEK 134 million (116) after tax, which
is equivalent to SEK 4.47 (3.87) per share.


RESTRUCTURING PROGRAM GOING ACCORDING TO PLAN
The restructuring program aimed at rationalizing the operation and for which SEK
201 million was charged to the fourth quarter 2005 is going according to plan.
The expected effects in terms of lower costs are estimated at SEK 55 million for
the full year 2007.


OUTLOOK
The outlook from the interim report for January-March 2007 still applies:
We assess that the market trend for Cardo's products and services will be
generally relatively favorable during 2007 thereby providing conditions for
continued organic growth for the Group as a whole. We expect the prices of raw
materials to remain high and that there will be continuing difficulties in
passing on price rises to the customers for the Door & Logistics Solutions and
Residential Garage Doors divisions.


INVITATION TO FINANCIAL HEARINGS TODAY, AUGUST 15, AT 10.00 AM
Cardo's President and CEO Peter Aru will comment on the interim report at a
conference today in Stockholm at 10.00 am. Notification of intention to attend
may be made 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 (0)8 5052 0110. The conference may also be
followed via a webcast at www.cardo.com or www.financialhearings.com. The
conference will be held in Swedish. 



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 5,900 employees in more than 30 countries
and sales of approximately SEK 9 billion. Corporate headquarters are located in
Malmö, Sweden.