INTERIM REPORT JANUARY-SEPTEMBER 2007

INTERIM REPORT JANUARY-SEPTEMBER 2007

STRONG INFLOW OF ORDERS IN THE THIRD QUARTER

• Inflow of orders: SEK 7,172 million (6,535)
• Net sales: SEK 6,576 million (6,004) 
• Operating earnings excluding restructuring costs: SEK 424 million (328)
• Restructuring costs relate to closure of a production unit and amount to SEK
92 million, whereof SEK 9 million relates to the third quarter.
• Net earnings including restructuring costs: SEK 208 million (215)
• Earnings per share including restructuring costs: 6:92 SEK (7:15)

The first nine months of the year saw a continued good trend. Inflow of orders
and net sales are continuing to rise for the tenth and ninth quarter in
succession respectively.
The inflow of orders during the third quarter was strong with a particularly
good trend in eastern Europe and Asia. The increase for the quarter was 11%
adjusted for the effects of exchange rate movements. Organic growth for the
first nine months of the year was 10%, and the backlog of orders has increased
by 33% since the turn of the year.
Earnings within Door & Logistics Solutions were adversely affected by costs due
to delivery disturbances and non-recurring costs in connection with the
restructuring of the production structure. Increased costs in connection with
the implementation of a new groupwide IT structure as well as the weak US dollar
also had an adverse effect on earnings.
All divisions are showing improvements in earnings for the first nine months
compared with the corresponding period 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
Third quarter 2007
During the third quarter, the inflow of orders amounted to SEK 2,337 million
(2,109), up 11% after adjustment for the effects of exchange rate movements. The
quarter shows good growth in Asia and Europe, where the trend in eastern Europe
was particularly strong. The inflow of orders rose in all divisions except
Residential Garage Doors, where the trend in Germany continued to be weak.
Net sales amounted to SEK 2,186 million (2,056), up 7% after adjustment for the
effects of exchange rate movements. Operating earnings excluding restructuring
costs improved to SEK 150 million (140). Earnings within Door & Logistics
Solutions were adversely affected by costs due to delivery disturbances and
non-recurring costs equivalent to SEK 9 million in connection with restructuring
of the production structure. Increased costs of approximately SEK 10 million
relating to improving the efficiency of the Group's IT structure and involving
global infrastructure and a new common network provider were charged to
earnings. The weak US dollar had an impact, and the effect of exchange rate
movements amounts to approximately SEK -8 million for the quarter.

Period January - September 2007
During the first nine months of the year, the inflow of orders amounted to SEK
7,172 million (6,535), up 11% after adjustment for the effects of exchange rate
movements. Organic growth was 10%. The first nine months of the year saw
positive growth in Europe with a particularly strong trend in eastern Europe.
Other strong regions during the period were Latin America, the Middle East and
Asia. The trend in the North American market was somewhat weaker.
Net sales amounted to SEK 6,576 million (6,004), up 11% after adjustment for the
effects of exchange rate movements. Organic growth was 10%.
Operating earnings excluding restructuring costs improved to SEK 424 million
(328). The accumulated effect of exchange rate movements, primarily as a
consequence of the weak US dollar, for the first nine months of the year amounts
to SEK -12 million.
Net earnings, including restructuring costs, amounted to SEK 208 million (215),
which is equivalent to SEK 6.92 (7.15) per share. 
Cash flow from operating activities was SEK 180 million (96) after tax, which is
equivalent to SEK 6.00 (3.20) per share.

RESTRUCTURING PROGRAM
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.
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
has been established in Romania. This was inaugurated according to plan during
the third quarter. The costs of the closure in Germany have been charged to the
first quarter 2007 in the sum of SEK 83 million whereof approximately SEK 55
million relates to write-downs of fixed assets. During the third quarter,
further costs of SEK 9 million have been incurred for the changeover and the
cost of restructuring up to and including the third quarter amounts to SEK 92
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 92 million, is expected to be
marginal.

OUTLOOK
The outlook from the interim report for January-June 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 CONFERENCE CALL ON FRIDAY, NOVEMBER 9, AT 10.00 A.M.
Cardo's President and CEO Peter Aru will comment on the interim report at a
conference call on Friday, November 9 at 10.00 a.m. It will be possible to take
part and ask questions via the telephone number +46 (0)8 5352 6458. Please note
that the area code must always be included. The conference may also be followed
via a webcast through a link on Cardo's website at www.cardo.com or via
www.financialhearings.com. Here you will also be able to listen and see the
presentation slides afterwards. The conference call will be held in Swedish.


Calendar 2008
Report on Operation 2007	February 6
Annual General Meeting	April 7 in Malmö, Sweden 


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.