CARDO AB: Interim report, January – June 2001
Earnings for last year included non-recurring income relating to a pension refund of SEK 69 million.
Cardo Pump is one of Europe's largest manufacturers of pumps, mixers
and aerators and a global leader in the production of sophisticated
measuring instruments for the pulp and paper industry.
After adjustment for the effects of exchange rate movements, the
inflow of orders was 4 percent higher than last year, despite falling
demand in Germany and the UK.
In Cardo Pump's biggest segment, water and wastewater, demand
increased during the half-year period compared with the corresponding
period last year, as did demand from the process industry. In the
building services segment, demand was less than last year.
During the second quarter, a number of significant orders were
received in respect of pumps for the pulp and paper industry,
including ones from Hallstavik in Sweden, Mayen in Germany and
Aracruz in Brazil. In the water and wastewater segment, big orders
were received for, among other things, mixers for Belgium and
submersible pumps for China.
Invoiced sales amounted to SEK 1,306 million (1,211). The increase is
almost exclusively attributable to the effects of exchange rate
movements. Operating earnings amounted to SEK 73 million (98).
Reduced sales and lower margins in Germany during the second quarter
had an adverse effect on earnings.
Certain cost-saving measures were adopted during the period. These
included a start on a restructuring of the plant in Mölndal, Sweden,
with a view to improving efficiency and profitability. Further
measures will be adopted, principally in markets with falling demand,
and these will be charged to earnings for the second half of the
year. The objective is to achieve an operating margin level of 10-11
percent for the business area within a two-year period.