CARDO AB Interim report, January – March 2001
- Inflow of orders: SEK 2,900 million (2,357)
- Invoiced sales: SEK 2,375 million (2,214)
- Operating earnings: SEK 100 million (107)
- Earnings after financial items: SEK 76 million (83)
- Earnings per share: SEK 1.63 (1.80)
The Group's inflow of orders amounted to SEK 2,900 million (2,357)
during the quarter, which is a rise of 15 percent for the current
structure of the Group after adjustment for the effects of exchange
rate movements. The rise is almost exclusively attributable to Cardo
Rail, which has had a very good inflow of orders during the period.
Invoiced sales amounted to SEK 2,375 million (2,214). Adjusted for
the effects of exchange rate movements, this is a rise of 2 percent,
which is mainly attributable to company acquisitions.
Operating earnings amounted to SEK 100 million (107), providing an
operating margin of 4.2 percent (4.8). Cardo Door improved its
earnings, while Cardo Pump's were slightly lower. Lower deliveries of
completed orders compared with the corresponding period last year
resulted in a reduction in Cardo Rail's earnings by SEK 8 million,
which gave a slightly lower operating margin. For the year as a
whole, Cardo Rail's operating margin is expected to be in line with
the objective of 8-10 percent.
Earnings after financial items were SEK 76 million (83), providing a
profit margin of 3.2 percent (3.8). Earnings per share after full tax
amounted to SEK 1.63 (1.80).
Exchange rate movements are estimated to have had only a marginal
impact on Group earnings.
Return on capital employed was 19.6 percent (19.1) for the
twelve-month period ended March 31. Return on equity during the same
period amounted to 18.9 percent (21.5).
Cash flow from operations after tax amounted to SEK 1.63 (7.60) per
share. Adjusted for the effects of exchange rate movements on the
change in working capital, cash flow after tax was SEK 4.16 (6.68)
Invoiced sales amounted to SEK 611 million (571). The increase is
almost exclusively attributable to the effects of exchange rate
movements. Operating earnings amounted to SEK 31 million (37).
Deliveries to Cardo Pump's biggest segment, water and wastewater,
rose compared to the corresponding period last year, while deliveries
to the pulp and paper industry decreased somewhat. Deliveries to the
building services segment were on a par with last year, despite the
weak German and US construction markets.
In order to further increase customer orientation, Cardo Pump's sales
organization was altered at the turn of the year. Water and
wastewater, industry and building services are now separate marketing
organizations, creating even greater potential to focus on each
During the period, a restructuring of the plant in Mölndal was begun
with a view to improving efficiency and profitability. At the end of
March, negotiations were initiated under the Co-determination in the
Workplace Act regarding reduction of the workforce by 35 people.
Big contracts included a general agreement regarding service for
Severn Trent, which is one of the biggest water boards in the UK,
with responsibility for water and wastewater treatment for more than
8 million people in the area around Birmingham. The agreement, which
covers service, maintenance work and repairs at about 200 pumping
stations, is estimated to be worth more than SEK 15 million. In the
USA, an order was received for almost 100 process pumps for a new
paper machine for the Willamette paper mill in Tennessee. These pumps
will be delivered in 2001 and 2002. In Spain, an order worth
approximately SEK 5 million was received for 8 big submersible pumps
for a treatment plant outside Barcelona.
About Cardo AB
Cardo is an international engineering group with a turnover of
approximately SEK 9.8 billion in 2000. Cardo holds a strong position
in the markets for doors, pumps and rail-vehicle brake systems. Cardo
has subsidiaries in about 30 countries with the focal point resting
in western Europe, and roughly 8,000 employees.
About Cardo Pump
Cardo Pump is one of Europe's largest manufacturers of centrifugal
pumps, mixers and aerators for use in water and wastewater treatment
plants, process industries and the construction sector. Cardo Pump is
also a global leader in the production of sophisticated measuring
instruments for the pulp and paper industry. Its products are
marketed under the brand names ABS, Pumpex and Lorentzen & Wettre.