Cardo’s capital market days
Cardo is an international engineering group with a turnover of SEK 9.5 billion in 1999. 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 7,700 employees.
Cardo Pump (one part of the Cardo Group) is one of Europe’s largest manufacturers of pumps, mixers and aerators for use in water and wastewater treatment plants, the process industry and the construction sector. Cardo Pump’s products are marketed under the brand names ABS, Pumpex and Lorentzen & Wettre.
“We are going to expand by providing customer benefit, not by selling at low prices”
In connection with Cardo’s capital market days in Holland, Cardo’s
president and CEO Kjell Svensson gave participants from the financial market and media an account that included a description of the efforts being made within the framework of the group's C15 growth program.
“We are going to achieve our growth target for the group, 15 percent annual profitable growth in sales, by means of a number of different efforts in our three business areas Cardo Door, Cardo Pump and Cardo Rail. We have a good starting point for our efforts through our strong market positions.”
“Since our introduction onto the Stockholm Stock Exchange in 1995, we have been able to finance our acquisitions with our own funds. Our financial strength, in combination with a strong cash flow, provides us with excellent scope for further expansion. As to Pump, I see possible acquisitions of both pump manufacturers and a large number of service companies.”
“The most important aspect of our strategy for increased organic growth is our broad focus on the aftermarket in all our business areas. We are quite simply going to be best in service and the aftermarket in the sectors in which we operate. In this area, it will be an increasingly important tool.”
“We are now also concentrating on new markets to a greater extent,and going in for a tougher profile in the markets where we are already established and for new products in all business areas. As regards new markets, we are prioritizing countries in the former Eastern Europe and in China.”
“We are now also improving our applications know-how in order to be able to create more efficient processes for our customers. We are going to expand by providing customer benefit, not by selling at low prices. In this way, we shall expand our customer base as regards both products and the aftermarket. Our goal is to be best when it comes to understanding the customer’s needs and operating in a market-oriented manner.”
Malmö, Sweden, September 27 2000
Cardo AB (publ)