Decision on action program at Cardo Pump

05.10.2001

With staff reductions and the closure of some regional offices Cardo Pump, one of Europe's leading manufacturers of pumps, mixers and aerators for water and wastewater applications, industry, and the building services sector - well-known under its brand names ABS, Pumpex and Lorentzen & Wettre - plans to adapt to the market situation.

The action program that was announced previously for the Cardo Pump business area has now been decided. The cost of the measures, which is expected to amount to approximately SEK 45 million, will be charged to earnings for the third quarter of this year. The measures are expected to improve earnings by approximately SEK 30 million and to take full effect as of 2003.

In connection with the Cardo group half-yearly report, cost-saving measures were announced for Cardo Pump, especially as regards operations in markets with falling demand.

"Pump has shown a declining operating margin for a period of time. By means of measures such as those we are now adopting, we will reverse this trend; and our aim is to achieve an operating margin of 10-11 percent for the business area within a two-year period," says Cardo's president and CEO Kjell Svensson.

The action program, which has now been decided, mainly comprises staff reductions and the closure of some regional offices. The cost of the measures is expected to amount to approximately SEK 45 million and will be charged to earnings for the third quarter of 2001. The measures are expected to improve earnings by approximately SEK 30 million and to take full effect as of 2003.

About Cardo Pump

Cardo Pump, which has a turnover of approximately SEK 2.5 billion, is a business area in the Cardo group and one of Europe's leading manufacturers of pumps, mixers and aerators for water and wastewater applications, industry, and the building services sector. Cardo Pump is also a global leader in the production of sophisticated measurement instruments for the pulp and paper industry.

About Cardo

Cardo is an international engineering group with a turnover of approximately SEK 10 billion. 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.

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