Interim report for January-June 2008

Press release from Elanders AB (publ) 2008-07-11

Net sales rose by 8 % totalling MSEK 1,054 (MSEK 978).
Operating profit amounted to MSEK 56.2 (MSEK 88.4).
Pre-tax profit amounted to MSEK 32.7 (MSEK 69.9).
Net profit was MSEK 26.1 (MSEK 54.7) or SEK 2.66 per share (SEK 5.88 per share) ¹⁾.
Operating cash flow rose to MSEK 129 (MSEK -213).
A dramatic reduction in deliveries to customers in consumer electronics in Europe was noted during the second quarter, which is believed to have affected quarterly profit by MSEK 20 compared with the previous year.
Operating losses during the shutting down process in Östervåla, further unplanned start-up costs for the Italian unit, and temporary problems with the production of educational material in Hungary affected profit negatively by a total of MSEK 16 in the period compared with the previous year.
The general restructuring of Swedish operations is expected to have full effect first in 2009 and has thus far had a negative effect on profits of MSEK 10.
During the second quarter the Group was successful in attaining new business with companies such as Audi, GE Moneybank and Flextronics.
The printing company Mairs Graphische Betriebe GmbH & Co KG in Stuttgart was acquired in May and consolidated into the Group in June, which led to new business with BMW, Volkswagen and Siemens.
In the beginning of February Elanders acquired Seiz Printing Inc. in Atlanta, U.S.A., which is an important platform for deliveries to the Group’s customers on the North American market.
The forecast for 2008 has been changed to an increase in net sales compared with previous year and pre-tax profits of around MSEK 100 and profits after tax of approximately MSEK 75. The previous forecast was an increase in net sales and pre-tax profits compared with 2007, not including capital gains of MSEK 40.6 from the sale of property in Kungsbacka.

¹⁾ There was no dilution during the given periods.

Further information can be found on Elanders’ website www.elanders.com or via e-mail info@elanders.com.

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