Interim Report January - March 2009

· Net sales were SEK 292.0 m (304.4).
· Operating profit: SEK 21.1 m (24.2).
· Profit after tax amounted to SEK 13.0 m (14.5).
· Earnings per share after tax were SEK 1.97 (2.14).
· The announced rationalization package has had the planned effect and reduced the overhead costs with SEK 9 m in the quarter.
· Sustained strong focus on product and technology development.

COMMENTS FROM FREDRIK JÖNSSON, CEO

"Obviously, the economic crisis, with falling GDP in most countries, has also affected Beijer Electronics. But considering the drastic fall in demand in the world around us and in our sector, I can conclude that Beijer Electronics has asserted itself well.

In profit terms, we also nearly maintained operating margins. The reduction in operating profit is exclusively due to lower sales volumes and lower gross margins. We acted early to make ongoing cost rationalizations and initiated a rationalization package in January. This had an impact on our overheads, which fell by 8 per cent in the quarter, contributing nearly SEK 9 m to operating profit.

Meanwhile, the IDC business area, which is less cyclical, made positive progress, with higher sales and better profits, but the period was tougher for the Automation and HMI Products business areas.

Despite the harsher conditions, we are eager to build for our future. We are continuing to focus strongly on product development in IDC and HMI Products, and accordingly, maintained development expenditure at an unchanged level. In a crisis there are always openings, when attractive acquisition and other opportunities may reveal themselves.

We will remain vigilant to progress. Order intake in the first quarter suggested the market will remain weak, which means we are still prepared to take more savings measures if necessary."

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