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Back on course for profitable growth after selling AFT

Measures to sustainably strengthen Group to be proposed to Annual General Meeting. Substantial growth at KRM and Stow – divestment of AFT depresses shareholders' equity.

In those business divisions in which it is continuing operations – KRM

(Dynamic Storage and Retrieval Systems) and Stow (Static Storage

Systems) – the Kardex Group generated a significant increase in

consolidated sales in 2006, up by 16.2% from EUR 326.2 million to EUR

379.1 million. At EUR 18.6 million, the operating result (EBIT) of those

business divisions was slightly ahead of the previous year's figure

(EUR 18.3 million), which reduced the EBIT margin from 5.6% to 4.9%. The

lower EBIT margin was due to start-up problems at the new Stow works,

steel price increases that could not be passed on to the market straight

away, and heavy capital investment in the Sales & Marketing

organization – especially at KRM.

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