Improved Group performance:
Revenues of 15% (currency adjusted)
Operating margin up from 8% to 15% (currency adjusted)
Substantial growth and all time high order back log in Industrial processing technology
Significantly improved performance in Material handling West Coast operations
Flat development in Collection technology, currency adjusted

Collection technology
Revenues in the segment equaled 446 MNOK in the second quarter, down from 473 MNOK in second quarter last year. After adjustment for currency change, revenues were up 2 percent. Gross margin was 45%, compared to 46% last year. Operating profit was 73 MNOK, down from 92 MNOK in second quarter 2009 (down from 78 MNOK currency adjusted).

Material handling
Revenues in the business area were 41.1 MUSD in second quarter 2010, up from 34.9 MUSD last year. In USD, revenues were up 18%. Gross margin was 24%, up from 15% same period last year. Operating profit improved from 0.4 MUSD in second quarter 2009 to 5.1 MUSD in second quarter 2010. The improved performance was due to higher volumes on the East Coast and better margins/lower costs on the West Coast.

Industrial processing technology
Revenues in the quarter increased to 178 MNOK from 118 MNOK last year. This represents a 51 percent increase, mainly due to higher activity within TiTech. Adjusted for currency change and the divestment of Presona, revenues were up 76 percent. Gross margin was 53% in second quarter 2010, unchanged from 2009. The business area made an operating profit before other items of 34 MNOK in the second quarter this year compared to a loss of 11 MNOK same period last year.

The rate of order intake has improved in both companies and the order book in the segment increased from 162 MNOK to 216 MNOK during second quarter 2010, which is an all time high.

Asker, 16 July 2010
Tomra Systems ASA