Alfa Laval AB (publ) Fourth quarter and full year 2006

Another record quarter
“The fourth quarter was exceptionally strong. The orders received in the quarter increased with 33 percent and reached a record level of SEK 6.7 billion.
The operating margin in the quarter was exceptionally strong. It reached a record level of 16.9 percent, in absolute figures SEK 1,018 million. The very good volume leverage shows that our internal processes work efficiently. Our consistent focus on profitability continues to pay off.
All geographical regions performed very well. Orders received in North America increased with 90 percent and in Asia with 56 percent. In the US the growth was mainly driven by the acquisition of Tranter and the strong bioethanol market.
The strongest customer segments were Marine & Diesel and Process Industry.”

Lars Renström, President and CEO, Alfa Laval

Summary of the fourth quarter 2006:
- Order intake was SEK 6,672 (5,020) million, meaning an increase by 40.5 percent excluding exchange rate variations.
- Net sales was SEK 6,040 (4,684) million, meaning an increase by 35.7 percent excluding exchange rate variations.
- Adjusted EBITA was SEK 1,018 (535) million, including positive foreign exchange effects of SEK 5 million.
- Adjusted EBITA-margin was 16.9 (11.4) percent.
- The sale of the biopharm engineering activity has generated a realised loss of SEK -125 million.
- Result after financial items was SEK 751 (276) million.
- Cash flow from operating activities was SEK 995 (838) million.
Summary of the full year 2006:
- Order intake was SEK 24,018 (18,516) million, meaning an increase by 29.9 percent excluding exchange rate variations.
- Net sales was SEK 19,802 (16,330) million, meaning an increase by 21.4 percent excluding exchange rate variations.
- Adjusted EBITA was SEK 3,010 (1,766) million, including positive foreign exchange effects of SEK 61 million and reversal of provisions of SEK 40 million.
- Adjusted EBITA-margin was 15.2 (10.8) percent.
- Result after financial items was SEK 2,375 (1,099) million.
- Result after tax was SEK 1,725 (928) million.
- Earnings per share was SEK 15.10 (7.92).
- Cash flow from operating activities was SEK 2,619 (1,617) million.
- The Board of Directors will propose a dividend of SEK 6.25 (5.10) per share and a mandate for repurchase of up to 10 percent of the issued shares at the shareholders’ meeting.

Outlook for the near future

"In most of the markets, geographical as well as customer segments that Alfa Laval serves, a continued very strong demand is expected."

About Us

Alfa Laval is a leading global provider of specialized products and engineering solutions based on its key technologies of heat transfer, separation and fluid handling. The company’s equipment, systems and services are dedicated to assisting customers in optimizing the performance of their processes. The solutions help them to heat, cool, separate and transport products in industries that produce food and beverages, chemicals and petrochemicals, pharmaceuticals, starch, sugar and ethanol. Alfa Laval’s products are also used in power plants, aboard ships, oil and gas exploration, in the mechanical engineering industry, in the mining industry and for wastewater treatment, as well as for comfort climate and refrigeration applications. Alfa Laval’s worldwide organization works closely with customers in nearly 100 countries to help them stay ahead in the global arena. Alfa Laval is listed on Nasdaq OMX, and, in 2016, posted annual sales of about SEK 35.6 billion (approx. 3.77 billion Euros). The company has about 17 000 employees.

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