Alfa Laval AB (publ) Interim report April 1 - June 30, 2017

“The order intake for the second quarter was SEK 9.6 billion, which was 9 percent above the previous quarter and 19 percent better than the corresponding quarter last year. High activity in many of our end markets and large orders at a value of SEK 500 million contributed to an outcome that was better than we had expected.

The order intake for the Food & Water Division grew with 7 percent compared to the already high level of the previous quarter. The upturn was broad and included most end markets. The base business showed a good development, as did the project business that was lifted by mid-size projects as well as the large order within vegetable oil of SEK 125 million that was booked in Brazil.

The Marine Division’s order intake was basically unchanged from the previous quarter. The continued low contracting during the end of last year and the beginning of the current year impacted Alfa Laval’s order intake negatively. A stronger market for tankers and cruise ships, as a part of the total contracting, however, gave support, as did the demand for marine environmental applications, that developed well during the quarter.

The order intake for the Energy Division grew with 17 percent compared to the previous quarter. A positive development within the base business, partly boosted by a seasonal increase within HVAC and three large orders within refinery and gas treatment contributed to the division’s good outcome. The order intake from the oil and gas sector grew, but from a low level.

The result has been burdened by unrealised exchange rate differences in the financial net due to revaluation of loans.

The measures within the frame of Alfa Laval’s restructuring programme proceeded according to plan. The operations within Greenhouse continued to improve and delivered a positive result for the quarter. The savings measures within sales and administration generated a cost reduction compared to the previous year and more initiatives were announced within production – entirely according to plan.”

Tom Erixon, President and CEO

Summary: second quarter
Order intake increased by 14 percent* to SEK  9,629 (8,101) million.
Net sales decreased by 4 percent* to SEK  8,907 (8,950) million.
Adjusted EBITA **: SEK 1,410 (1,393) million.
Adjusted EBITA margin **: 15.8 (15.6) percent.
Result after financial items : SEK 733 (1,265) million.
Net income : SEK 479 (931) million.
Earnings per share : SEK 1.14 (2.21) .  
Cash flow from operating activities : SEK 1,042 (1,233) million.
Impact on adjusted EBITA of foreign exchange effects : SEK 96 (137) million.

Summary: first six months
Order intake increased by 11 percent* to SEK  18,430 ( 15,811 ) million.
Net sales decreased by 5 percent* to SEK  17,033 (17,149) million.
Adjusted EBITA **: SEK 2,689 (2,726) million.
Adjusted EBITA margin **: 15.8 (15.9) percent.
Result after financial items : SEK 2,001 (2,355) million.
Net income : SEK 1,255 (1,802) million.
Earnings per share : SEK 2.98 (4.27) .  
Cash flow from operating activities : SEK 1,846 (2,143 ) million.
Impact on adjusted EBITA of foreign exchange effects : SEK  171 (230) million.

* Excluding currency effects.
** Alternative performance measures, defined on page 23.

Outlook for the third quarter:
“We expect that demand during the third quarter 2017 will be lower than in the second quarter.”
Earlier published outlook (April 26, 2017): “We expect that demand during the second quarter 2017 will be in line with or somewhat lower than in the first quarter.”

The interim report has not been subject to review by the company’s auditors.

For more information, please contact:
Peter Torstensson, Senior Vice President, Communications
Phone: +46 46 36 72 31
Mobile: +46 709 33 72 31 
peter.torstensson@alfalaval.com

Gabriella Grotte, Investor Relations Manager 
Phone: +46 46 36 74 82
Mobile: +46 709 78 74 82
gabriella.grotte@alfalaval.com

Alfa Laval AB (publ) 
PO Box 73 
SE-221 00 Lund 
Sweden
Corporate registration number: 556587-8054

This information is information that Alfa Laval AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out below, at CET 11.45 on July 17, 2017.

Tags:

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.

Subscribe

Documents & Links