Interim report April 1-June 30, 2002

8/22/2002 2:30 AM EST

Interim report April 1 - June 30, 2002

"The first half of the year 2002 developed fully in line with our
expectations. We estimate that this will also be the case for the second
half", says Sigge Haraldsson, CEO Alfa Laval.

In summary:

· The company's shares were listed on the Stockholm Stock Exchange's
O-list on May 17. The initial price was set to 91 SEK per share;
· The new issue of shares in connection with the IPO has together
with on-going amortisation decreased the financial net debt by MSEK 3
491 since the beginning of the year;
· Adjusted EBITA(2) for the second quarter 2002 was MSEK 445 (485).
During the first six months adjusted EBITA amounted to MSEK 807 (851);
· The adjusted EBITA(2)-margin for the second quarter was 12,2
percent (12,7). The adjusted EBITA-margin for the first six months 2002
was 11,7 percent (11,7);
· Net sales during the second quarter was MSEK 3 654 (3 807).
Excluding divested activities and exchange rate variances, net sales
increased during the second quarter 2002 by 1,2 percent. Net sales
amounted to MSEK 6 916 (7 259) for the first six months;
· Orders received during the second quarter were MSEK 3 964 (4 087).
Excluding divested activities and exchange rate variances, orders
received increased during the second quarter by 0,8 percent. Orders
received amounted to MSEK 7 645 (8 205) for the first six months;
· Cash flows from operating activities were MSEK 937 (899) for the
first six months;
· The return on capital employed including goodwill and step up
values amounted to 17,7 percent (15,2) for the first six months;
· The result after financial items was MSEK -193 (46) for the first
six months. Non-recurring costs related to the change in capital
structure in connection with the IPO have burdened the result by MSEK
304.
Expectations for the rest of the year
During the autumn 2001 a decreased demand was noted. For 2002, a
decrease of orders received of approximately 4 % was estimated, with a
weaker first six months and a certain recovery during the last six
months. Despite the further increased uncertainty in the world economy
during the last quarter, the estimate remains.
Despite the downturn in orders received, the EBITA-margin is expected to
improve for the current year compared to 2001. The improved
profitability is achieved through higher gross margins and lower
overheads. The operations are thus very well prepared to further
increase the profitability when the upturn in the economy comes.

Q202 Q201 1.1-30.6 1.1-30.6 2001
2002 2001
Order intake 3 964 4 087 7 645 8 205 15 894
MSEK MSEK MSEK MSEK MSEK
Net sales 3 654 3 807 6 916 7 259 15 830
MSEK MSEK MSEK MSEK MSEK
Adjusted EBITDA 1) 528 MSEK 584 MSEK 978 MSEK 1 053 2 138
MSEK MSEK
Adjusted EBITA 2) 445 MSEK 485 MSEK 807 MSEK 851 MSEK 1 738
MSEK
Adjusted EBITA2)-- 12,2% 12,7% 11,7% 11,7% 11,0%
margin
Result after - 253 - 33 - 193 46 MSEK 42 MSEK
financial items MSEK MSEK MSEK
Return on capital 17,7% 15,2% 18,5%
employed
No. of employees 3) 9 399 9 493 9 399 9 493 9 259

1) Adjusted EBITDA - "Earnings before interests, taxes, depreciation,
amortisation of goodwill and step up values and comparison distortion
items."
2) Adjusted EBITA - "Earnings before interests, taxes, amortisation
of goodwill and step up values and comparison distortion items.
3) Number of employees at the end of the period.








Lund, August 22, 2002





Sigge Haraldsson
President and CEO
Alfa Laval AB (publ)