Alfa Laval AB (publ) First quarter 2018
Comment from Tom Erixon, President and CEO
”Demand in important end markets strengthened in the first quarter compared to the fourth quarter 2017. Improved activity in upstream oil and gas, on shore, as well as in the off-shore sector contributed to both Energy and Marine reporting a somewhat better order intake than we had expected. Food & Water saw a continued positive development, with an added contribution from a large brewery order. Combined, order intake in the quarter came in at just above SEK 10 billion.
The productivity development in the Group was strong in the quarter driven by an increased factory load while retaining the effects from the cost-savings program. In combination with a good mix
in the first quarter compared to the fourth quarter 2017. Improved activity in upstream oil and gas, on shore, as well as in the off-shore sector contributed to both Energy and Marine reporting a somewhat better order intake than we had expected. Food & Water saw a continued positive development, with an added contribution from a large brewery order. Combined, order intake in the quarter came in at just above SEK 10 billion.
The productivity development in the Group was strong in the quarter driven by an increased factory load while retaining the effects from the cost-savings program. In combination with a good mix compared to the previous quarter, the gross margin improved to just above 38 percent. We maintained the positive effects on the gross margin level down to the adjusted EBITA margin, which improved to 16.9 percent.
As earlier announced, the capital expenditure level will be on a higher level in 2018-19 due to the ongoing manufacturing restructuring program. Due to the strong growth trend in order intake additional investment decisions will be made to ensure capacity and delivery performance in our supply chain. The capital expenditure for 2018 is therefore expected to increase somewhat, compared to the earlier forecast of SEK 1 billion.”
Summary
First three months
Order intake increased by 16 percent* to SEK 10,025 (8,801) million.
Net sales increased by 11 percent* to SEK 8,851 (8,126) million.
Adjusted EBITA**: SEK 1,497 (1,279) million.
Adjusted EBITA margin**: 16.9 (15.7) percent.
Result after financial items: SEK 1,469 (1,268) million.
Net income: SEK 1,049 (776) million.
Earnings per share: SEK 2.49 (1.84).
Cash flow from operating activities: SEK 666 (804) million.
Impact on adjusted EBITA of foreign exchange effects: SEK 35 (75) million.
Impact on result after financial items of comparison distortion items: SEK 67 (-) million.
* Excluding currency effects. ** Alternative performance measures.
Dividend
The Board of Directors propose a dividend of SEK 4.25 (4.25) per share.
Outlook for the second quarter
“We expect that demand during the second quarter 2018 will be on the same level as in the first quarter.”
Earlier published outlook (January 30, 2018): “We expect that demand during the first quarter 2018 will be somewhat lower than in the fourth quarter.”
The interim report has not been subject to review by the company’s auditors.
For more information
Peter Torstensson,
Senior Vice President,
Communications
Tel: +46 46 36 72 31
Mobile:e +46 709 33 72 31
peter.torstensson@alfalaval.com
Gabriella Grotte,
Investor Relations
Tel: +46 46 36 74 82
Mobil:e +46 709 78 74 82
gabriella.grotte@alfalaval.com
Alfa Laval AB (publ)
Box 73
221 00 Lund
Sweden
Organization 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 12.45 on April 23, 2018.
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