Alfa Laval AB (publ) Fourth quarter and full year 2004

"During the fourth quarter the order intake increased by five percent, excluding exchange rate variations, compared with the strong fourth quarter 2003. For the full year 2004 the order intake increased by 15 percent, an unusually strong increase for Alfa Laval. During the first half of 2004 growth was prioritised, while profitability has been emphasized during the second half. The operating result as well as the operating margin were on the same level as the fourth quarter 2003, in spite of adverse exchange rate variations of close to SEK 100 million.” Lars Renström, President and CEO, Alfa Laval

Summary of the fourth quarter 2004: - Order intake increased to SEK 3,771 (3,750) million, meaning an increase by 4.7 percent excluding exchange rate variations. - Net sales increased to SEK 4,166 (4,086) million, meaning an increase by 5.8 percent excluding exchange rate variations. - Adjusted EBITA increased to SEK 466 (463) million, including adverse foreign exchange effects of SEK 98 million. - Adjusted EBITA-margin was 11.2 (11.3) percent. - Result after financial items increased to SEK 303 (275) million. - Cash flow from operating activities was SEK 302 (629) million. Summary of the full year 2004: - Order intake increased to SEK 15,740 (14,145) million, meaning an increase by 15.2 percent excluding exchange rate variations. - Net sales increased to SEK 14,986 (13,909) million, meaning an increased by 11.7 percent excluding exchange rate variations. - Adjusted EBITA increased to SEK 1,695 (1,627) million, including adverse foreign exchange effects of SEK 322 million. - Adjusted EBITA-margin was 11.3 (11.7) percent. - Result after financial items increased to SEK 1,070 (817) million. - Result after tax was SEK 603 (646) million. - Earnings per share were SEK 5.40 (5.78). - Cash flow from operating activities was SEK 1,118 (1,654) million. - The Board of Directors will propose a dividend of SEK 4.75 (4.00) per share at the shareholders’ meeting. Outlook for the near future “In most of the markets that Alfa Laval serves the demand is expected to be on the same high level as during 2004. Alfa Laval also believes that the current high price level for some raw materials will remain, at least short term.”