Alfa Laval AB (publ) Interim report April 1 – June 30, 2008

“The demand for Alfa Laval’s products remained on a high level during the second quarter and order intake reached SEK 7.1 billion. The strongest customer segments were Marine & Diesel and Food.

Our high exposure to emerging markets offsets a slowdown in the US and Western Europe, resulting in an organic growth of 5 percent. Asia, Eastern Europe and Latin America accounted for 49 percent of the Group’s order intake. The US was overtaken by China as our largest market during the quarter.

An increase of invoicing with 12 percent to SEK 6.9 billion and a continued favourable product mix contributed to an operating margin of 23.1 percent, corresponding to an EBITA of SEK 1.6 billion.”

Lars Renström, President and CEO

Second quarter:
Order intake increased by 8.1 percent * to SEK 7,066 (6,822) million.
Net sales increased by 16.8 percent * to SEK 6,855 (6,094) million.
Adjusted EBITA was SEK 1,585 (1,130) million, including adverse foreign exchange effects of SEK 88 million.
Adjusted EBITA-margin was 23.1 (18.5) percent.
Result after financial items was SEK 1,456 (1,037) million.
Result after tax increased to SEK 1,038 (733) million.
Earnings per share increased to SEK 2.41 (1.62).
Cash flow from operating activities was SEK 1,200 (488) million.

Six months:
Order intake increased by 8.3 percent * to SEK 14,499 (13,827) million.
Net sales increased by 19.9 percent * to SEK 13,122 (11,244) million.
Adjusted EBITA was SEK 2,995 (1,965) million, including adverse foreign exchange effects of SEK 132 million.
Adjusted EBITA-margin was 22.8 (17.5) percent.
Result after financial items was SEK 2,712 (1,718) million.
Result after tax increased to SEK 1,936 (1,202) million.
Earnings per share increased to SEK 4.47 (2.65).
Cash flow from operating activities was SEK 1,929 (1,038) million.

* excluding exchange rate variations

Outlook for the near future
“We expect the demand to remain on the current high level.”
(unchanged since the fourth quarter and full year 2007 report published on February 6, 2008)

For more information, please contact:
Gabriella Grotte, Investor Relations Manager
Phone: +46 46 36 74 82,
Mobile: +46 709 78 74 82,
E-mail: gabriella.grotte@alfalaval.com

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



Alfa Laval AB (publ) discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 1 p.m. on July 16, 2008.