Alfa Laval AB (publ) Interim report April 1 - June 30, 2020

Cost program protects profitability

  • Order intake on about the same level as last year.
  • Adjusted EBITA margin improved to 17.2 % supported by the cost reduction program.
  • Strong liquidity focus during the quarter increased cash flow from operating activities with SEK 2.2 billion.
  • A recommended public offer of SEK 18 billion concerning Neles was announced on July 13.

Summary

Second quarter

Order intake was unchanged* at SEK 9,749 (10,025) million.
Net sales decreased by 6 percent* to SEK 10,455 (11,339) million. 
Adjusted EBITA**: SEK 1,802 (1,870) million.
Adjusted EBITA margin**: 17.2 (16.5) percent.
Result after financial items: SEK 1,720 (1,832) million.
Net income: SEK 1,296 (1,412) million.                                        
Earnings per share: SEK 3.07 (3.36).
Cash flow from operating activities: SEK 2,844 (609) million.
Impact on adjusted EBITA of foreign exchange effects: SEK 60 (95) million.
Impact on result after financial items of comparison distortion items: SEK - (196) million.

First six months

Order intake decreased by 3 percent* to SEK 21,626 (22,238) million.
Net sales decreased by 2 percent* to SEK 21,045 (21,497) million. 
Adjusted EBITA**: SEK 3,552 (3,598) million.
Adjusted EBITA margin**: 16.9 (16.7) percent.
Result after financial items: SEK 3,106 (3,454) million.
Net income: SEK 2,320 (2,637) million.                                        
Earnings per share: SEK 5.50 (6.26).
Cash flow from operating activities: SEK 3,803 (1,584) million.
Impact on adjusted EBITA of foreign exchange effects: SEK 150 (190) million.
Impact on result after financial items of comparison distortion items: SEK - (196) million.
Return on capital employed (%) **: 22.5 (22.2).
Net debt to EBITDA, times **: 0.58 (1.30).

* Excluding currency effects. ** Alternative performance measures.

 

Outlook for the third quarter

“We expect demand in the third quarter to be somewhat lower than in the second quarter.”
Earlier published outlook (April 23, 2020): “We expect demand in the second quarter to be lower than in the first quarter.”

The Q2 2020 report has not been subject to review by the company’s auditors.

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 7.30 on July 21, 2020.

 

For more information, please contact:

Peter Torstensson
Senior Advisor
Phone: +46 46 36 72 31
Mobile: +46 709 33 72 31
peter.torstensson@alfalaval.com

Joel Davidsson
Interim Investor Relations Manager
Phone: +46 46 36 77 72
Mobile: +46 730 35 46 03
E-mail: joel.davidsson@alfalaval.com

Alfa Laval AB (publ)
PO Box 73
SE-221 00 Lund
Sweden 

Corporate registration number: 556587-8054 

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About Us

Alfa Laval is active in the areas of Energy, Marine, and Food & Water, offering its expertise, products, and service to a wide range of industries in some 100 countries. The company is committed to optimizing processes, creating responsible growth, and driving progress – always going the extra mile to support customers in achieving their business goals and sustainability targets. Alfa Laval’s innovative technologies are dedicated to purifying, refining, and reusing materials, promoting more responsible use of natural resources. They contribute to improved energy efficiency and heat recovery, better water treatment, and reduced emissions. Thereby, Alfa Laval is not only accelerating success for its customers, but also for people and the planet. Making the world better, every day. It’s all about Advancing better™. Alfa Laval has 17,500 employees. Annual sales in 2019 were SEK 46.5 billion (approx. EUR 4.4 billion). The company is listed on Nasdaq OMX.

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