Alfa Laval AB (publ) Interim report January 1 – March 31, 2008

“The demand for Alfa Laval’s products was strong and order intake reached the record level of SEK 7.4 billion. The strongest customer segments were Energy & Environment and Marine & Diesel.

Our high exposure to emerging markets offset a slowdown in the US, resulting in an organic growth of 6 percent. Combined, Asia, Eastern Europe and Latin America accounted for 51 percent of the Group’s order intake.

The combination of an increase in invoicing of 22 percent to SEK 6.3 billion, a continued favourable product mix and high internal efficiency resulted in an operating margin of 22.5 percent, corresponding to SEK 1.4 billion.

We are well positioned for the future, with strong positions in the energy, environment and food areas.”

Lars Renström, President and CEO

First quarter:
Order intake increased by 8.5 percent * to SEK 7,433 (7,005) million.
Net sales increased by 23.6 percent * to SEK 6,267 (5,150) million.
Adjusted EBITA was SEK 1,410 (835) million, including adverse foreign exchange effects of SEK 44 million.
Adjusted EBITA-margin was 22.5 (16.2) percent.
Result after financial items was SEK 1,256 (681) million.
Result after tax increased to SEK 898 (469) million.
Earnings per share increased to SEK 8.26 (4.11).
Cash flow from operating activities was SEK 729 (550) 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)