Alfa Laval AB (publ) Interim report January 1 - March 31, 2014

Comment from Lars Renström, President and CEO

“The order intake was SEK 7.5 billion in the first quarter. Fewer large orders is the main explanation to the sequential downturn. Compared to the corresponding quarter last year order intake increased with 5 percent.

Within Process Technology the base business was stable, whereas the number of large orders decreased from the extraordinary levels of the fourth quarter. At the same time the order intake for Marine & Diesel increased from the high level that was established in the fourth quarter, boosted by the high contracting at the ship yards last year. The environmental solution Alfa Laval PureSOx continued to developed well and several orders were booked from both existing and new customers. The marine service business gathered speed, lifted by an increased demand for spare parts as well as a higher repair activity.  Equipment’s order intake decreased somewhat partly due to the cold winter in the U.S. but also due to the prevailing uncertainty in Russia.

In Central and Eastern Europe both Russia and Turkey were marked by political uncertainty, while the other markets in the region were stable. In Asia the order intake increased somewhat as growth within the base business compensated for fewer large orders. In Western Europe the order intake was slightly higher, whereas fewer large orders affected North America, which however had an unchanged base business.

On April 7 we signed an agreement to acquire the Norwegian company Frank Mohn AS – a leading manufacturer of pumping systems for marine and offshore. We expect the transaction to be closed during May, after approval from regulatory authorities.”

Summary

First three months*

Order intake increased by 5 percent** to SEK 7,474 (7,130) million.
Net sales increased by 2 percent** to SEK 6,597 (6,505) million.
Adjusted EBITA was SEK 1,062 (1,067) million.
Adjusted EBITA-margin was 16.1 (16.4) percent.
Result after financial items was SEK 794 (927) million.
Net income was SEK 564 (703) million.
Earnings per share was SEK 1.34 (1.67).
Cash flow from operating activities was SEK 592 (971) million.
Impact on EBITA of foreign exchange effects was SEK -10 (-32) million.
Impact on result after financial items of comparison distortion items was SEK -60 (-) million.
* 2013 restated to IFRS 11. ** Excluding currency effects.

Dividend

The Board of Directors propose a dividend of SEK 3.75 (3.50) per share.

Outlook for the second quarater

“We expect that demand during the second quarter 2014 will be on about the same level as in the first quarter.”
Earlier published outlook (February 5, 2014): “We expect that demand during the first quarter 2014 will be in line with or somewhat lower than in the fourth quarter.”

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

For more information, please contact:

Peter Torstensson, Senior Vice President, Communications
Phone: +46 46 36 72 31
Mobile: +46 709 33 72 31 
peter.torstensson@alfalaval.com

Gabriella Grotte, Investor Relations Manager
Phone: +46 46 36 74 82  M
obile: +46 709 78 74 82
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 herin pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 12.45 p.m. on April 28, 2014

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