Alfa Laval AB (publ) Interim report July 1 - September 30, 2010

“Order intake increased by 21 percent to a strong SEK 6.1 billion during the third quarter and thereby surpassed the invoicing for the first time in two years. The development confirmed that demand now is established at a new level. Good growth was reported within most of the segments and regions. North America distinguished itself in particular with a record order within water treatment and strong demand in energy. In addition, India became our fourth largest market during the quarter.

Sales amounted to SEK 5.8 billion and the adjusted operating result to SEK 1.14 billion, which resulted in a strong operating margin of 19.6 percent. Positive mix and foreign exchange effects and good capacity utilisation contributed to the positive profitability development.”

Lars Renström, President and CEO

Summary: third quarter
Order intake increased by 23 percent * to SEK 6,134 (5,071) million.
Net sales increased by 2 percent * to SEK 5,811 (5,814) million. *
Adjusted EBITA was SEK 1,141 (1,002) million.
Adjusted EBITA-margin was 19.6 (17.2) percent.
Result after financial items was SEK 1,044 (901) million.
Net income was SEK 758 (704) million.                                        
Earnings per share was SEK 1.78 (1.65).
Cash flow from operating activities was SEK 1,118 (1,428) million.
Impact on EBITA of foreign exchange effects: SEK 124 (108) million.

Summary: first nine months
Order intake increased by 13 percent * to SEK 17,490 (16,112) million.
Net sales decreased by 6 percent * to SEK 17,551 (19,483) million. 
Adjusted EBITA was SEK 3,345 (3,432) million.
Adjusted EBITA-margin was 19.1 (17.6) percent.
Result after financial items was SEK 3,091 (2,861) million.
Net income was SEK 2,211 (2,105) million.                                        
Earnings per share was SEK 5.20 (4.94).
Cash flow from operating activities was SEK 3,017 (3,781) million.
Impact on EBITA of foreign exchange effects: SEK 324 (306) million.

* excluding exchange rate variations


Outlook for the fourth quarter
“We expect demand during the fourth quarter to be on about the same level as during the third quarter.”

Earlier published outlook (July 20, 2010): “We expect demand during the third quarter to be in line with or somewhat lower than the second 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
Mobile: +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 herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 07.30 (CET) on October 22, 2010.