Alfa Laval AB (publ) Interim report July 1 - September 30, 2012
“Order intake was SEK 7.3 billion during the third quarter, a decrease with 9 percent compared to the corresponding quarter 2011 and a sequential decline with 8 percent. The outcome was somewhat below our expectations.
Order intake for the Process Technology division was on a continued high level, partly driven by a good development for the Energy & Environment segment. The Equipment division had a good quarter. The Marine & Diesel division had a sequential decline of 15 percent, reflecting the low contracting levels at the ship yards earlier this year.
North and South America were the regions that delivered growth both compared to 2011 and sequentially. China reported continued growth, partly driven by an increased local presence.
During the quarter Alfa Laval strengthened the position within municipal and industrial wastewater treatment. Both through a new factory for manufacturing of decanters in China and an acquisition in the U.S. of a leading provider of belt filter presses, which is a complement and alternative to Alfa Laval’s decanter range.
Sales decreased by 7 percent to SEK 7.1 billion at the same time as the operating result was SEK 1.2 billion, corresponding to an operating margin of 16.7 percent. The operating margin was thus somewhat improved compared to the second quarter. Sales and administration costs were reduced by 6 percent for comparable entities, while research and development increased according to plan with 4 percent. The cash flow continued to be strong."
Lars Renström, President and CEO
Summary: third quarter
Order intake decreased by 6 percent* to SEK 7,288 (8,018) million.
Net sales decreased by 4 percent* to SEK 7,052 (7,571) million.
Adjusted EBITA was SEK 1,177 (1,431) million.
Adjusted EBITA margin was 16.7 (18.9) percent.
Result after financial items ** was SEK 1,230 (1,113) million.
Net income was SEK 849 (780) million.
Earnings per share was SEK 2.02 (1.84).
Cash flow *** was SEK 992 (1,031) million.
Impact on EBITA of foreign exchange effects was SEK -63 (-114) million.
Impact on result after financial items of:
- Aalborg integration costs was SEK - (-) million.
Summary: first nine months
Order intake increased by 5 percent* to SEK 23,087 (21,897) million.
Net sales increased by 5 percent* to SEK 21,694 (20,503) million.
Adjusted EBITA was SEK 3,594 (3,900) million.
Adjusted EBITA margin was 16.6 (19.0) percent.
Result after financial items was SEK 3,357 (3,295) million.
Net income was SEK 2,305 (2,317) million.
Earnings per share was SEK 5.47 (5.47).
Cash flow *** was SEK 2,669 (2,138) million.
Impact on EBITA of foreign exchange effects was SEK -76 (-388) million.
Impact on result after financial items of:
- Aalborg integration costs was SEK - (-80) million.
* excluding exchange rate variations ** Q3 2012 includes financial exchange rate differences of SEK +233 million
*** from operating activities
Outlook for the fourth quarter:
“We expect that demand during the fourth quarter 2012 will be in line with or somewhat lower than in the third quarter.”
Earlier published outlook (July 17, 2012): “We expect that demand during the third quarter 2012 will be on about the same level as in the second quarter.”
The interim report has been reviewed by the company’s auditors, see page 25 for the review report.
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 8
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 23, 2012.
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