Alfa Laval AB (publ) Interim report July 1 - September 30, 2014
"The order intake reached a record level of SEK 9.7 billion during the third quarter - a sequential increase of 8 percent. Compared to the third quarter last year the increase was 31 percent. The turnover rose by 29 percent and the result after financial items by 16 percent, excluding the comparison distorting item of SEK 260 million that was charged to the quarter. The item refers to a cost reduction programme that during the fourth quarter 2015 is expected to give savings of SEK 300 million on an annual basis.
Process Technology’s order intake was sequentially unchanged in the third quarter. The demand within oil and gas extraction developed very well, especially in North America. Within Marine & Diesel the order intake rose significantly through the acquisition of Frank Mohn AS. However, excluding the acquisition, the effects of a decreased yard contracting are starting to show, while the demand for exhaust gas cleaning systems continued to be good. Equipment saw a limited downturn compared to the record level in the second quarter. Sanitary declined, among others, due to a lower demand from the dairy industry and the effects of the conflict between Russia and Ukraine.
In North America the growth was strong, thanks to several large orders from the oil and gas industry. China had a positive development despite fewer large projects. Europe saw fewer large orders and a negative impact from the conflict in Ukraine.”
Lars Renström, President and CEO
Summary: third quarter *
Order intake increased by 26 percent** to SEK 9,708 (7,415) million.
Net sales increased by 24 percent** to SEK 9,272 (7,172) million.
Adjusted EBITA was SEK 1,545 (1,198) million.
Adjusted EBITA margin was 16.7 (16.7) percent.
Result after financial items ** was SEK 991 (1,075) million.
Net income was SEK 697 (822) million.
Earnings per share was SEK 1.65 (1.95).
Cash flow from operating activities was SEK 1,667 (994) million.
Impact on EBITA of foreign exchange effects was SEK -7 (-47) million.
Impact on result after financial items of comparison distortion items was SEK -260 (-) million.
Summary: first nine months *
Order intake increased by 17 percent** to SEK 26,151 (22,069) million.
Net sales increased by 13 percent** to SEK 24,292 (21,192) million.
Adjusted EBITA was SEK 3,955 (3,502) million.
Adjusted EBITA margin was 16.3 (16.5) percent.
Result after financial items ** was SEK 2,944 (2,971) million.
Net income was SEK 2,057 (2,169) million.
Earnings per share was SEK 4.88 (5.15).
Cash flow from operating activities was SEK 3,433 (3,003) million.
Impact on EBITA of foreign exchange effects was SEK ‑27 (-142) million.
Impact on result after financial items of comparison distortion items was SEK -320 (-) million.
* 2013 restated to IFRS 11.
** Excluding currency effects.
Outlook for the fourth quarter:
“We expect that demand during the fourth quarter 2014 will be on about the same level as in the third quarter.”
Earlier published outlook (July 17, 2014): “We expect that demand during the third quarter 2014 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 26 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 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 28, 2014.
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