Alfa Laval AB (publ) Interim report July 1 - September 30, 2018
”Almost all of Alfa Laval’s end markets developed well in the quarter compared to last year, with 11 out of 13 Business Units growing. Sequentially, order intake decreased somewhat, after a very strong second quarter.
The organic growth in the Marine Division remained on a high level and order intake ended up substantially above last year (+68%). The market’s demand for environmental applications continued to be the main growth driver. The business climate in the energy sector also continued to improve versus last year, contributing to the Energy Division’s order growth (+14%). The division’s positive development was wide-spread, covering most end markets. The Food & Water Division also reported higher order intake compared to last year (+6%), with a good development across most end markets. Sequentially the order intake was lower, following two very strong quarters.
The operating profit (adjusted EBITA) continued to grow faster than invoicing, due to improved productivity and good cost control across the company. All three divisions continued to deliver good profitability, contributing to the group reaching an operating margin of 17.1 percent.
At this stage we have not seen any significant impact from geopolitical issues such as trade disputes or political tensions. While we do not expect any change in the short term, the general business sentiment may be negatively impacted in the longer term.”
Tom Erixon, President and CEO
Summary: Third quarter
Order intake increased by 26 percent* to SEK 11,357 (8,418) million.
Net sales increased by 17 percent* to SEK 10,131 (8,169) million.
Adjusted EBITA**: SEK 1,736 (1,310) million.
Adjusted EBITA margin**: 17.1 (16.0) percent.
Result after financial items: SEK 1,458 (1,012) million.
Net income: SEK 1,074 (672) million.
Earnings per share: SEK 2.56 (1.59).
Cash flow from operating activities: SEK 1,350 (1,044) million.
Impact on adjusted EBITA of foreign exchange effects: SEK 50 (19) million.
Impact on result after financial items of comparison distortion items: SEK 39 (-) million.
Summary: First nine months
Order intake increased by 21 percent* to SEK 33,444 (26,848) million.
Net sales increased by 14 percent* to SEK 29,457 (25,202) million.
Adjusted EBITA**: SEK 4,931 (3,999) million.
Adjusted EBITA margin**: 16.7 (15.9) percent.
Result after financial items: SEK 4,426 (3,013) million.
Net income: SEK 3,240 (1,927) million.
Earnings per share: SEK 7.70 (4.57).
Cash flow from operating activities: SEK 3,393 (2,890) million.
Impact on adjusted EBITA of foreign exchange effects: SEK 5 (190) million.
Impact on result after financial items of comparison distortion items: SEK 137 (-) million.
* Excluding currency effects. ** Alternative performance measures.
Outlook for the fourth quarter
“The demand in the fourth quarter is expected to be somewhat higher than in the third quarter.”
Earlier published outlook (July 16, 2018): “We expect that demand during the third quarter 2018 will be somewhat lower than in the second quarter.”
The interim report has been reviewed by the company’s auditors, see page 25 for the review report.
This information is information that Alfa Laval AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out below, at CET 7.30 on October 25, 2018.
For more information, please contact:
Peter Torstensson
Senior Vice President, Communications
Phone: +46 46 36 72 31
Mobile: +46 709 33 72 31
E-mail: peter.torstensson@alfalaval.com
Gabriella Grotte,
Investor Relations Manager
Phone: +46 46 36 74 82
Mobile: +46 709 78 74 82
E-mail: gabriella.grotte@alfalaval.com
Alfa Laval AB (publ)
PO Box 73
SE-221 00 Lund
Sweden
Corporate registration number: 556587-8054
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