Interim report April 1 - June 30, 2003

Alfa Laval AB (publ) Interim report April 1 - June 30, 2003 "Orders received for Alfa Laval have developed as anticipated during the second quarter. The main markets are still weak but some signs of improvement can be noted for certain customer segments as well as geographically. Within the Equipment division orders received, excluding exchange rate variations, were higher than during the first half of 2002, while orders received within the Process Technology division were lower. Orders received from the aftermarket, Parts & Service continued to increase. As anticipated, the result after financial items improved substantially during the period, despite adverse effects of exchange rate variations." Sigge Haraldsson, President and CEO, Alfa Laval Summary of the second quarter 2003: - Order intake, excluding exchange rate variations, decreased by 1.6 percent to SEK 3,554 million. - Net sales, excluding exchange rate variations, increased by 1.6 percent to SEK 3,402 million. - Adjusted EBITA was SEK 412 (445) million, including adverse foreign exchange effects of approximately SEK 65 million. - Adjusted EBITA-margin was 12.1 percent (12.2). - Result after financial items increased to SEK 214 (-253) million. - Cash flow from operating activities was SEK 435 (585) million. Summary of the first six months 2003: - Order intake, excluding exchange rate variations, decreased by 0.4 percent to SEK 6,932 million. - Net sales, excluding exchange rate variations, increased by 1.4 percent to SEK 6,397 million. - Adjusted EBITA was SEK 734 (807) million, including adverse foreign exchange effects of approximately SEK 115 million. - Adjusted EBITA-margin was 11.5 percent (11.7). - Result after financial items increased to SEK 355 (-193) million. - Result after tax increased to SEK 272 (-321) million. - Earnings per share increased to SEK 2.44 (-5.45). - Cash flow from operating activities was SEK 650 (937) million. Outlook 2003 Alfa Laval is expecting the orders received during 2003 to show a limited increase compared to 2002 excluding translation differences. The major part of this increase is expected through acquired activities together with a marginal organic growth during the latter part of 2003. The restructuring programme "Beyond Expectations", that is to be completed by the end of 2003 will give continued savings during the year. Additional savings initiatives are implemented to reduce the negative impact from foreign exchange. Profit before tax will show a major improvement. Earlier published outlook (April 26, 2003): As in previous outlook, Alfa Laval is expecting the orders received during 2003 to show a limited increase compared to 2002 excluding translation differences. The major part of this increase is expected through acquired activities together with a marginal organic growth during the latter part of 2003. It must though be added that the uncertainty that is characterizing the situation in the world of course means that all forecasts are uncertain. The restructuring programme "Beyond Expectations", that is to be completed by the end of 2003, will give continued savings during the year. Foreign exchange translation as well as transaction exposures are expected to have a larger negative impact than previously anticipated on the adjusted EBITA. The interim report has been issued on August 14, 2003 by the President and Chief Executive Officer Sigge Haraldsson by proxy. The interim report has not been subject to review by the company's auditors. Date for the next financial report The interim report for the third quarter of 2003 will be published on October 28, 2003. Capital Market Day Alfa Laval will arrange a Capital Market Day in Copenhagen on September 16, 2003. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2003/08/14/20030814BIT00020/wkr0001.doc The full report http://www.waymaker.net/bitonline/2003/08/14/20030814BIT00020/wkr0002.pdf The full report