Alfa Laval AB (publ) Interim report January 1 - March 31, 2017

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Summary

First three months

Order intake increased by 9 percent* to SEK 8,801 (7,710) million.

Net sales decreased by 6 percent* to SEK 8,126 (8,199) million.

Adjusted EBITA**: SEK 1,279 (1,333) million.

Adjusted EBITA margin**: 15.7 (16.3) percent.

Result after financial items: SEK 1,268 (1,090) million.

Net income: SEK 776 (871) million.                                          

Earnings per share: SEK 1.84 (2.06). 

Cash flow from operating activities: SEK 804 (910) million.

Impact on adjusted EBITA of foreign exchange effects: SEK 75 (93) million.

* Excluding currency effects. ** Alternative performance measures, defined on page 22.

Comment from Tom Erixon, President and CEO

“The order intake during the first quarter was marginally higher than the previous quarter and 14 percent better than the corresponding period last year. We booked large orders at a value of SEK 585 million in total, which was more than we had expected and also slightly higher than the previous quarter.

The Marine Division’s order intake grew due to a strong quarter for Pumping Systems and a slightly increased demand for Alfa Laval PureBallast and PureSOx. The Food & Water Division’s order intake continued to increase in the quarter, with a positive development within most product and application areas. The Energy Division developed well compared to last year, even if the order intake decreased somewhat sequentially due to a lower value for larger projects.

The restructuring of the Group continued according to plan. The entities within “Greenhouse” have a new operating structure and achieved significant result improvements during the quarter. We also saw effects from the restructuring programme in the form of lower costs for sales and administration at the same time as Operations continuous measures compensated for the lower utilisation. The ongoing “Footprint” programme has not yet impacted the result.

In parallel with the restructuring programme the implementation of the new strategy continued. The increased efforts within R&D in order to renew important product groups faster is running as planned. The measures that focus on growing the service business are also implemented according to plan. Finally, the work with shortening decision-making processes as well as lead times to customers is ongoing with support of the new organisation. The most important goal with the new direction is to restore the organic growth and 2017 has had a good start.”

Dividend

The Board of Directors propose a dividend of  SEK 4.25 (4.25) per share.

Outlook for the second quarter

“We expect that demand during the second quarter 2017 will be in line with or somewhat lower than in the first quarter.”

Earlier published outlook (January 31, 2017): “We expect that demand during the first quarter 2017 will be somewhat lower than in the fourth 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 

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 12.45 on April 26, 2017.