LUND, Sweden, Jan 31, 2017 /PRNewswire/ --
"As a result of the strategy review a restructuring programme was launched during the autumn 2016. It developed well and the new organisation became fully operational from first of January this year. The remaining onetime cost of SEK 400 million related to the initiative concerning the manufacturing structure burdened the result in the fourth quarter. This initiative is estimated, in combination with already announced changes, to give annual savings of SEK 500 million in total.
Order intake for the fourth quarter strengthened compared to the third quarter, partly driven by large projects within Process Technology and partly by an increased demand for marine equipment to new cruise ships. A number of larger projects of SEK 545 million in total were announced during the quarter, mainly from the refinery and petrochemical sectors. At the same time, somewhat improved conditions for other parts of the business directed to oil & gas was noted. The order intake within Marine & Diesel was sequentially positive with support from a good ship mix and an improved demand for pumping systems as well as the exhaust gas cleaning system PureSOx. The U.S. Coast Guard's approval of Alfa Laval PureBallast in December means that the conditions for a gradually increased order intake for the system are good, starting in 2017.
The cost development in the quarter was positive. Initiatives within manufacturing and engineering delivered according to plan at the same time as we started to see positive effects from the adjustments within sales and administration. The tied up capital decreased and the cash flow from operating activities was strong with SEK 1.9 billion in the quarter." Tom Erixon, President and CEO
Summary: fourth quarter
Order intake decreased by 11 percent* to SEK 8,709 (9,422) million.
Net sales decreased by 12 percent* to SEK 9,904 (10,805) million.
Adjusted EBITA**: SEK 1,488 (1,751) million.
Adjusted EBITA margin**: 15.0 (16.2) percent.
Result after financial items: SEK 877 (1,390) million.
Net income: SEK 616 (935) million.
Earnings per share: SEK 1.46 (2.22).
Cash flow from operating activities: SEK 1,925 (1,875) million.
Impact on adjusted EBITA of foreign exchange effects: SEK 141 (80) million.
Impact on result after financial items of comparison distortion items: SEK -400 (-) million.
Summary: full year 2016
Order intake decreased by 13 percent* to SEK 32,060 (37,098) million.
Net sales decreased by 10 percent* to SEK 35,634 (39,746) million.
Adjusted EBITA**: SEK 5,553 (6,811) million.
Adjusted EBITA margin**: 15.6 (17.1) percent.
Result after financial items: SEK 3,325 (5,444) million.
Net income: SEK 2,312 (3,861) million.
Earnings per share: SEK 5.46 (9.15).
Cash flow from operating activities: SEK 4,979 (5,850) million.
Impact on adjusted EBITA of foreign exchange effects: SEK 478 (450) million.
Impact on result after financial items of comparison distortion items: SEK -1,500 (-) million.
* Excluding currency effects.
** Alternative performance measures, defined on page 23.
Outlook for the first quarter
"We expect that demand during the first quarter 2017 will be somewhat lower than in the fourth quarter."
Earlier published outlook (October 25, 2016): "We expect that demand during the fourth quarter 2016 will be in line with or somewhat higher than in the third quarter."
The Board of Directors will propose a dividend of SEK 4.25 (4.25) per share to the Annual General Meeting.
The fourth quarter and full year 2016 report has been reviewed by the company's auditors, see page 25 for the review report.
For more information, please contact:
Senior Vice President, Communications
Investor Relations Manager
Alfa Laval AB (publ)
PO Box 73
SE-221 00 Lund
Corporate registration number: 556587-8054
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 January 31, 2017.
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SOURCE Alfa Laval