Alfa Laval AB (publ) Interim Report April 1 - June 30, 2018

LUND, Sweden, July 16, 2018 /PRNewswire/ -- "Order intake during the second quarter was significantly stronger than earlier expected, with contributions from all three divisions. The Marine Division's order intake increased by 37 percent sequentially, mainly driven by an increased contracting within the tanker segment – which lifted the demand for pumping systems – and a significantly increased order intake pace for environmental products. The Energy Division also had a positive development, both sequentially and compared to last year, driven by a strong base business and a number of large orders. The order intake in Food & Water was continued strong, with a substantial increase in the base business. The extensive product launch programme has positively impacted the order intake in the quarter.

Geographically, the second quarter was characterized by sequentially increased demand in most of Alfa Laval's end markets. Also compared to last year, the development was very good. Asia showed a considerable growth, with an order intake increase of 41 percent. Europe also showed a strong development with a 19 percent increase. In total the order intake in the quarter was SEK 12,062 million, an increase compared to last year by 25 percent and sequentially with 20.

The operating income (adjusted EBITA) increased by 20 percent to SEK 1,698 million in the quarter due to an increased invoicing, while the operating margin was 16.2 percent. The margin was impacted positively by an increased productivity and negatively by a lower aftermarket share and currency effects. The ongoing change work within the production structure, the so-called Footprint programme, and extensive product launches contributed to higher costs in the quarter." Tom Erixon, President and CEO

Summary: Second quarter

Order intake increased by 21 percent* to SEK 12,062 (9,629) million.

Net sales increased by 14 percent* to SEK 10,475 (8,907) million.

Adjusted EBITA**: SEK 1,698 (1,410) million.

Adjusted EBITA margin**: 16.2 (15.8) percent.

Result after financial items: SEK 1,499 (733) million.

Net income: SEK 1,117 (479) million.

Earnings per share: SEK 2.65 (1.14).

Cash flow from operating activities: SEK 1,377 (1,042) million.

Impact on adjusted EBITA of foreign exchange effects: SEK -40 (96) million.

Impact on result after financial items of comparison distortion items: SEK 31 (-) million.

Summary: First six months

Order intake increased by 19 percent* to SEK 22,087 (18,430) million.

Net sales increased by 13 percent* to SEK 19,326 (17,033) million.

Adjusted EBITA**: SEK 3,195 (2,689) million.

Adjusted EBITA margin**: 16.5 (15.8) percent.

Result after financial items: SEK 2,968 (2,001) million.

Net income: SEK 2,166 (1,255) million.

Earnings per share: SEK 5.14 (2.98).

Cash flow from operating activities: SEK 2,043 (1,846) million.

Impact on adjusted EBITA of foreign exchange effects: SEK -5 (171) million.

Impact on result after financial items of comparison distortion items: SEK 98 (-) million.

* Excluding currency effects.

** Alternative performance measures.

Outlook for the third quarter

"We expect that demand during the third quarter 2018 will be somewhat lower than in the second quarter."

Earlier published outlook (April 23, 2018): "We expect that demand during the second quarter 2018 will be on the same level as in the first quarter."

The interim report has not been subject to review by the company's auditors.

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 12.00 on July 16, 2018.

For more information, please contact:
Peter Torstensson,
Senior Vice President, Communications
Phone: +46-46-36-72-31
Mobile: +46-709-33-72-31 
[email protected]

Gabriella Grotte,
Investor Relations Manager
Phone: +46-46-36-74-82,
Mobile: +46-709-78-74-82, 
[email protected] 

Alfa Laval AB (publ)
PO Box 73
SE-221 00 Lund
Sweden
Corporate registration number: 556587-8054

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SOURCE Alfa Laval