LUND, Sweden--Regulatory News:
Alfa Laval (STO:ALFA)
"Order intake was marginally better than in the first quarter and in line with our expectations. The large projects in the market were still very few at the same time as demand was slow within the oil & gas and marine sectors. During the quarter external prognoses for the 2016 ship contracting were reduced to the range 650-850 from about 900. This is a low figure and in line with how we perceive the market.
The order intake in the quarter was supported by a number of sectors, such as food. Geographically, the growth continued in Eastern Europe, including Russia. Excluding the Marine business, Asia also continued to grow with China as the main engine. Sequentially, the U.S. showed good growth, but compared to the same quarter last year the order intake is negatively impacted by the downturn within the oil & gas sector.
The outcome per division was mixed. The operating margin in Process Technology continued to be burdened by a negative mix, which is expected to remain during the rest of the year. The Marine & Diesel division showed a flat order intake in the quarter, with a downturn in two segments at the same time as the demand within Pumping Systems grew. The profitability continued to be good. The Equipment division had a good quarter with good growth, especially in the food sector and in addition a stable operating margin.
The strategic review that was announced in the previous quarter is continuing according to plan. The result of this review will be presented before the end of the year.”
Tom Erixon, President and CEO
Summary: second quarter
Order intake decreased by 9 percent* to SEK 8,101 (9,146) million.
Net sales decreased by 9 percent* to SEK 8,950 (10,177) million.
Adjusted EBITA**: SEK 1,393 (1,816) million.
Adjusted EBITA margin**: 15.6 (17.8) percent.
Result after financial items: SEK 1,265 (1,455) million.
Net income: SEK 931 (1,075) million.
Earnings per share: SEK 2.21 (2.54).
Cash flow from operating activities: SEK 1,233 (1,505) million.
Impact on adjusted EBITA of foreign exchange effects: SEK 137 (182) million.
Summary: first six months
Order intake decreased by 14 percent* to SEK 15,811 (18,990) million.
Net sales decreased by 8 percent* to SEK 17,149 (19,248) million.
Adjusted EBITA**: SEK 2,726 (3,385) million.
Adjusted EBITA margin**: 15.9 (17.6) percent.
Result after financial items: SEK 2,355 (2,718) million.
Net income: SEK 1,802 (1,938) million.
Earnings per share: SEK 4.27 (4.59).
Cash flow from operating activities: SEK 2,143 (2,606) million.
Impact on adjusted EBITA of foreign exchange effects: SEK 230 (330) million.
* Excluding currency effects. ** Alternative performance measures, defined on page 22.
Outlook for the third quarter:
“We expect that demand during the third quarter 2016 will be in line with or somewhat lower than in the second quarter.” Earlier published outlook (April 25, 2016): “We expect that demand during the second quarter 2016 will be on about the same level as in the first quarter.”
The interim report has not been subject to review by the company's auditors.
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 11.45 on July 18, 2016.
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