2018-01-30 Financial news

Alfa Laval AB (publ) Fourth quarter and full year 2017

“2017 has for Alfa Laval been a year marked by a broad economic upswing and a stable increase in demand within most sectors. The fourth quarter was also characterized by the positive development and resulted in a sequential increase in order intake of 16 percent, which was somewhat higher than expected.

The contracting for new ships at the ship yards increased by about 50 percent compared to 2016. This had a significant effect on the order intake in the Marine Division during the year as well as in the fourth quarter, when a sequential upturn of 27 percent was reported. The best performance was found in Pumping Systems, which had very short lead times from the contracting at the yards until the order was booked in Alfa Laval. In the Food & Water Division the positive trend that has been seen during the year continued and the order intake grew by 6 percent sequentially in the fourth quarter. For the full year the increase was slightly higher. Clear improvements within project execution and increased productivity resulted in an improved operating margin. In the Energy Division signs were noted of an increased activity in the market following a higher oil price and the order intake grew for the full year. Sequentially it increased by 11 percent, supported by large orders.

Most of the Group’s restructuring programme, decided in the autumn 2016, was implemented during 2017. Fully according to plan, important parts of the consolidation of the Group’s production sites are, however, remaining. The costs for the implementation of the programme will burden the result during 2018 with about SEK 150 million. The estimated saving is expected to gradually impact the gross margin positively, with full effect from early 2019.”

Tom Erixon, President and CEO

Summary: Fourth quarter

Order intake increased by 16 percent* to SEK 9,780 (8,709) million.
Net sales increased by 5 percent* to SEK 10,112 (9,904) million.
Adjusted EBITA**: SEK 1,611 (1,488) million.
Adjusted EBITA margin**: 15.9 (15.0) percent.
Result after financial items: SEK 1 358 (877) million.
Net income: SEK 1 061 (616) million.
Earnings per share: SEK 2.52 (1.46). 
Cash flow from operating activites:
SEK  1,573  (1,925) million.
Impact on adjusted EBITA of foreign exchange effects: SEK 33 (141) million.
Impact on result after financial items of comparison distortion items: SEK - (-400) million.

Summary: Full year 2017

Order intake increased by 13 percent* to SEK 36,628 (32,060) million.
Net sales decreased by 2 percent* to SEK 35,314 (35,634) million.
Adjusted EBITA**: SEK 5,610 (5,553) million.
Adjusted EBITA margin**: 15.9 (15.6) percent.
Result after financial items: SEK 4,371 (3,325) million.
Net income: SEK 2,988 (2,312) million.                                          
Earnings per share: SEK 7.09 (5.46). 
Cash flow from operating activities:
SEK 4,463 (4,979) million
Impact on adjusted EBITA of foreign exchange effects: SEK 223 (478) million
Impact on result after financial items of comparison distortion items: SEK - (-1,500) million

* Excluding currency effects. ** Alternative performance measures, see page 23.

Outlook for the first quarter
“We expect that demand during the first quarter 2018 will be somewhat lower than in the fourth quarter.”
Earlier published outlook (October 25, 2017): “We expect that demand during the fourth quarter 2017 will be 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 2017 report has been reviewed by the company’s auditors, see page 24 for the review report.

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

Gabriella Grotte, Investor Relations Manager
Phone: +46 46 36 74 82
Mobile: +46 709 78 74 82

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 30, 2018.



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