Comment from Tom Erixon, President and CEO : “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.”
Source : Press Release Alfa Laval AB Lund, Sweden, 30 January 2018
29-1 Vooruitlopend op de publicatie van de jaarcijfers op 30 januari is het aandeel wederom met verlies gesloten. Vandaag sluit de koers 2.5% lager op 201 SEK. De koers beweegt zich richting onderkant van het oplopende trendkanaal en de mediaan van 192.20 SEK. De mediaan markeert de toppen formatie halverwege juli 2017 en de bodems van 15 dec 2017 en 2 jan 2018.
Comment from Tom Erixon, President and CEO : “The order intake in the third quarter increased by 15 percent compared to the same quarter last year. The development was particularly strong in the Marine Division, primarily driven by a good order intake for environmental applications and an improved contracting for tankers at the ship yards. Geographically, the most positive development was seen in Asia and North America. Compared to the previous quarter, the order intake decreased as expected, mainly due to fewer bookings of large orders, fewer projects within Food & Water and a normal seasonality for HVAC applications.
The adjusted EBITA margin improved in the quarter and amounted to 16 percent. The impact from the lower invoicing in the Marine Division was compensated by clear margin reinforcements in the Energy Division and the Food & Water Division. The unit called Greenhouse was affected by a factory closing in the U.S. Excluding these one-time costs the result in Greenhouse was stable compared to the previous quarter.
The change programme had a continued positive effect in the quarter. The part that relates to changes in the manufacturing structure continued according to plan.
Operations had a good productivity development in the quarter. Previous capacity adaptations, combined with an increased production pace impacted the gross margin positively. Selective investments to increase the production capacity are carried through in light of the increased order intake that has been seen during the year.”
Source : Q3 Quarterly Report Alfa Laval AB, 25 October 2017
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 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.”
Source : Press Release Alfa Laval AB 26 April 2017
The operating income has been adjusted for non-recurring costs for a total of 1.500 million SEK. This concerns :
The effective tax has been affected by the write down of goodwill of SEK -533 million (and of SEK 132 million for non-recurring items). Net income has been adjusted for both these amounts.
Comment from Tom Erixon, President and CEO : “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.
We expect that demand during the first quarter 2017 will be somewhat lower than in the fourth quarter.”
Source : Press Release Alfa Laval AB 31 January 2017