Worse than expected for Alfa Laval – Private Businesses

Analysts had on average predicting an adjusted EBITA of 1.391 billion SEK and an EBITA margin of 16.5 percent.

Sales amounted to 8.199 billion SEK for the period. Here lay SME Direkt consensus forecast of 8.438 billion kronor.

The order intake amounted to 7.71 billion kronor. For orders received low SME expectations of 7.868 billion kronor.

The operating profit of Alfa Laval’s Process Technology Division was 18 percent lower than the SME expectations, 274 to SEK 333 million (410).

the company writes that the decrease compared to the same period in 2015 due to lower sales volumes and lower margins. The decrease in margin is explained in turn by the “negative price / mix, a lower outcome for some factories and engineering operations.”

In order level deviation was most negative in Marine & amp; Diesel: 9 percent lower than expectations (2412 against the expected 2.655 billion SEK), and an organic decline of entire 38.5 percent compared with last year’s 4.008 billion SEK.

There was lower demand for pump systems, the main explanatory factor, according to Alfa Laval, which mentions several other factors, such as lower demand for environmental solutions.

the new CEO Tom Erixon says he has taken the initiative to launch a strategic review as a natural part of it been a change in the CEO post and that there are some markets that show different conditions than before.

With regard to price / mix expects Alfa Laval has a negative effect in the second quarter sequentially seen and negatives coating effect while currency and metal prices will provide some compensation in the second quarter, according to CFO Thomas Thuresson.

There are conditions for invoicing, sales will be slightly higher in the second quarter compared with the first informed the CFO on.

Alfa Laval expects further foreign exchange effects of SEK +350 million this year, a repeat of the financial statements. For 2017 the corresponding figure is +50 million.