STOCKHOLM, Sweden, Oct. 21, 2004 (PRIMEZONE) -- "During the third quarter 2004 the order intake increased by 15 percent, excluding exchange rate variations, compared to the same period 2003, which means that it was the fourth consecutive quarter for Alfa Laval with a strong increase.
"The EBITA-margin in the third quarter was 11.1 percent. The margin has been negatively affected mainly by exchange rate variations and a high portion of capital sales. The EBITA-margin has been improved excluding exchange rate variations compared with last year. During the third quarter we have in addition seen the beginning of an improvement of the price level.
"During the third quarter it was encouraging to note the positive development of order intake in both Germany and Italy."
Lars Renstrom, President and CEO, Alfa Laval
Summary of the third quarter 2004:
- Order intake increased to SEK 3,866 (3,463) million, meaning an increase by 14.8 percent excluding exchange rate variations.
- Net sales increased to SEK 3,838 (3,426) million, meaning an increase by 15.3 percent excluding exchange rate variations.
- Adjusted EBITA was SEK 426 (430) million, including adverse foreign exchange effects of SEK 81 million.
- Adjusted EBITA-margin was 11.1 percent (12.6).
- Result after financial items increased to SEK 297 (191) million.
- Cash flow from operating activities was SEK 297 (374) million. Summary of the first nine months 2004:
- Order intake increased to SEK 11,969 (10,395) million, meaning an increase by 19.2 percent excluding exchange rate variations.
- Net sales increased to SEK 10,820 (9,823) million, meaning an increase by 14.3 percent excluding exchange rate variations.
- Adjusted EBITA increased to SEK 1,229 (1,164) million, including adverse foreign exchange effects of SEK 224 million.
- Adjusted EBITA-margin was 11.4 percent (11.8).
- Result after financial items increased to SEK 767 (542) million.
- Result after tax increased to SEK 440 (413) million.
- Earnings per share increased to SEK 3.94 (3.70).
- Cash flow from operating activities was SEK 816 (1,024) million.
Outlook for the fourth quarter 2004
During the fourth quarter 2004 we expect an order intake on the same high level as during the same period 2003.
In comparison with 2003, the EBITA-margin will continue to be strongly affected by exchange rate variations and the large portion of capital sales, meaning that we expect EBITA to be on the same level as the fourth quarter 2003 in absolute terms.
Earlier published outlook (August 16, 2004): The continued recovery in the market that Alfa Laval predicted in the Year End Report in February 2004 has been fulfilled during the first six months. Based on the outcome for the first half of 2004 we believe in a very strong increase in orders received during the full year 2004.
We assess that the EBITA-margin, excluding currency effects, will be improved.
Alfa Laval's former CEO and President Sigge Haraldsson retired on September 30 and the new CEO and President Lars Renstrom took up his duties as of October 1.
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Interim Report July 1 - September 30, 2004