Alfa Laval AB (publ) Fourth quarter and full year 2010

Alfa Laval AB (publ) Fourth quarter and full year 2010

“It was the best demand since the third quarter 2008. Order intake
increased with 18 percent to SEK 6.4 billion. Most business segments and
regions reported growth. Food and Sanitary did especially well,
benefitting from a good activity level for the food and pharmaceutical
industries in the world's emerging regions. Geographically, Central and
Eastern Europe and North America reported the strongest development.
India also developed very positively and in the quarter the country grew
to become Alfa Laval's third largest market after the US and China.
Sales increased to SEK 7.2 billion at the same time as the operating
result of SEK 1.3 billion was the best in two years. The operating
margin was 18.6 percent.
During the quarter agreements were made and acquisitions were closed
that together add SEK 4.2 billion in sales, corresponding to 17 percent
of the Group's sales. Aalborg Industries was the largest; an acquisition
that will strengthen Alfa Laval's position within heat transfer for the
marine as well as the oil & gas industries and add SEK 3.3 billion on a
full year basis.
In order to better reflect the opportunities we see long term in our
surrounding world Alfa Laval's growth target is adjusted upwards. The
new target means that the company's sales should reach an average growth
of at least 8 percent annually over a business cycle.”
Lars Renström, President and CEO

Summary: fourth quarter
Order intake increased by 23 percent * to SEK 6,379 (5,427) million.
Net sales increased by 14 percent * to SEK 7,169 (6,556) million. 
Adjusted EBITA was SEK 1,337 (1,153) million.
Adjusted EBITA-margin was 18.6 (17.6) percent.
Result after financial items was SEK 1,273 (899) million.
Net income was SEK 905 (632)
million.                                        
Earnings per share was SEK 2.14 (1.48).
Cash flow from operating activities was SEK 1,081 (1,566) million.
Impact on EBITA of foreign exchange effects: SEK 32 (-140) million.
Summary: full year 2010
Order intake increased by 16 percent * to SEK 23,869 (21,539) million.
Net sales decreased by 1 percent * to SEK 24,720 (26,039) million. 
Adjusted EBITA was SEK 4,682 (4,585) million.
Adjusted EBITA-margin was 18.9 (17.6) percent.
Result after financial items was SEK 4,364 (3,760) million.
Net income was SEK 3,116 (2,737)
million.                                        
Earnings per share was SEK 7.34 (6.42).
Cash flow from operating activities was SEK 4,098 (5,347) million.
Impact on EBITA of foreign exchange effects: SEK 356 (166) million.
* excluding exchange rate variations
The Board of Directors will propose a dividend of SEK 3.00 (2.50) per
share and a mandate for repurchase of up to 5 percent of the issued
shares to the Annual General Meeting.
Outlook for the first quarter
“We expect demand during the first quarter 2011 to be on about the same
level as during the fourth quarter 2010.”
Earlier published outlook (October 22, 2010): “We expect demand during
the fourth quarter to be on about the same level as during the third
quarter.”
The fourth quarter and full year 2010 report has been reviewed by the
company's auditors, see page 23 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
peter.torstensson@alfalaval.com
Gabriella Grotte, Investor Relations Manager
Phone: +46 46 36 74 82
Mobile: +46 709 78 74 82
gabriella.grotte@alfalaval.com
Alfa Laval AB (publ)
PO Box 73
SE-221 00 Lund
Sweden
Corporate registration number: 556587-8054
Alfa Laval AB (publ) discloses the information provided herin pursuant
to the Securities Markets Act and/or the Financial Instruments Trading
Act. The information was submitted for publication at 07.30 a.m. on
February 8, 2011.