report for q1 2009 - alfa laval · 1 125 1 350 1 575 1 800 0,0 3,0 6,0 9,0 12,0 15,0 18,0 21,0 24,0...

Report for Q1 2009Report for Q1 2009

Mr. Lars RenstrMr. Lars Renströömm

President and CEOPresident and CEO

Alfa Laval GroupAlfa Laval Group

-- Orders received and marginsOrders received and margins

-- HighlightsHighlights

-- Development per segmentDevelopment per segment

-- Geographical developmentGeographical development

-- Financials Financials

-- OutlookOutlook

© Alfa Laval Slide 3 www.alfalaval.com

Key figuresKey figures

�� Orders received dropped 31.6% to SEK 5,853 million.Orders received dropped 31.6% to SEK 5,853 million.

�� Net sales down 4.8% at SEK 6,923 million.Net sales down 4.8% at SEK 6,923 million.

�� Adjusted EBITA down 11% at SEK 1,255 million. Adjusted EBITA down 11% at SEK 1,255 million.

-- Positive currency effect SEK 124 million.Positive currency effect SEK 124 million.

January January –– March 2009March 2009


0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

0

4 000

8 000

12 000

16 000

20 000

24 000

28 000

32 000

SEK millionSEK million

Orders receivedOrders received

SEK million R 12SEK million R 12

= rolling twelve months value= rolling twelve months value

= order intake per quarter= order intake per quarter

Q1

09

Q1

09

Q1

06

Q1

06

Q2

06

Q2

06

Q3

06

Q3

06

Q4

06

Q4

06

Q1

07

Q1

07

Q2

07

Q2

07

Q3

07

Q3

07

Q4

07

Q4

07

Q1

08

Q1

08

Q2

08

Q2

08

+28

%+

28

%

+35

%+

35

%

+17

%+

17

%

+40

%+

40

%

+36

%+

36

%

+13

%+

13

%

+30

%+

30

%

0%

0%

+9

%+

9%

+8

%+

8%

= % development at constant rates by = % development at constant rates by

quarter, year on yearquarter, year on year

++xx%xx%

-- 3%

3%

Q3

08

Q3

08

Q4

08

Q4

08

-- 15

%15

%

-- 32

%32

%


Order analysisOrder analysis

2008 2008 (SEK millions)(SEK millions)

Structural change, %Structural change, %

Currency effects,%Currency effects,%

Organic development, %Organic development, %

Total, %Total, %

2009 2009 (SEK million)(SEK million)

7,4337,433

January January –– March 2009March 2009

5,8535,853

+ 2.2 + 2.2

+10.3 +10.3

--33.833.8

-- 21.3 21.3


Organic development

4 000

5 000

6 000

7 000%%

Q1 08Q1 08 Q1 09Q1 09

-- 1.2%1.2%

-- 9%9%

-- 23.6%23.6%

MarineMarine

cancellationscancellationsMarineMarine

ordersorders

--64%64% OrdersOrders

otherother

segmentssegments

--27%27%


0

225

450

675

900

1 125

1 350

1 575

1 800

0,0

3,0

6,0

9,0

12,0

15,0

18,0

21,0

24,0

SEK millions and in percent of salesSEK millions and in percent of sales

* Adjusted EBITA * Adjusted EBITA –– ””Earnings before interests, taxes, amortization of goodwill and sEarnings before interests, taxes, amortization of goodwill and step up values and comparison distortion items.tep up values and comparison distortion items.””

Adjusted EBITA / margin *Adjusted EBITA / margin *

Q108Q108 Q109Q109Q106Q106 Q206Q206 Q306Q306 Q406Q406 Q107Q107 Q207Q207 Q307Q307 Q407Q407 Q208Q208 Q308Q308 Q408Q408









-- OutlookOutlook

Interim Report Q1 2009Interim Report Q1 2009


Highlights during the quarterHighlights during the quarter

�� Heat exchanger order from Russian power plant. Heat exchanger order from Russian power plant.

Order value SEK 75 million. Delivery in 2010.Order value SEK 75 million. Delivery in 2010.

Large orders, total SEK 140 million (390) Large orders, total SEK 140 million (390)



�� Heat exchanger order from Russian power plant.Heat exchanger order from Russian power plant.

�� Heat exchanger order from Indian aluminum industry.Heat exchanger order from Indian aluminum industry.

Order value SEK 65 millionOrder value SEK 65 million. . Final delivery in 2010Final delivery in 2010..

Large orders, total SEK 140 million (390) Large orders, total SEK 140 million (390)



AcquisitionsAcquisitions

�� Two acquisitions expand aftermarket business.Two acquisitions expand aftermarket business.

Both companies are major providers of parts and service for a vaBoth companies are major providers of parts and service for a variety of riety of

products, applications and geographical areas. Combined sales ofproducts, applications and geographical areas. Combined sales of about about

SEK 300 million in 2008. SEK 300 million in 2008.





�� OnnuriOnnuri -- South Korean systemSouth Korean system--builder.builder.

OnnuriOnnuri is a systemis a system--provider to the shipbuilding and diesel power provider to the shipbuilding and diesel power

markets. The company had sales of about SEK 150 million in 2008.markets. The company had sales of about SEK 150 million in 2008.






�� HES HES GmbH Heat GmbH Heat ExchangerExchanger Systems. Systems.

German provider of spiral heat exchangers, mainly to the processGerman provider of spiral heat exchangers, mainly to the process

industry. Sales of about SEK 85 million in 2008. industry. Sales of about SEK 85 million in 2008.






�� HES HES GmbH Heat GmbH Heat ExchangerExchanger Systems.Systems.

�� TwoTwo acquisitionsacquisitions extend Tranterextend Tranter’’s presence. s presence.

Local companies in Poland and Mexico with combined sales of abouLocal companies in Poland and Mexico with combined sales of about t

SEK 50 million expand TranterSEK 50 million expand Tranter’’s presence in sales and service.s presence in sales and service.






�� HES HES GmbH Heat GmbH Heat ExchangerExchanger Systems.Systems.

�� TwoTwo acquisitionsacquisitions extend Tranterextend Tranter’’s presence. s presence.

�� ApproximatelyApproximately 12 12 percentpercent of Alfa Laval of Alfa Laval IndiaIndia Ltd.Ltd.

Alfa Laval AB increased its share in the Indian company to aboutAlfa Laval AB increased its share in the Indian company to about 89 89

percent. percent.









-- OutlookOutlook



Orders received by customer segmentOrders received by customer segment

Comfort & Comfort &

RefrigerationRefrigeration

SanitarySanitary

Marine & DieselMarine & Diesel

Fluids & UtilityFluids & Utility

OEMOEM

Life ScienceLife Science

Process IndustryProcess Industry

Energy & EnvironmentEnergy & Environment

FoodFood

January January –– March 2009, March 2009, at constant ratesat constant rates

Parts & ServiceParts & Service−−−−

−−−−

−−−−

−−−−

−−−−

−−−−

−−−−

−−−−

−−−−

−−−−



Life ScienceLife Science

Process IndustryProcess Industry

Energy & EnvironmentEnergy & Environment

FoodFood

Process Technology Division January Process Technology Division January –– March 2009, March 2009, at constant ratesat constant rates

−−−−

−−−−

−−−−

−−−−

�� Environment reported Environment reported

growth.growth.

�� Lower project activityLower project activity

affected Food and affected Food and

Process Industry.Process Industry.



Comfort & Comfort &

RefrigerationRefrigeration

SanitarySanitary

Marine & DieselMarine & Diesel

Fluids & UtilityFluids & Utility

OEMOEM

Equipment Division, January Equipment Division, January –– March 2009, March 2009, at constant ratesat constant rates

−−−−

−−−−

−−−−

−−−−

−−−−

� Largest drop in Marine due

to continued decline in

market activity.

� Good level of activity in

market for diesel power.


Growth in capital salesGrowth in capital salesrepresents opportunities for Parts & Servicerepresents opportunities for Parts & Service

Growth in capital sales (fixed rates)Growth in capital sales (fixed rates)

Q404Q404 Q205Q205 Q405Q405 Q206Q206 Q406Q406 Q207Q207Q403Q403 Q204Q204 Q407Q407 Q208Q208 Q408Q408

�� SalesSales growthgrowth

Alfa Laval +90%Alfa Laval +90%

�� Sales growth Sales growth

aftermarketaftermarket--

intensive areas: intensive areas:

+166%+166%

00

2525

5050

7575

100100

125125

150150

175175









-- OutlookOutlook



Orders received by RegionOrders received by Region

Centr

Centr. &

East 8 %

. & E

ast 8 %

North

Am

erica

17 %

North

Am

erica

17 %

Asia 31 %Asia 31 %

L. A

merica 5

%

L. A

merica 5

%

Other 2 %

Other 2 %

Western Europe 27 %

Western Europe 27 %

Nord

ic 1

0 %

Nord

ic 1

0 %


--2929-2222--2222

--1616

--4545

--4242


North America North America

�� Unchanged order intake for Equipment, Unchanged order intake for Equipment,

Process Technology orders very weak.Process Technology orders very weak.

Latin America Latin America

�� Major decline in the region due to Major decline in the region due to

lower order intake in Brazil.lower order intake in Brazil.

�� Refinery did well in Chile, Mexico and Refinery did well in Chile, Mexico and

Ecuador.Ecuador.

Highlights AmericasHighlights AmericasJanuary January –– March 2009, March 2009, at constant ratesat constant rates

--4242

--2222


Highlights EuropeHighlights Europe

Western Europe incl. NordicWestern Europe incl. Nordic

�� Negative development for all Negative development for all

segments except Energy & segments except Energy &

Environment.Environment.

�� Sequential decline of 10 percent.Sequential decline of 10 percent.

Central and Eastern Europe Central and Eastern Europe

�� Overall weak development in most Overall weak development in most

markets.markets.


--2929

--1616

--2222


Highlights AsiaHighlights Asia

Asia Asia

�� General decline in most markets General decline in most markets --

India bucked the trend.India bucked the trend.

�� Sequential decline of 2 percent.Sequential decline of 2 percent.


--4545

Mr. Thomas ThuressonMr. Thomas Thuresson

CFOCFO







-- OutlookOutlook



HighlightsHighlights

Order intake Order intake

Net salesNet sales

5,8535,853

6,9236,923

SEK millionsSEK millions Jan Jan –– MarchMarch 20092009


Gross profit marginGross profit margin

20

30

40

50In percent of salesIn percent of sales

38.538.5

42.942.9

38.938.9

Q109Q109Q106Q106

38.938.9

Q206Q206 Q306Q306 Q406Q406 Q107Q107 Q207Q207 Q307Q307 Q407Q407 Q108Q108 Q208Q208 Q308Q308 Q408Q408




Net salesNet sales

Adjusted EBITAAdjusted EBITA

Adjusted EBITAAdjusted EBITA--marginmargin

Profit before taxProfit before tax

SEK millionsSEK millions Jan Jan –– MarchMarch 20092009

5,8535,853

6,9236,923

1,2551,255

18.1%18.1%

1,1141,114


Status report on JanuaryStatus report on January’’s works work--

force reduction programforce reduction program

• Program running as planned. Year on year reduction in S&A and R&D of 7% and 5% respectively.

• 323 had left the company by end of March.

• In addition work sharing utilized in the Netherlands and Italy and a number of contract labor has been reduced, particularly in India.

• Total cost for program SEK 270 million, charged to the 4Q 2008.


Earnings per shareEarnings per share

EarningsEarnings

Earnings, excluding stepEarnings, excluding step--upup

20092009

1.801.80

1.931.93

20082008

2.062.06

2.192.19

Jan Jan –– March March




Net salesNet sales

Adjusted EBITAAdjusted EBITA

Adjusted EBITAAdjusted EBITA--marginmargin

Profit before taxProfit before tax

Cash flow from operating activitiesCash flow from operating activities

ROCEROCE

ROEROE

SEK millionsSEK millions January January –– March 2009March 2009

5,8535,853

6,9236,923

1,2551,255

18.1% 18.1%

1,1141,114

1,0581,058

64.3%64.3%

50.3%50.3%


Cash flow fromCash flow from

-- operating activitiesoperating activities

-- investing activitiesinvesting activities

Financial Financial net paidnet paid

TotalTotal

CashCash--flow statement flow statement

Pro Forma FreePro Forma Free--cashcash--flow*flow*

**Incl. operating activities, capital expenditure and financial neIncl. operating activities, capital expenditure and financial net paid. t paid.

SEK millionsSEK millionsQ1Q1

20092009Q1Q1

20082008

10581058

-- 12051205

--133133

--280280

835835

729729

--134134

1616

611611

651651


Foreign exchangeForeign exchange

SEK millionSEK million

Translation effectTranslation effect

Transaction effectTransaction effect

TotalTotal

*Based on EUR/USD 1. 32 and EUR/SEK 10.80*Based on EUR/USD 1. 32 and EUR/SEK 10.80

Estimated impact on adjusted EBITA from Estimated impact on adjusted EBITA from FxFx. fluctuations. fluctuations

Q1 09Q1 09

145145

-- 2121

124124

WY 10*WY 10*

00

500 500

500500

WY 09WY 09

465465

1010

475475


Order backlog as per March 31

SEK millionsSEK millions

For delivery during rest of current yearFor delivery during rest of current year

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

5,2465,246

10,168

15,41415,414

5,7255,725

9,818

15,54315,543

5,0515,051

8,780

13,83113,831

For delivery next year or laterFor delivery next year or later

2009200920072007 20082008




-- Orders received and operating margin Orders received and operating margin





-- OutlookOutlook



Outlook for the second quarterOutlook for the second quarter

““We expect demand during the We expect demand during the

second quarter to be in line with, second quarter to be in line with,

or somewhat lower than, the first or somewhat lower than, the first

quarter 2009.quarter 2009.””

report for q1 2009 - alfa laval · 1 125 1 350 1 575 1 800 0,0 3,0 6,0 9,0 12,0 15,0 18,0 21,0 24,0...

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