Key Figures (SEK million) Third quarter ended 30.9 2016 2015
Key Figures (US$ million) Three months ended 30.6 2016
2015
112.3
87.0
Order Intake
7540
8686
Net Sales
Net Sales Of Which: Equipment Process Technology Marine & Diesel
8581
9693
Cost of Sales
78.3
60.3
Gross Profit
33.9
26.6
Selling and Admin Expenses
20.1
14.4
Acquisition and Integration Expenses
0.3
1.0
Cost of Goods Sold
6336
6558
Income from Operations
8.6
4.5
Gross Profit
2245
3135
Net Income
4.0
2.1
Sales Costs
1138
1095
Administration Costs
327
336
R&D Costs
191
180
Six months ended 30.6 2016
2015
Operating Income/(Loss)
(32)
1402
Net Sales
215.4
167.9
(106)
988
Cost of Sales
149.9
120.3
Gross Profit
65.5
47.6
Selling and Admin Expenses
41.1
28.1
0.4
1.3
14.4
7.5
7.1
2.3
Net Income/(Loss)
2737 2671 2972 3467 2872 3555
Six months ended 30.9 2016 2015
Acquisition and Integration Expenses
Order Intake
23 351
27 676
Income from Operations
Net Sales Of Which: Equipment Process Technology Marine & Diesel
25 730
28 941
Net Income
Cost of Goods Sold
17 733
19 330
Gross Profit
7997
9611
Sales Costs
3386
3282
Administration Costs
1056
1097
590
556
Operating Income
2169
4234
Net Income
1696
2926
R&D Costs
7658 7806 2972 3467 9044 10 725
COMMENT Alfa Laval AB’s third quarter fiscal 2016 net sales fell 11% yearon-year to SEK8581 million, while order intake dropped 13% to SEK7540 million. The company delivered a net loss of SEK106 million, compared with a net income of SEK988 million last year. “Order intake for the third quarter was sequentially somewhat weaker,” said Tom Erixon, Alfa Laval’s president and CEO. “The development originated from a low activity
October 2016
level within the marine sector and generally longer decision processes for larger investment projects among our customers. We estimate that the demand during the fourth quarter will be unchanged to somewhat higher.” In a move designed to secure its profitability and strengthen its competiveness, Alfa Laval has announced a restructuring programme following a strategic review (see front page). n www.alfalaval.com
COMMENT Ceco Environmental Corp’s financial highlights for the second quarter of 2016 included a 29% increase in revenue to a record US$112.3 million, a 27% lift in gross profit to US$33.9 million, and operating income up 91% to a record US$8.6 million. Net income was US$4.0 million for the second quarter of 2016, compared with US$2.1 million in the prior-year period. Second quarter bookings rose 46% to US$108.8 million, while backlog at 30 June 2016 was up 60% to US$224.7 million. “I am encouraged with our operational progress, especially our bookings of US$108.8 million in the quarter and
US$228.9 million year-todate, representing organic bookings growth of 16.0% and 4.5%, respectively,” said Ceco’s CEO Jeff Lang. “We have fully completed the integration of our Peerless acquisition and have exceeded the promised operational and overall business synergies, more than one year ahead of schedule, with US$18.0 million in total operating costout synergies. In addition, our continued focus on organic sales, recurring revenue growth, and working capital initiatives enabled debt repayment and a reduction in our leverage ratios.” n www.cecoenviro.com