Alfa Laval AB, Sweden

COMPANY WATCH

Andritz Group, Austria

Alfa Laval AB, Sweden Key Figures (SEK million) Third quarter ended 30.9 2012

2011

Order Intake

7288

8018

Net Sales

7052

7571

Cost of Goods Sold

4567

4799

Gross Profit

2485

2772

160

158

1055

1307

849

780

R&D Costs Operating Income Net Income

Nine months ended 30.9 2012

2011

Order Intake

23 087

21 897

Net Sales

21 694

20 503

Cost of Goods Sold

13 933

12 652

7761

7851

498

473

Gross Profit R&D Costs Operating Income

3231

3503

Net Income

2305

2317

Key Figures (E million) Third quarter ended 30.9 2012

2011

Order Intake Of Which: Separation

1238.8

1254.1

106.5

115.0

Sales Of Which: Separation

1265.5

1173.1

104.2

117.3

EBITA Of Which: Separation

86.5

89.8

6.0

12.3

Earnings before Interest and Taxes

81.2

88.0

Net Income

58.7

62.1

Nine months ended 30.9 2012

2011

Order Intake Of Which: Separation

3793.2

4898.6

365.9

352.0

Sales Of Which: Separation

3703.3

3184.2

304.7

296.4

EBITA Of Which: Separation

242.1

221.4

17.3

24.9

Earnings before Interest and Taxes

224.0

207.9

Net Income

166.2

151.8

COMMENT Swedish engineering group Alfa Laval has posted third quarter fiscal 2012 sales of SEK7052 million, down 6.9% on the year earlier. Order intake also fell, decreasing 9.1% to SEK7288 million, while net income bucked the trend to finish 8.8% stronger at SEK849 million. Lars Renström, Alfa Laval’s president and CEO, said order intake during the quarter had been below expectations, but added that the company had strengthened its position within municipal and industrial wastewater treatment during the period. He said this had come through the opening of a new factory for manufacturing decanters in China and the acquisition of belt filter press maker Ashbrook

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Filtration Industry Analyst

Simon-Hartley of Houston, Texas, USA, which would complement and provide an alternative to its decanter range. Performance for the corresponding nine-month period was more encouraging with Alfa Laval reporting a 5.4% year-on-year increase in new orders to SEK23.1 billion and a 5.8% lift in net sales to SEK21 694 million, although net income was down marginally at SEK2305 million. Looking forward, Renström expects similar results in the final quarter of the year. “We expect that demand during the fourth quarter 2012 will be in line with or somewhat lower than in the third quarter,” he said. ■ www.alfalaval.com

COMMENT Andritz has posted third quarter fiscal 2012 sales of E1265.5 million, an increase of 7.9% on a year earlier, although net income was 5.5% lower at E58.7 million. Sales were up in all business areas except Separation, where revenues fell 11.2% to E104.2 million. Order intake and EBITA for the division were also down, the former falling 7.4% to E106.5 million and the latter 51.2% lower at E6.0 million. Despite the downturn in the third quarter, Andritz remained positive about the performance of the Separation segment noting that for the corresponding ninemonth period order intake and sales were both up on the year

earlier. Revenues for the first three periods were up 2.8% at E304.7 million and order intake increased 3.9% to E365.9 million, although EBITA fell 30.5% to E17.3 million. The company said market conditions generally remained good for the Separation division. There continued to be solid investment in water treatment applications, particularly in Asia, while food and chemical project activity was also generally good. Business was also satisfactory with regards to the mining and minerals sector, although Andritz noted that there continued to be uncertainty with regards to large projects. ■ www.andritz.com

November 2012