Alfa Laval AB, Sweden

COMPANY WATCH

Alfa Laval AB, Sweden

Curtiss-Wright Corp, USA

Key Figures (SEK million) Fourth quarter ended 31.12 2012

2011

Key Figures (US$ million) Three months ended 31.12 2012

2011

Order Intake

7252

6774

590.4

550.5

Net Sales

8119

8149

Cost of Goods Sold

5236

5177

Gross Profit

2883

2972

209

175

1141

1188

902

934

R&D Costs Operating Income Net Income

Net Sales Of Which: Flow Control

317.2

289.8

Operating Income Of Which: Flow Control

62.0

56.2

40.4

33.4

Net Earnings

38.5

38.2

2012

2011

2097.7

2016.7

1095.3

1060.8

Operating Income Of Which: Flow Control

161.4

186.9

78.8

103.4

Net Earnings

113.8

126.4

Year ended 31.12 Year ended 31.12 2012

2011

Order Intake

30 339

28 861

Net Sales

29 813

28 652

Cost of Goods Sold

19 169

17 829

Gross Profit

10 644

10 823

R&D Costs

707

648

Operating Income

4372

4691

Net Income

3207

3251

Net Sales Of Which: Flow Control

COMMENT COMMENT Swedish engineering group Alfa Laval has posted fourth quarter fiscal 2012 sales of SEK8119 million, down marginally on the year earlier. Net income also fell, dropping 3.4% to SEK902 million, although order intake increased 7.1% to SEK7252 million. Lars Renström, Alfa Laval’s president and CEO, said demand in the company’s Process Technology division remained at a similar level to the third quarter, with progress particularly pleasing within its Process Industry and Food Technology business units. He said the Equipment division also had a good quarter with unchanged order intake. In contrast, Renström said the Marine & Diesel division

February 2013

saw sales decline, with growth in its after sales business unable to compensate for lower capital sales. In terms of geography, Alfa Laval saw good growth in Western Europe, including the Nordic countries. Order intake was generally good in Asia, although subdued in China. Significant orders for the quarter included Alfa Laval’s first commercial order from MAN Diesel & Turbo for the supply of its PureNOx water treatment systems. “We expect that demand during the first quarter 2013 will be on about the same level as in the fourth quarter,” Renström added. ■ www.alfalaval.com

Curtiss-Wright Corp’s fourth quarter 2012 sales of US$590 million were up US$40 million, or 7%, on a year earlier. Sales increased in all three segments, with a 9% gain in Flow Control. The US$27 million increase in Flow Control’s fourth quarter sales to US$317 million reflects acquisitions as well as strength in a number of commercial markets. Within the power generation market, Flow Control’s sales rose 47% due to strong aftermarket sales supporting existing nuclear reactors and higher revenues from the China and US AP1000 programs. Sales to the oil & gas market increased slightly in the fourth quarter, as higher MRO and petrochemical sales, along with the benefit from the recent acquisition of Cimarron Energy, offset continued softness in the international large projects business. Elsewhere, general industrial

sales were 18% lower in the quarter, mainly due to slower orders from global commercial heating, ventilation, and air conditioning customers due to slowing economic conditions. The 10% increase in Curtiss-Wright’s fourth quarter operating income to US$62 million was mainly driven by a strong 21% improvement in the Flow Control segment, based on the solid performance in the power generation market, due to improved profitability on the company’s AP1000 technology transfer contract in China. “While 2012 was a challenging year for Curtiss-Wright, we continue to transform the business for long-term, profitable growth and remain focused on generating shareholder value with an optimistic outlook heading into 2013,” said Martin Benante, chairman and CEO of Curtiss-Wright. ■ www.curtisswright.com

Pump Industry Analyst

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