Alfa Laval AB (OMX: ALFA) published its Q1 2012 interim report this afternoon. Net sales were up to 6.8 billion SEK (+16%) but adjusted EBITA came down be a percent to print below 1.3 billion as margins slid by almost 3%. Net income of 735 million means EPS of 1.74 where as operating cash flow was strongly positive. Order intake of 7.9 billion is an increase of 22%.
Demand was particularly strong in the oil & gas industry and power generation. The company is happy about the development in Central and Eastern Europe and North America. The margin fall is explained by lower capacity utilization and sales overhead costs from developing countries. The guidance isn’t terribly strong as the company expects Q2 2012 demand to be at about on par with Q1 excluding large orders.
Annual general meeting was held today and a dividend of 3.25 SEK plus a mandate for repurchase of shares were on the agenda. Even though sales and orders received were strong than expected, investors weren’t happy about the margin development, which coupled with an already weak market resulted in a slump of almost 7% as the share closed below 134 SEK.
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