Engineering company Alfa Laval (OMX: ALFA) came out with interim numbers for Q2 2012 before market open. The heat exchangers, centrifugal separators, boilers, pumps and valves maker reported increased sales of 7.8 billion but with operating margin down to 16.5% from 19%, operating result of 1.3 billion SEK was slightly lower than in the same period last year. The company attributed this to product mix issues and lower capacity utilization on certain factories. Order intake remained strong with 7.9 billion booked during the quarter.
Process industry demand remained strong while Equipment division had a seasonal demand hike in the end of the quarter. Marine & Diesel division demand comes from aftermarket and land based diesel power stations but depressed demand in shipbuilding means overall activity level is still down somewhat. There was growth across Europe behind a few large orders where as Asia and North America slowed down. The company expects Q3 demand to remain level with the second quarter.
Showing posts with label ALFA. Show all posts
Showing posts with label ALFA. Show all posts
Tuesday, 17 July 2012
Monday, 23 April 2012
Alfa Laval's margins also under pressure
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.
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.
Wednesday, 8 February 2012
Slower order intake sinks Alfa Laval
Alfa Laval’s (OMX: ALFA) Q4 sales grew be a healthy 14% to 8.1 billion SEK and since operating margin was 17%, operating profit was 1.4 billion. While the sales can be deemed quite satisfactory, lower margin and particularly 15% lower order intake when compared to Q3 caused a sell-of.
Lower demand from shipbuilding industry and longer decision times were the main causes behind the order decline. To be fair the orders were still up by 6% year-on-year at 6.77 billion. Measures to adapt to a lower production pace, higher share of project deliveries in investments in BRIC contributed to lower operating margin.
Full year numbers were an order intake of over 28.5 billion, net sales in the same region, net income of 3.25 billion and EPS of 7.68. The Board proposes a dividend of 3.25 SEK a share plus a mandate of share repurchases up to 5 percent of issued shares.
The company expects Q1 2012 demand to be in line or slightly higher than in Q4 2011. The fourth quarter and full year 2011 report has been reviewed by the company’s auditors, see page 24 for the review report. The stock retreated over 7% in today’s session. The stock has been on quite a run for the last four months so some selling on the news should also not come as a shock.
Lower demand from shipbuilding industry and longer decision times were the main causes behind the order decline. To be fair the orders were still up by 6% year-on-year at 6.77 billion. Measures to adapt to a lower production pace, higher share of project deliveries in investments in BRIC contributed to lower operating margin.
Full year numbers were an order intake of over 28.5 billion, net sales in the same region, net income of 3.25 billion and EPS of 7.68. The Board proposes a dividend of 3.25 SEK a share plus a mandate of share repurchases up to 5 percent of issued shares.
The company expects Q1 2012 demand to be in line or slightly higher than in Q4 2011. The fourth quarter and full year 2011 report has been reviewed by the company’s auditors, see page 24 for the review report. The stock retreated over 7% in today’s session. The stock has been on quite a run for the last four months so some selling on the news should also not come as a shock.
Wednesday, 11 January 2012
Leading truck manufacturer chooses Alfdex
Alfdex AB, a 50/50 joint venture of Alfa Laval AB(OMX: ALFA) and Concentric AB(STO:COIC) has signed an exclusive supplier agreement for Alfdex Oil Mist Separators with one the world’s largest heavy truck producers from Europe. The contract will last until 2017 and has an estimated value of at least 500 million Swedish Kronor. It covers manufacturing in the US, Europe and Japan and states that all trucks with engines made in-house will be equipped with Alfdex oil mist separator for active cleaning of crankcase gases.
Europe will soon follow the lead of North America, Japan & South Korea and starts limiting the oil content in crank case gases. Alfdex is the world leader in the area. Concentric AB, which was until a split last June the Hydraulics Division of Haldex AB, gained 3%. Alfa Laval, which is over 10 times bigger company on annual sales and even more so based on market cap , was unchanged for the day.
Europe will soon follow the lead of North America, Japan & South Korea and starts limiting the oil content in crank case gases. Alfdex is the world leader in the area. Concentric AB, which was until a split last June the Hydraulics Division of Haldex AB, gained 3%. Alfa Laval, which is over 10 times bigger company on annual sales and even more so based on market cap , was unchanged for the day.
Sunday, 11 December 2011
The investors are wondering who will control Alfa Laval
Two of the most affluent families in Sweden, the Rausings and Wallenbergs, have been acquiring shares in Alfa Laval (OMX: ALFA). Rausings are best known from liquid food packaging company Tetra Pak and renowned banking family Wallenberg boast Europe’s largest family-controlled business empire. At the height of its powers, Wallenberg family has been estimated to have controlled a third of Sweden’s GDP through its various holdings.
Alfa Laval was part of Tetra Pak group (the group subsequently became known as Tetra Laval) from 1991 to 2000 and Tetra Laval remained a financial investor after selling the majority to Industri Kapital (IK Investment Partners). Industri Kapital exited Alfa Laval in 2005. Ever since Tetra Laval’s ownership share in Alfa Laval has been relatively stable at somewhat under 20%.
After Wallenberg foundation owned Foundation Asset Management (FAM) flagged over 5% ownership in Alfa Laval this August, something changed. Suddenly Tetra Laval has started to buy more, and in a recent flagging already owned over 25% of the shares in Alfa Laval. FAM has also continued its purchases and in most recent update on November 30th held 6% of the shares.
Swedish press is calling the situation an ongoing power struggle. Some speculate Rausings would try to avoid a situation where Wallenberg's own more than 10% of shares, which would make the able to stop a potential takeover. Tetra Laval’s CEO Jörgen Haglind scoffs at such theories and says the reason behind more purchases is that the company views the new purchases as “sound and solid financial investments”. FAM’s comments mirrored those sentiments, saying that Alfa Laval is a well managed global company with attractive growth prospects. FAM is also planning to be a long-term investor and feels that Alfa Laval fits well in its portfolio of holdings.
Alfa Laval is active in heat transfer, separation and fluid handling technologies. The stock is very cyclical, yet it is up 30% since the beginning of October. In November the company announced a new organization consisting of three selling organizations in its capital markets day. This week Alfa Laval won an order worth 85 million SEK to supply engineering and equipment to Indonesia to an edible oil company.
Alfa Laval was part of Tetra Pak group (the group subsequently became known as Tetra Laval) from 1991 to 2000 and Tetra Laval remained a financial investor after selling the majority to Industri Kapital (IK Investment Partners). Industri Kapital exited Alfa Laval in 2005. Ever since Tetra Laval’s ownership share in Alfa Laval has been relatively stable at somewhat under 20%.
After Wallenberg foundation owned Foundation Asset Management (FAM) flagged over 5% ownership in Alfa Laval this August, something changed. Suddenly Tetra Laval has started to buy more, and in a recent flagging already owned over 25% of the shares in Alfa Laval. FAM has also continued its purchases and in most recent update on November 30th held 6% of the shares.
Swedish press is calling the situation an ongoing power struggle. Some speculate Rausings would try to avoid a situation where Wallenberg's own more than 10% of shares, which would make the able to stop a potential takeover. Tetra Laval’s CEO Jörgen Haglind scoffs at such theories and says the reason behind more purchases is that the company views the new purchases as “sound and solid financial investments”. FAM’s comments mirrored those sentiments, saying that Alfa Laval is a well managed global company with attractive growth prospects. FAM is also planning to be a long-term investor and feels that Alfa Laval fits well in its portfolio of holdings.
Alfa Laval is active in heat transfer, separation and fluid handling technologies. The stock is very cyclical, yet it is up 30% since the beginning of October. In November the company announced a new organization consisting of three selling organizations in its capital markets day. This week Alfa Laval won an order worth 85 million SEK to supply engineering and equipment to Indonesia to an edible oil company.
Tuesday, 19 July 2011
Alfa Laval reports second quarter results
Engineering sector got its first positive stock market reaction to a large firm report as Alfa Laval (OMX: ALFA), maker of heat exchangers, centrifugal separators and pump, reported a quarter during which order intake was up 32 percent and net sales increased by 23 percent, both handily topping 7 billion SEK. Earning per share were 1.92 Kronor and operating cash flow was 1 432 million. The numbers matched expectations pretty much to a tee.
Alfa Laval is guiding for Q3 of 2011 to surpass Q3 of 2010 levels. In the last interim report, when the company was guiding for Q2, it said demand is expected to be somewhat higher in Q2 of 2011 than in corresponding quarter the year before; thus semantically the current guidance is stronger. Alfa Laval’s stock gained 6.5% for the day. More information is available here.
Alfa Laval is guiding for Q3 of 2011 to surpass Q3 of 2010 levels. In the last interim report, when the company was guiding for Q2, it said demand is expected to be somewhat higher in Q2 of 2011 than in corresponding quarter the year before; thus semantically the current guidance is stronger. Alfa Laval’s stock gained 6.5% for the day. More information is available here.
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