PR Newswire | Oct 22, 2020 01:47AM EDT

10/22 00:46 CDT

Alfa Laval AB (publ) Interim report July 1 - September 30, 2020 LUND, Sweden, Oct. 22, 2020

LUND, Sweden, Oct. 22, 2020 /PRNewswire/ --

Stable demand and unchanged profitability

* Demand remained on a stable but low level in the third quarter. * The operating margin was 17.6 percent despite lower volumes. Tangible effects from short term cost savings program. * Continued good cash flow resulted in a low net debt. * A public tender offer for all shares in Neles published on July 13. The acceptance level condition revised from 2/3 to >50 percent on October 15.

Summary

Third quarter

Order intake decreased by 9 percent* at SEK 8,935 (10,728) million.Net sales decreased by 14 percent* to SEK 9,728 (12,056) million. Adjusted EBITA**: SEK 1,710 (2,141) million.Adjusted EBITA margin**: 17.6(17.8) percent.Result after financial items*** SEK 1,382 (1,907) million. Net income*** SEK 1,038(1,447) million. Earnings per share*** SEK 2.46(3.43).Cash flow from operating activities SEK 1,256 (1,247) million.Impact on adjusted EBITA of foreign exchange effects SEK 10 (85) million.Impact on result after financial items of comparison distortion items SEK -63 (-5) million.

First nine months

Order intake decreased by 5 percent* to SEK 30,561(32,966) million.Net sales decreased by 6 percent* to SEK 30,773(33,553) million. Adjusted EBITA**: SEK 5,262(5,739) million.Adjusted EBITA margin**: 17.1(17.1) percent.Result after financial items*** SEK 4,053(5,361) million. Net income*** SEK 3,016(4,084) million. Earnings per share*** SEK 7.14(9.69).Cash flow from operating activities SEK 5,059 (2,831) million.Impact on adjusted EBITA of foreign exchange effects SEK 160 (275) million.Impact on result after financial items of comparison distortion items SEK -63 (191) million.Return on capital employed (%) **: 21.4(22.5).Net debt to EBITDA, times **: 0.49(1.13).

* Excluding currency effects.** Alternative performance measures.*** Prior quarters 2020 have been restated, see page 18.

Outlook for the fourth quarter

"We expect demand in the fourth quarter to be somewhat higher than in the third quarter." Earlier published outlook (July 21, 2020): "We expect demand in the third quarter to be somewhat lower than in the second quarter."

The Q3 2020 report has been reviewed by the company's auditors, see page 26 for the review report.

This information is information that Alfa Laval AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at CET 7.30 on October 22, 2020.

For more information, please contact:

Johan Lundin, Head of Investor RelationsPhone: +46-46-36-65-10Mobile: +46-730-46-30-90E-mail: : johan.lundin@alfalaval.com

Alfa Laval AB (publ)PO Box 73SE-221 00 LundSweden

Corporate registration number: 556587-8054

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SOURCE Alfa Laval