Alfa Laval AB (publ) Fourth Quarter and Full Year 2014

"The order intake in the fourth quarter was SEK 10.5 billion, out of which 1 billion comes from a re-valuation of the Frank Mohn AS order backlog. Adjusted for the re-valuation the order intake was 9.5 billion. Both net sales and operating result reached record levels. Net sales increased with 25 percent to 10.8 billion and the operating result increased with 37 percent to 1.9 billion.

Process Technology’s order intake grew sequentially as a consequence of a very strong development for large orders. The division had a good mix between different end customer markets, which among others included oil & gas, power generation, refinery, food and life science. Excluding the re-valuation of the Frank Mohn AS order backlog, the order intake within Marine & Diesel decreased somewhat following the development of the shipyard contracting earlier during the year. The demand for sulphur cleaning systems was continued good. Equipment’s order intake was sequentially unchanged. A positive development for Sanitary due to a generally higher demand from the food and pharmaceutical industry was mitigated by seasonal downturns within other areas. The increased focus on Service continued to deliver growth and especially Marine & Diesel developed well. In the fourth quarter Service grew by about 25 percent compared to the corresponding quarter 2013, out of which the organic growth was 6 percent.”

Lars Renström, President and CEO

Summary: fourth quarter * 
Order intake increased by 22 percent** to SEK  10,509 (8,133) million. 
Net sales increased by 19 percent** to SEK  10,775 (8,609) million. 
Adjusted EBITA was SEK 1,940 (1,412) million. 
Adjusted EBITA margin was 18.0 (16.4) percent. 
Result after financial items was SEK  1,177 (1,201) million. 
Net income was SEK 911 (871) million.                                         
Earnings per share was SEK 2.15 ( 2.07 ) . 
Cash flow from operating activities was SEK  1,690 (1,230) million. 
Impact on EBITA of foreign exchange effects was SEK 97 (-45) million. 
Impact on result after financial items of comparison distortion items was SEK - ( -) million .

Summary: full year 2014 * 
Order intake increased by 18 percent** to SEK  36 ,660 ( 30 ,202) million. 
Net sales increased by 14 percent** to SEK  35,067 (29,801) million. 
Adjusted EBITA was SEK 5,895 (4,914) million. 
Adjusted EBITA margin was 16.8 (16.5) percent. 
Result after financial items was SEK  4,121 ( 4,172 ) million. 
Net income was SEK 2,968 ( 3,040 ) million.                                         
Earnings per share was SEK 7.02 ( 7.22 ) . 
Cash flow from operating activities was SEK  5,123 (4,233) million. 
Impact on EBITA of foreign exchange effects was SEK  70 (- 187 ) million. 
Impact on result after financial items of comparison distortion items was SEK -320 ( - ) million.

* 2013 restated to IFRS 11. ** Excluding currency effects. 
For assessment of the outcome of the quarter, see the section "Integration of Frank Mohn” on page 7.

The Board of Directors will propose a dividend of SEK 4.00 (3.75) per share to the Annual General Meeting.

Outlook for the first quarter 

"We expect that demand during the first quarter 2015 will be somewhat lower than in the fourth quarter.” 

Earlier published outlook (October 28, 2014): "We expect that demand during the fourth quarter 2014 will be on about the same level as in the third quarter.”

The fourth quarter and full year 2014 report has not been subject to review by the company’s auditors.

For more information, please contact:

Peter Torstensson, Senior Vice President, Communications 
Phone: +46 46 36 72 31 
Mobile: +46 709 33 72 31 
peter.torstensson@alfalaval.com

Gabriella Grotte, Investor Relations Manager 
Phone: +46 46 36 74 82 
Mobile: +46 709 78 74 82 
gabriella.grotte@alfalaval.com

Alfa Laval AB (publ) 
PO Box 73 
SE-221 00 Lund 
Sweden 
Corporate registration number: 556587-8054

Alfa Laval AB (publ) discloses the information provided herin pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 07.30 a.m. on February 3, 2015

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