PR Newswire | Feb 3, 2021 02:01AM EST

02/03 01:00 CST

Alfa Laval AB (publ) Fourth quarter and full year 2020 LUND, Sweden, Feb. 3, 2021

LUND, Sweden, Feb. 3, 2021 /PRNewswire/ --

Stable demand and improved profitability

Q4 2020

* Demand was stable during the fourth quarter, with 4% sequential order growth. * The adjusted EBITA margin improved to 18.4 (17.4) percent. * Launch of a global restructuring program.

Full year 2020

* Order intake declined with 6 percent, excluding currency effects. * The adjusted EBITA margin improved to 17.4 (17.2) percent, mainly driven by the cost reduction program. * The cash flow from operating activities improved by close to 50 percent to SEK 7.7 billion and resulted in a further strengthening of the balance sheet.

Summary

Fourth quarter

Order intake decreased by 10 percent* at SEK 9,272 (11,153) million.

Net sales decreased by 11 percent* to SEK 10,695 (12,964) million.

Adjusted EBITA**: SEK 1,969 (2,250) million.

Adjusted EBITA margin**: 18.4(17.4) percent.

Result after financial items SEK 924 (1,860) million.

Net income SEK 564 (1,424) million.

Earnings per share SEK 1.33(3.39).

Cash flow from operating activities SEK 2,664 (2,392) million.

Impact on adjusted EBITA of foreign exchange effects SEK 20 (155) million.

Impact on result after financial items of comparison distortion items SEK -733 (-2) million

Full year

Order intake decreased by 6 percent* to SEK 39,833(44,119) million.

Net sales decreased by 8 percent* to SEK 41,468(46,517) million.

Adjusted EBITA**: SEK 7,231(7,989) million.

Adjusted EBITA margin**: 17.4(17.2) percent.

Result after financial items SEK 4,977(7,221) million.

Net income SEK 3,580(5,508) million.

Earnings per share SEK 8.47(13.08).

Cash flow from operating activities SEK 7,723 (5,223) million.

Impact on adjusted EBITA of foreign exchange effects SEK 180 (430) million.

Impact on result after financial items of comparison distortion items SEK -796 (189) million.

Return on capital employed (%)**:19.1(23.0).

Net debt to EBITDA, times**:0.48(0.88).

* Excluding currency effects. ** Alternative performance measures.

Outlook for the first quarter

"We expect demand in the first quarter to be about the same as in the fourth quarter."

Earlier published outlook (October 22, 2020): "We expect demand in the fourth quarter to be somewhat higher than in the third quarter."

The Board of Directors will propose a dividend of SEK 5.50 (-) per share and a mandate for repurchase of up to 5 percent of the issued shares to the Annual General Meeting.

The Q4 2020 report has been reviewed by the company's auditors, see page 24 for the review report.

This information is information that Alfa Laval AB (publ) is obliged to make public pursuant to the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out below, at CET 7.30 on February 3, 2021.

For more information, please contact:Johan LundinHead of Investor RelationsPhone: +46 46 36 65 10Mobile: +46 730 46 30 90E-mail: : johan.lundin@alfalaval.comAlfa Laval AB (publ)PO Box 73SE-221 00 LundSweden Corporate registration number: 556587-8054

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SOURCE Alfa Laval