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