"As a result of the strategy review a restructuring programme was launched during the autumn 2016. It developed well and the new organisation became fully operational from first of January this year. The remaining onetime cost of SEK 400 million related to the initiative concerning the manufacturing structure burdened the result in the fourth quarter. This initiative is estimated, in combination with already announced changes, to give annual savings of SEK 500 million in total."
Order intake for the fourth quarter strengthened compared to the third quarter, partly driven by large projects within process technology and partly by an increased demand for marine equipment to new cruise ships. A number of larger projects of SEK 545 million in total were announced during the quarter, mainly from the refinery and petrochemical sectors. At the same time, somewhat improved conditions for other parts of the business directed to oil and gas was noted. The order intake within marine and diesel was sequentially positive with support from a good ship mix and an improved demand for pumping systems as well as the exhaust gas cleaning system PureSOx. The US Coast Guard's approval of Alfa Laval PureBallast in December means that the conditions for a gradually increased order intake for the system are good, starting in 2017.
The cost development in the quarter was positive. Initiatives within manufacturing and engineering delivered according to plan at the same time as we started to see positive effects from the adjustments within sales and administration. The tied up capital decreased and the cash flow from operating activities was strong with SEK 1.9 billion in the quarter" said Tom Erixon, President and CEO.Summary: fourth quarter
- Order intake decreased by 11% to SEK 8709 (9422) million.
- Net sales decreased by 12% to SEK 9904 (10 805) million.
- Adjusted EBITA**: SEK 1488 (1751) million.
- Adjusted EBITA margin**: 15.0 (16.2) %.
- Result after financial items: SEK 877 (1390) million.
- Net income: SEK 616 (935) million.
- Earnings per share: SEK 1.46 (2.22).
- Cash flow from operating activities: SEK 1925 (1875) million.
- Impact on adjusted EBITA of foreign exchange effects: SEK 141 (80) million.
- Impact on result after financial items of comparison distortion items: SEK -400 (-) million.
- Summary: full year 2016
- Order intake decreased by 13% to SEK 32 060 (37 098) million.
- Net sales decreased by 10% to SEK 35 634 (39 746) million.
- Adjusted EBITA**: SEK 5553 (6811) million.
- Adjusted EBITA margin**: 15.6 (17.1) %.
- Result after financial items: SEK 3325 (5444) million.
- Net income: SEK 2312 (3861) million.
- Earnings per share: SEK 5.46 (9.15).
- Cash flow from operating activities: SEK 4979 (5850) million.
- Impact on adjusted EBITA of foreign exchange effects: SEK 478 (450) million.
- Impact on result after financial items of comparison distortion items: SEK -1500 (-) million.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/31012017/alfa-laval-release-results/