Alfa Laval AB (publ) Fourth quarter and full year 2020

Rhea-AI Summary

Alfa Laval announced its Q4 2020 results with stable demand and improved profitability. The quarter recorded a 4% sequential order growth, although order intake fell by 10%. Adjusted EBITA margin rose to 18.4%. For the full year, order intake declined by 6%, while net sales dropped by 8%. However, the cash flow from operations surged by 50% to SEK 7.7 billion. A dividend of SEK 5.50 per share is proposed, and the company plans a global restructuring.

Positive

• Q4 EBITA margin increased to 18.4% from 17.4%.
• Cash flow from operating activities improved by 50% to SEK 7.7 billion.
• Proposed dividend of SEK 5.50 per share.
• Global restructuring program launched.

Negative

• Q4 order intake decreased by 10% to SEK 9,272 million.
• Net sales fell by 11% to SEK 10,695 million.
• Full year order intake down 6% to SEK 39,833 million.
• Full year net sales decreased by 8% to SEK 41,468 million.

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 Lundin
Head of Investor Relations
Phone: +46 46 36 65 10
Mobile: +46 730 46 30 90
E-mail: : johan.lundin@alfalaval.com 
Alfa Laval AB (publ)
PO Box 73
SE-221 00 Lund
Sweden 
Corporate registration number: 556587-8054 

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/alfa-laval/r/alfa-laval-ab--publ--fourth-quarter-and-full-year-2020,c3278161

The following files are available for download:

https://mb.cision.com/Main/905/3278161/1366901.pdf

Release

 

View original content:http://www.prnewswire.com/news-releases/alfa-laval-ab-publ-fourth-quarter-and-full-year-2020-301220949.html

SOURCE Alfa Laval

FAQ

What were Alfa Laval's Q4 2020 financial results?

Alfa Laval reported a Q4 2020 adjusted EBITA margin of 18.4%, with a net sales decrease of 11% to SEK 10,695 million.

How much did Alfa Laval's cash flow from operating activities improve in 2020?

Cash flow from operating activities improved by 50% to SEK 7.7 billion.

What is Alfa Laval's order intake decline for the full year 2020?

Alfa Laval's order intake declined by 6% for the full year 2020.

What dividend did Alfa Laval propose for 2020?

Alfa Laval proposed a dividend of SEK 5.50 per share.

What restructuring program did Alfa Laval launch?

Alfa Laval announced a global restructuring program.