Alfa Laval Dips on Q2 Profit, Margin
Q2 adjusted EBITA SEK is 1.39 bln vs year-ago 1.82 bln and 1.44 bln seen in Reuters poll.
Other highlights include:
- Q2 adjusted EBITA margin 15.6 pct vs year-ago 17.8 pct and consensus forecast 16.3 pct
- Q2 net sales decreased to SEK 8.95 bln vs year-ago 10.18 bln and 8.83 bln seen in Reuters poll
- Q2 order intake decreased to SEK 8.10 bln vs year-ago 9.15 bln and consensus forecast 7.90 bln
- CEO says "We expect that demand during the third quarter 2016 will be in line with or somewhat lower than in the second quarter"
- Shares in Alfa Laval drop 4.6 pct after results while Stockholm large cap index OMXS30 sheds 0.6 pct
- CEO says sees slightly lower demand in Marine & Diesel division in Q3 vs Q2. Sees Equipment division demand flat or somewhat lower in Q3 vs Q2.
- CEO says operating margin in Process Technology continued to be burdened by a negative mix, which is expected to remain during the rest of the year
- CEO says oil & gas segment will pick up at some point ahead, but timing is uncertain: "At the current (oil price) level around 50 dollar many investors begin to look into their investment plans to see what can be done ahead," Alfa CEO Tom Erixon said in a conference call
Alfa sees positive FX impact of SEK 475 million in 2016 and 100 million in 2017 and says strategic review that was announced in previous quarter is continuing according to plan. Additionally, the firm says result of this review will be presented before end of year.
By Oskar von Bahr