Alfa Laval Net Profit Rises 32%; Order Intake Up 21%
20.07.10, 13:13 Uhr
STOCKHOLM -(Dow Jones)- Swedish engineering company Alfa Laval AB (ALFA.SK) Tuesday posted a 32% rise in second-quarter net profit and order intake rose 21% compared with a year earlier.
"The base business showed growth for the first time in two years and almost all business segments grew, compared to both last year and the first quarter," Chief Executive Lars Renstrom said.
Order intake in the quarter totaled 6.3 billion Swedish kronor ($856 million), up from SEK5.2 billion in the same period a year earlier.
The product and engineering company, which makes industrial heat exchangers, separation equipment and pumps and valves, has seen demand for its products dwindle, with order bookings in decline since the fourth quarter of 2008 as the financial crisis struck, although the decline has started to show signs of slowing.
The company said it expects demand during the third quarter to be in line with or somewhat lower than the second quarter.
Alfa Laval's net profit beat expectations, rising to SEK831 million from SEK630 million in the same period a year earlier.
Sales fell to SEK6.36 billion from SEK6.75 billion, above expectations of SEK5.8 billion. Operating income rose to SEK1.17 billion from SEK872 million a year ago.
"It was a great report," said Magnus Axen, analyst at Evli Bank, adding that "order intake was way above expectations."
At 1043 GMT, shares in Alfa Laval traded up 2.8% at SEK105.40. They have risen 40% in the past 12 months, while Sweden's 30 largest companies have gained about 21%.
Order intake in the quarter totaled 6.3 billion Swedish kronor ($856 million), up from SEK5.2 billion in the same period a year earlier.
The product and engineering company, which makes industrial heat exchangers, separation equipment and pumps and valves, has seen demand for its products dwindle, with order bookings in decline since the fourth quarter of 2008 as the financial crisis struck, although the decline has started to show signs of slowing.
The company said it expects demand during the third quarter to be in line with or somewhat lower than the second quarter.
Alfa Laval's net profit beat expectations, rising to SEK831 million from SEK630 million in the same period a year earlier.
Sales fell to SEK6.36 billion from SEK6.75 billion, above expectations of SEK5.8 billion. Operating income rose to SEK1.17 billion from SEK872 million a year ago.
"It was a great report," said Magnus Axen, analyst at Evli Bank, adding that "order intake was way above expectations."
At 1043 GMT, shares in Alfa Laval traded up 2.8% at SEK105.40. They have risen 40% in the past 12 months, while Sweden's 30 largest companies have gained about 21%.
DJG/dok
