Restructuring expensive for Alfa Laval
In 2016, Alfa Laval saw declines in both order intake, revenue and profits. The accounts were negatively impacted due to costs associated with a major restructuring. The fourth quarter did show improvement compared to the third quarter of 2016.
"The restructuring program, launched in the autumn of 2016 developed well, and the new organization was fully operational from January 1 this year. The remaining one-time cost of 400 million Swedish kroner in connection with the initiative around manufacturing company structure affected earnings in the fourth quarter. This initiative is estimated in combination with the already announced changes, to provide an annual saving of 500 million Swedish kroner in total," says Tom Erixon, Chairman and CEO.
The order intake in Marine & Diesel was sequentially positive with the support of a good mix of ships and improved demand for pump systems and the smoke cleaning system PureSOx. The US Coast Guard's approval of Alfa Laval PureBallast in December means that the conditions for a gradual increase in orders for the system starting in 2017 are looking good.
Summary: Fourth quarter
The order intake decreased by 11 percent to 8,709 million Swedish kroner, from 9,422 million Swedish kroner, in the same quarter of 2015.
Revenue decreased by 12 percent to SEK 9,904 million Swedish kroner from 10,805 million Swedish kroner in the same period last year.
Net income for the quarter wound up at 616 million Swedish kroner compared to 935 million Swedish kroner in the fourth quarter of 2015.
Summary: Full year 2016
Order intake decreased by 13 percent to 32 billion Swedish kroner, from 37,1 billion Swedish kroner in 2015.
Revenue decreased by 10 percent from 39,7 billion Swedish kroner in 2015 to 35,6 billion Swedish Kroner.
Net income for the full year was at 2,3 billion Swedish kroner from 3,9 billion Swedish kroner, in 2015.
The company expects that demand in the first quarter of 2017 will be somewhat lower than
in the fourth quarter of 2016. The Board will propose a dividend of 4,25 Swedish kroner per share to the General Meeting, the same last year.
Source: Alfa Laval AB / Maritime Denmark