Alfa Laval AB (publ) Interim report April 1 - June 30, 2007

Alfa Laval AB (publ) Interim report April 1 - June 30, 2007

“During the second quarter 2007 we had another record quarter with the highest
ever operating result as well as operating margin. 

Orders received increased organically with 12 percent and reached SEK 6.8
billion. The strongest market segments were Process Industry and Sanitary.
Orders received grew with 70 percent in Latin America, while Asia and Western
Europe were stable on a high level.

With the acquisition of AGC Engineering in the US and the increase of ownership
in Alfa Laval (India) Ltd we have further strengthened our position in these
important countries.

For the near future we expect a lower activity level for large orders,
particularly in our market segment Energy & Environment. This is due to the very
high global demand that creates a lack of capacity among larger end-customers
and contractors.

The operating margin in the quarter reached 18.5 percent. The combination of
very high capacity utilisation, favourable product mix and high internal
efficiency contributed to the result. For the near future we expect the
operating margin to remain well above 15 percent.”

Lars Renström, President and CEO, Alfa Laval

Second quarter: 
Order intake increased by 12.7 percent * to SEK 6,822 (6,217) million.
Net sales increased by 28.6 percent * to SEK 6,094 (4,876) million.  
Adjusted EBITA was SEK 1,130 (706) million, including adverse foreign exchange
effects of SEK 76 million. 
Adjusted EBITA-margin was 18.5 (14.5) percent.
Result after financial items was SEK 1,037 (587) million. 
Result after tax increased to SEK 733 (455) million.
Earnings per share increased to SEK 6.48 (3.97).
Cash flow from operating activities was SEK 488 (517) million.

Six months: 
Order intake increased by 23.4 percent * to SEK 13,827 (11,698) million.
Net sales increased by 30.9 percent * to SEK 11,244 (8,952) million.  
Adjusted EBITA was SEK 1,965 (1,231) million, including adverse foreign exchange
effects of SEK 155 million. 
Adjusted EBITA-margin was 17.5 (13.8) percent.
Result after financial items was SEK 1,718 (1,013) million. 
Result after tax increased to SEK 1,202 (788) million.
Earnings per share increased to SEK 10.59 (6.87).
Cash flow from operating activities was SEK 1,038  (909) million. 
* excluding exchange rate variations

Outlook for the near future "In many of the markets, geographical as well as customer segments that Alfa
Laval serves, a continued very strong demand is expected."

Earlier published outlook (April 23, 2007):"In most of the markets, geographical as well as customer segments that Alfa
Laval serves, a continued very strong demand is expected."