Alfa Laval AB (publ) Fourth quarter and full year 2007

Alfa Laval AB (publ) Fourth quarter and full year 2007

A strong quarter and an excellent year with profitable growth
“Demand for Alfa Laval's products during the quarter was strong and order intake
reached SEK 6.6  billion. For the near future we expect the demand to remain on
the current high level. 
The combination of high invoicing, which increased with 21 percent to SEK 7.2
billion, a very favourable product mix and a high internal efficiency
contributed to an excellent operating margin in the quarter - 23 percent or in
absolute terms nearly SEK 1.7 billion. 
The acquisition of the Finnish company Fincoil, with an annual turnover of SEK
375 million, strengthens our position in the European air heat exchanger market.
In total we have made acquisitions during 2007 that add 4 percent annual sales.
We are well positioned for the future with a high exposure towards emerging
markets and prioritized areas with structural growth.”

Lars Renström, President and CEO


Fourth quarter: 
Order intake increased by 0.3 percent * to SEK 6,576 (6,672) million.
Net sales increased by 21.3 percent * to SEK 7,220 (6,040) million.  
Adjusted EBITA was SEK 1,675 (1,018) million, including adverse foreign exchange
effects of SEK 44 million. 
Adjusted EBITA-margin was 23.2 (16.9) percent.
Result after financial items was SEK 1,587 (751) million. 
Result after tax increased to SEK 1,056 (489) million.
Earnings per share increased to SEK 9.66 (4.32).
Cash flow from operating activities was SEK 1,250 (995) million.

Full year 2007: 
Order intake increased by 18.3 percent * to SEK 27,553 (24,018) million.
Net sales increased by 29.1 percent * to SEK 24,849 (19,802) million.  
Adjusted EBITA was SEK 4,980 (3,010) million, including adverse foreign exchange
effects of SEK 254 million. 
Adjusted EBITA-margin was 20.0 (15.2) percent.
Result after financial items was SEK 4,557  (2,375) million. 
Result after tax increased to SEK 3,180 (1,725) million.
Earnings per share increased to SEK 28.48 (15.10).
Cash flow from operating activities was SEK 3,264 (2,619) million. 

* excluding exchange rate variations

The Board of Directors will propose to the Annual General Meeting a dividend of
SEK 9.00 (6.25) per share and to make a share split 4:1. A new mandate for
repurchase of up to 5 percent of the issued shares will also be proposed. 
Outlook for the near future 
“We expect the demand to remain on the current high level.”
Earlier published outlook (October 23, 2007): "In many of the markets,
geographical as well as customer segments that Alfa Laval serves, a continued
very strong demand is expected."