Ahlstrom Corp, Finland

Ahlstrom Corp, Finland

COMPANY WATCH Alfa Laval AB, Sweden Ahlstrom Corp, Finland Key Figures (€ million) First quarter ended 31.3 2016 2015 Order Intake 7710 9844 Ne...

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COMPANY WATCH

Alfa Laval AB, Sweden

Ahlstrom Corp, Finland Key Figures (€ million) First quarter ended 31.3 2016

2015

Order Intake

7710

9844

Net Sales Of Which: Equipment Process Technology Marine & Diesel

8199

9071

2392 2771 3036

2455 3121 3495

2015

Net Sales Of Which: Filtration & Performance

243.7

251.5

147.6

150.5

Cost of Goods Sold

200.9

209.0

Gross Profit

42.8

42.6

Sales and Marketing Expenses

10.3

11.2

4.5

4.3

R&D Expenses

Key Figures (SEK million) First quarter ended 31.3 2016

Administrative Expenses

19.3

18.3

Operating Profit/(Loss) Of Which: Filtration & Performance

8.7

11.0

5.7

7.0

Profit/(Loss) before Taxes

4.8

12.1

Cost of Goods Sold

5429

6015

Gross Profit

2770

3056

Sales Costs

1089

1077

Administration Costs

339

367

R&D Costs

186

190

1070

1293

351 274 570

284 410 702

871

863

Operating Income Of Which: Equipment Process Technology Marine & Diesel Net Income

COMMENT Ahlstrom Corp has posted net sales for continuing operations for the first quarter of fiscal 2016 of €243.7 million, a 3.1% decrease on the previous year. The company attributed the downturn to lower sales volumes, particularly for filtration, medical and tape products, and a lesser extent to adverse currency effects. Organic sales at constant currencies were down 2.5% on the prior year. Operating profit, impacted by the lower sales as well as restructuring costs, was down 20.9% on the prior period at €8.7 million. The adjusted operating profit (that excludes restructuring costs, impairment charges and capital gains or losses), however, was up 5.3% on the 2015 figure at €12.9 million supported by lower energy and raw material costs, as well as improved margins and product mix. In Ahlstrom’s Filtration & Performance segment revenues fell 1.9% on the prior year to 88

Filtration Industry Analyst

€147.6 million. The segment saw higher selling prices and increased sales of its wallcover and industrial nonwoven products, but this was more than offset by lower sales of filtration materials and an adverse currency effect. “We are executing our redefined strategy announced at the beginning of the year, and our new operating model is gaining momentum and bringing us further cost savings,” Marco Levi, Alstrom’s president and CEO, said. Looking forward, Ahlstrom expects full year net sales from continuing operations in fiscal 2016 to be in the range of €950 million–€1050 million. The adjusted operating profit from continuing operations is expected to be 4.2–5.2% of net sales. The outlook excludes Ahlstrom’s Building & Wind business unit, which has been reported as part of discontinued operations from the beginning of 2016. Q www.ahlstrom.com

COMMENT Alfa Laval AB has posted first quarter net sales for fiscal 2016 of SEK8.2 billion, down 9.6% on the prior year. The fall was 6.4% when adjusted for currency effects. Revenues were down in all three of the company’s segments, falling 2.6% in its Equipment division to SEK2.4 billion, 13.1% in the Marine & Diesel sector to SEK3.0 billion and 11.2% in the Process Technology unit to SEK2.8 billion. Order intake suffered even bigger falls, with the overall figure for the period down 21.7% on the 2015 comparator. Again, they were down in all three segments with falls of 7.6%, 10.5% and 39.8% in the Equipment (SEK2.4 billion), Process Technology (SEK2.9 billion) and Marine & Diesel (SEK2.4 billion) sectors, respectively.

Alfa Laval did post a year-onyear gain of just under 1% in net income to SEK871 million. Tom Erixon, Alfa Laval’s president and CEO, said the results were in line with expectations as they reflected challenging market conditions. “Looking specifically at the end-market development, the low oil price continued to hamper the business sentiment in the oil and gas industries and the contracting level for ships was low,” he said. “Given the challenging conditions in some of our largest markets, we are constantly driving initiatives, including improved and more efficient sourcing as well as a balancing of resources in our supply chain to protect profitability. In addition we have initiated a review of the strategic direction for the Group,” Erixon added. Q www.alfalaval.com

June 2016