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Lydall Inc, USA
Filtration Industry Analyst
March 2005
Alfa Laval AB, Sweden Key Figures (SKr million) Fourth quarter ended 31.12.2004 Order Intake
3750
Net Sales
4166.1
4086.3
Expenses
856.4
846.5
1392.4
1385.0
536.0
538.5
Return after Financial Items
303
275
Cash Flow from Operations
302
629
Adjusted EBITA
Year ended 31.12.2004
2003
15 740
14 145
Net Sales
14 985.8
13 909.3
Expenses
3386.2
3315.7
Adjusted Gross Profit
5342.2
5235.8
Adjusted EBITA
1956.0
1920.1
Return after Financial Items
1070
817
Cash Flow from Operations
1118
1654
Order Intake
COMMENT Alfa Laval has posted solid full-year 2004 figures, with net sales up 11.7% on the previous year at SKr14 985.8 million and order intake increasing 15.2% to SKr15 740.0 million (both excluding exchange rate variations). For the year, the Equipment division saw its orders increase 13.2% to SKr8862.3 million and net sales increase 8.6% to SKr8250.4 million compared to the previous year. All of the division’s six segments developed strongly, the most significant growth being in the Marine & Diesel, and, OEM units. In the Process Technology division, orders for 2004 rose 18.5% on the year earlier figure to reach
10
Key Figures (US$ million) Fourth quarter ended 31.12.2004
2003
3771
Adjusted Gross Profit
COMPANY WATCH
Lydall Inc, USA
SKr6818.0 million, while net sales increased 16.2% to SKr6683.3 million. Excluding the contribution of the bioKinetics acquisition, these increases were 16.9% and 13.8% respectively. One of Alfa Laval’s success stories has been the Alfdex system that it jointly owns with Haldex. Built around the company’s expertise in centrifugal separation, the system offers a very efficient removal of oil droplets and soot particles from the ventilation air in diesel engine crankcases. With recent sales agreements reached with Volvo and Scania, the Alfdex system has secured annual revenues of SKr1000 million in a short period of time. ■
2003
Net Sales Of Which: Filtration/Separation
75.6
63.1
19.9
18.1
Cost of Sales
62.6
50.2
Gross Margin
13.0
12.9
Operating Income/(Loss) Of Which: Filtration/Separation
(1.5)
0.4
1.4
1.3
Income from Continuing Operations
(1.2)
0.4
Net Income
(1.2)
0.4
Year ended 31.12.2004
2003
Net Sales Of Which: Filtration/Separation
292.4
271.4
81.2
74.9
Cost of Sales
234.9
207.0
Gross Margin
57.5
64.4
Operating Income/(Loss) Of Which: Filtration/Separation
0.3
13.8
11.0
8.8
Income from Continuing Operations
(0.5)
8.5
Net Income
(0.5)
7.7
COMMENT Within Lydall’s Filtration /Separation business, air filtration sales were strong, particularly in the Asian market throughout 2004. Liquid filtration sales were also up, while Vital Fluids sales dropped due to lower bioprocessing and OEM sales. Operating income for the segment increased 8% for the quarter and 25% for the full year compared with 2003. The air and liquid filtration businesses improved profitability through higher volume, cost reductions,
and better absorption of overhead. This was partially offset by a dip in performance from the Vital Fluids business related to product recall and production inefficiencies during the year. But David Freeman, president and chief executive officer, said that the company’s achievements had been overshadowed by the cost and diversion of restructuring its domestic automotive manufacturing operations and its expansion efforts in Europe (now complete).■
March 2005
Alfa Laval AB, Sweden Key Figures (SKr million) Fourth quarter ended 31.12.2004 Order Intake
3750
Net Sales
4166.1
4086.3
Expenses
856.4
846.5
1392.4
1385.0
536.0
538.5
Return after Financial Items
303
275
Cash Flow from Operations
302
629
Adjusted EBITA
Year ended 31.12.2004
2003
15 740
14 145
Net Sales
14 985.8
13 909.3
Expenses
3386.2
3315.7
Adjusted Gross Profit
5342.2
5235.8
Adjusted EBITA
1956.0
1920.1
Return after Financial Items
1070
817
Cash Flow from Operations
1118
1654
Order Intake
COMMENT Alfa Laval has posted solid full-year 2004 figures, with net sales up 11.7% on the previous year at SKr14 985.8 million and order intake increasing 15.2% to SKr15 740.0 million (both excluding exchange rate variations). For the year, the Equipment division saw its orders increase 13.2% to SKr8862.3 million and net sales increase 8.6% to SKr8250.4 million compared to the previous year. All of the division’s six segments developed strongly, the most significant growth being in the Marine & Diesel, and, OEM units. In the Process Technology division, orders for 2004 rose 18.5% on the year earlier figure to reach
10
Key Figures (US$ million) Fourth quarter ended 31.12.2004
2003
3771
Adjusted Gross Profit
COMPANY WATCH
Lydall Inc, USA
SKr6818.0 million, while net sales increased 16.2% to SKr6683.3 million. Excluding the contribution of the bioKinetics acquisition, these increases were 16.9% and 13.8% respectively. One of Alfa Laval’s success stories has been the Alfdex system that it jointly owns with Haldex. Built around the company’s expertise in centrifugal separation, the system offers a very efficient removal of oil droplets and soot particles from the ventilation air in diesel engine crankcases. With recent sales agreements reached with Volvo and Scania, the Alfdex system has secured annual revenues of SKr1000 million in a short period of time. ■
2003
Net Sales Of Which: Filtration/Separation
75.6
63.1
19.9
18.1
Cost of Sales
62.6
50.2
Gross Margin
13.0
12.9
Operating Income/(Loss) Of Which: Filtration/Separation
(1.5)
0.4
1.4
1.3
Income from Continuing Operations
(1.2)
0.4
Net Income
(1.2)
0.4
Year ended 31.12.2004
2003
Net Sales Of Which: Filtration/Separation
292.4
271.4
81.2
74.9
Cost of Sales
234.9
207.0
Gross Margin
57.5
64.4
Operating Income/(Loss) Of Which: Filtration/Separation
0.3
13.8
11.0
8.8
Income from Continuing Operations
(0.5)
8.5
Net Income
(0.5)
7.7
COMMENT Within Lydall’s Filtration /Separation business, air filtration sales were strong, particularly in the Asian market throughout 2004. Liquid filtration sales were also up, while Vital Fluids sales dropped due to lower bioprocessing and OEM sales. Operating income for the segment increased 8% for the quarter and 25% for the full year compared with 2003. The air and liquid filtration businesses improved profitability through higher volume, cost reductions,
and better absorption of overhead. This was partially offset by a dip in performance from the Vital Fluids business related to product recall and production inefficiencies during the year. But David Freeman, president and chief executive officer, said that the company’s achievements had been overshadowed by the cost and diversion of restructuring its domestic automotive manufacturing operations and its expansion efforts in Europe (now complete).■