The following is a summary of the Alfa Laval Corporate AB (ALFVY) Q1 2024 Earnings Call Transcript:
Financial Performance:
Alfa Laval reported stable Q1 2024 order intake year-on-year, up 8% sequentially.
EBITA improved slightly from the previous year, but the margin decreased somewhat.
The company's order book grew to about SEK 48 billion with book-to-bill in the quarter being 1.23.Adjusted EBITA margin was 16.3% or SEK 2.4 billion.
Q1 generated a cash flow from operating activities of SEK 1.7 billion.
Q1 investment of SEK 818 million indicates increased capital expenditure.
The company saw strong order intake especially in Marine with significant contribution from its pumping system orders.
Business Progress:
Alfa Laval continues to lead the energy transition while maintaining profitability and a strong balance sheet.
Growth in services led to this sector accounting for 31% of Energy division's order intake.
Despite lower-than-expected invoicing, the Food & Water division witnessed robust demand and grew 10% versus last year.
The Marine division demand was stronger than forecasted and surged by 30% sequentially.
Alfa Laval is expanding into new business areas, particularly in the HVAC sector.
Ongoing investments are aimed at operations development and manufacturing technology.
The company plans to sustain organic growth with focus also on potential mergers and acquisitions.
Alfa Laval noted increasing interest in multifuel ships, signaling an emerging market.
The company urges attendance to its planned Capital Markets Day in November in Volterra.
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