(CercleFinance.com) – Alfa Laval on Wednesday published sales and order intake above expectations for the fourth quarter, but the weakness of its margins disappointed investors, who sanctioned the title on the Stockholm Stock Exchange.
The Swedish engineering group reported a net profit of 1.48 billion crowns in the last three months of the year, against a profit of 564 million in the same period of 2020.
Its turnover increased by 9%, to 11.69 billion crowns, while its order intake rose by 24% to reach 11.65 billion.
The only problem is that its adjusted operating margin (EBITA) fell at the same time to 17%, against 18.4% a year earlier, a performance well below analysts’ forecasts.
“Obviously the market is wondering what the implications of this disappointment are for new year targets,” said a trader.
In its press release, Alfa Laval said it expected increased demand in
first quarter compared to the fourth quarter, whereas until now it envisaged a stable development.
Listed on the Nasdaq Nordic market, the action lost more than 4% following this publication.
Alfa Laval manufactures centrifuges, pumps, valves and tank equipment for the food, pharmaceutical and chemical sectors, among others.
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