Swedish Alfa Laval, which produces equipment such as pumps and valves for the maritime sector, books a stronger Q1 result than expected.
Sales in the first quarter increased by 25 percent to SEK 14.11bn (USD 1.4bn) against Bloomberg-assembled analyst estimates of SEK 13.5bn.
In terms of sales, the strong result is especially driven by the Food & Water division that offers solutions for areas including the food, brewery and water treatment sectors.
The order intake was a positive surprise as well and increased by 32 percent to SEK 18.4bn against expectations of SEK 15.5bn.
The adjusted operating income (EBITA) improved to SEK 2.39bn from SEK 1.82bn. Analysts had guided for a result of SEK 2.07bn.
Alfa Laval expects market conditions to remain advantageous, however, lower demand is on the menu for the next quarter.
Furthermore, global supply chains continue to stabilize, according to CEO Tom Erixon, whom expects the positive trend to carry on into the second quarter.
”The weakness in many consumer sectors due to interest rate hikes are still not visible in Alfa Laval’s end markets,” states the CEO.
English edit: Kristoffer Grønbæk