Alfa Laval: demand strengthens, share price surges

(CercleFinance.com) - Swedish engineering group Alfa Laval jumped on the Stockholm Stock Exchange this Thursday after forecasting an improvement in demand in Q2.


The specialist in heat exchange, fluid separation and transfer reported this morning adjusted operating profit before non-recurring items (Ebita) of 2.44bn SEK for Q1, compared with 2.39bn SEK a year earlier.

This performance was well below the consensus of 2.60bn SEK.

Sales rose to 14.9 billion euros, compared with 14.1 billion a year earlier, but were again below the 15.8 billion expected by analysts.

The fact that sales and earnings fell short of forecasts has taken a back seat today", the analysts at RBC noted in a note.

"The market's attention is more focused on the evolution of demand, which was not only robust in the first quarter, but seems to be gaining momentum in the second", added the Canadian broker.

In its press release, Alfa Laval indicated that it was indeed expecting a 'significant improvement in demand in the second quarter compared with the first'.

Following these announcements, the share price climbed 7.5% on Thursday, posting the second highest rise on the Stockholm Stock Exchange's OMXS30 index.

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