“Order intake during the fourth quarter was SEK 6.8 billion, an increase
with 6 percent compared to the corresponding quarter 2010. Compared to
the third quarter order intake decreased with 15 percent, influenced by
a lower demand from the shipbuilding industry and an awaiting attitude
to making decisions concerning projects by certain customers. Order
intake for the aftermarket and the base business – excluding marine –
was unchanged sequentially. Sales increased by 14 percent to SEK 8.1
billion compared to the fourth quarter 2010 at the same time as the
operating result was SEK 1.4 billion, corresponding to an operating
margin of 17.0 percent. The operating margin was influenced by an
adaptation to a lower production pace, higher share of project
deliveries and continued investments in increased presence in BRIC
countries. 2011 was a successful year where order intake grew by 20
percent and invoicing by 16 percent at the same time as the operating
result increased 13 percent to SEK 5.3 billion.” Lars Renström,
President and CEO

Summary: fourth quarter
Order intake increased by 9 percent
* to SEK 6,774 (6,379) million.
Net sales increased by 17
percent * to SEK 8,149 (7,169) million.
Adjusted EBITA was SEK
1,387 (1,337) million.
Adjusted EBITA-margin was 17.0 (18.6)
percent.
Result after financial items was SEK 1,381 (1,273) million.
Net
income was SEK 934 (905) million.
Earnings per share was SEK 2.21
(2.14).
Cash flow from operating activities was SEK 1,291 (1,081)
million.
Impact on EBITA of foreign exchange effects: SEK -80 (32)
million.
Impact on result after financial items of:
- Aalborg
integration costs was SEK - (-) million
- restructuring
costs/reversals was SEK ‑90 (-) million.

Summary: full year 2011
Order intake increased by 28 percent
* to SEK 28,671 (23,869) million.
Net sales increased by 24
percent * to SEK 28,652 (24,720) million.
Adjusted EBITA was
SEK 5,287 (4,682) million.
Adjusted EBITA-margin was 18.5 (18.9)
percent.
Result after financial items was SEK 4,676 (4,364) million.
Net
income was SEK 3,251 (3,116) million.
Earnings per share was SEK
7.68 (7.34).
Cash flow from operating activities was SEK 3,429
(4,098) million.
Impact on EBITA of foreign exchange effects:
SEK ‑468 (356) million.
Impact on result after financial items
of:
- Aalborg integration costs was SEK -80 (-) million
-
restructuring costs/reversals was SEK -90 (80) million.

* excluding exchange rate variations

The Board of Directors will propose a dividend of SEK 3.25 (3.00) per
share and a mandate for repurchase of up to 5 percent of the issued
shares to the Annual General Meeting.

Outlook for the first quarter

"We expect that demand during the first quarter 2012 will be in line
with or somewhat higher than in the fourth quarter."

Earlier published outlook (October 21, 2011): "We expect that demand
during the fourth quarter 2011 will be in line with or somewhat lower
than in the third quarter."

The fourth quarter and full year 2011 report has been reviewed by the
company’s auditors, see page 24 for the review report.

Alfa Laval AB (publ)
PO Box 73
SE-221 00 Lund
Sweden
Corporate
registration number: 556587-8054

Alfa Laval AB (publ) discloses the information provided herin pursuant
to the Securities Markets Act and/or the Financial Instruments Trading
Act. The information was submitted for publication at 07.30 a.m. on
February 7, 2012

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