Alfa Laval has announced that order intake for 2014 rose to SEK 36.7 billion, a 21 percent increase on the previous year.
According to the company’s report, published on 31st March sales also rose 18 percent to SEK 35.1 billion and operating margin was 16.8 percent, an improvement over 2013’s result.
For the company’s marine & diesel division, there was positive progress in 2014, with good contracting activity among shipyards in late 2013 and early 2014.
Overal Alfa Laval says that it achieved strong order growth across its portfolio with the service business benefitting from the utilisation rate of the global fleet.
Demand for environmental solutions continued to increase as the January 1 2015 deadline for sulphur emissions in ECA areas came closer. Alfa Laval’s PureSOx 2.0 was unveiled and the company says that demand developed positively and resulted in a substantial increase in order intake.
The acquisition of Frank Mohn AS, a supplier of submerged pumping systems, added significantly to the company’s overall order take, which stood at SEK 12.5 million in 2014 compared to SEK 6.7 million in the previous year. It also added a new fluid handling technology for both marine and offshore applications.
Speaking about the growth of Alfa Laval in geographical terms, President and CEO Lars Renström said:
"The US strengthened its position as Alfa Laval’s largest market, driven by generally favorable demand, shale gas extraction and a minor acquisition. In China, we noted significant, broad-based growth due to increasing demand from the shipbuilding industry and the recent expansion of our sales and service resources.
"South Korea advanced to a third-place position as a result of strong demand from the shipbuilding and offshore industry, in which Frank Mohn is also active, while the operations in Russia felt the effects of the country’s conflict with Ukraine and declined somewhat compared with the record levels achieved in 2013. In Western Europe, Germany displayed a positive trend, partly driven by environmental investments in the marine industry."