Analyst Note| Denise Molina, CFA |
Alfa Laval posted third-quarter results that were slightly weaker than we expected on revenue and still challenged by large exposure to the energy and marine sectors. We have made minor changes to our full-year assumptions but continue to model in a two-year recovery period over 2021 and 2022. Our SEK 200 fair value estimate and wide moat rating remain unchanged, and we see modest upside in the shares at current levels. Revenue came in at EUR 9.7 billion, a 13% organic decline, while order intake declined 9% organically due to lower demand from oil and gas and shipping clients. Adjusted EBITA margin stayed almost flat at 17.6% thanks to the fast cost-savings program implemented by the company. Service activity remained at a lower level than last year due to constraints to access customer sites.