Swedish engineering group Alfa Laval published its Interim report for the time-frame between April 1 and June 30, 2019, highlighting that its order intake was down due to ‘weak demand’ for pumping systems and scrubbers.
Specifically, the company stated that their orders decreased by 20% during the second quarter to 10.0 billion crowns ($1.07 billion).
In the meantime, the net sales increased by 8% to SEK 11,339 million and adjusted EBITA was up 10% at SEK 1,870 million.
In light of the above, Tom Erixon, President and CEO of Alfa Laval stated
The Group’s order intake was affected by a weak demand for pumping systems and scrubbers. Low contracting for new tankers during the first six months burdened the order intake for pumping systems, as opposed to the relatively high level during last year.
He continued that at the same time the scrubber market expected to be weaker during the quarter, due to the approaching 2020 sulphur cap.
Yet, despite the decrease Mr Erixon highlighted that the company’s perception of the scrubber technology and the market as a whole has, in a longer perspective, not changed.
Alfa Laval expects that the demand in the third quarter will be a bit higher, in comparison to the second quarter.