Stockholm - Swedish engineering group Alfa Laval reported on Wednesday a fall in quarterly order intake, hit by weaker than expected demand for ship exhaust cleaners, sending its shares sharply lower. The maker of machinery such as heat exchangers, separators and ballast water treatment equipment said order intake decreased by 20% during the second quarter to 10.0 billion crowns ($1.07 billion).
Demand for so-called scrubbers which strip out sulphur from marine fuel has boosted the engineering group as well as Wartsila in the past few years as shipowners prepared for stricter sulphur emissions regulations from next year. Chief Executive Tom Erixon forecast higher sequential demand for Alfa’s marine unit as well the overall group and said he remained confident about future prospects. “Our underlying view on the scrubber market and view on the technology has not changed,” said Erixon. “All indications are that the market will maybe grow a little bigger over time... than we had expected.”