Alfa Laval to log $18 mln restructuring charge in Q4 as it revamps marine, energy units

Alfa Laval is restructuring its energy and marine divisions, affecting around 500 jobs, to adjust capacity imbalances in the supply organisation, the Swedish engineering group said on Tuesday.

The restructuring will lead to a charge of 200 million Swedish crowns ($18 million) in the fourth quarter, the company said.

"The initiated restructuring program is addressing the known weaknesses in demand," Chief Executive Tom Erixon said in a statement.


The number of affected employees includes the continued wind-down of operations in Russia, he added.

The company had earlier announced it would reduce personnel in Russia to 85 by the end of October, from about 230 employees before the war.

Alfa Laval employed 5,231 people at the end of the third quarter of 2022.

The group received record-high orders of 15.20 billion crowns in the quarter, beating analysts' average estimate of 13.83 billion crowns in a Refinitiv poll.

The company, whose products include heat exchangers, pumps and filters, also said it expected demand in the final three months of the year to remain level with the third quarter.

However, the marine unit's quarterly operating income fell 41% from a year earlier, hit by weak tanker market in 2022 and soaring material costs. ($1 = 11.1695 Swedish crowns)