WRTBY - Alfa Laval Managing Costs Well But Sector Exposures Are A Concern
For a company with what would otherwise be looked at as undesirable end-market leverage, Alfa Laval (ALFVY) shares have been surprisingly strong, rising 15% over the last three months and falling about 12% year-to-date, keeping pace with the broader industrial group. Management's strong execution on cost reduction is certainly helping, but with Alfa Laval heavily leveraged to end-markets like ship building, oil/gas, and petrochemicals (around 50% to 60% of revenue) that are likely to be lower for longer, I find that performance pretty interesting.
Make no mistake - I still think Alfa Laval