Good morning and most welcome to our presentation. And I will start by giving you my 3 highlights. First of all, I'm pleased that the order intake stabilized and was unchanged compared to the previous quarter. Further, we expect the Q1 to be on about the same level. The second highlight is that we continue to deliver on the savings program initiated end 2011.
Sales and admin cost was down 11.5% year on year. And finally, in 2012, we completed 4 acquisitions that adds SEK1 billion in annualized sales growth corresponding to 3.5% which is fully in line with our targets. Let's move over and take a look at the key figures. In the quarter, orders received rose 7% to SEK 7,300,000,000 and net sales was unchanged at 8,100,000,000 and adjusted EBITA declined 5% to SEK1.3 billion and adjusted EBITA margin reached 16.2% versus 17% a year ago. For the full year, orders rose 6% to the new record level of €30,300,000,000 Net sales increased 4% to the new record €29,800,000,000 And adjusted EBITA declined 7% to SEK 4,900,000,000 and adjusted EBITA margin reached 16.5%.
On the next slide, you see that the Board proposes a dividend of SEK3.5, an increase of 8%. A mandate to buy back up to 5% of the number of outstanding shares is also proposed with the intention to cancel the shares. Now we move over to orders received. And there we see that orders received on rolling 12 months increased to SEK 30,300,000,000. The increase in order intake was 11% year on year at constant exchange rates.
And you can see that after the drop in the 3rd quarter, we have stabilized. Now we move over to the next slide. And then from the order analysis, you find that year on year acquisitions contribute with 1.8 percentage unit and organic growth was 8.9%. We had negative currency effects of 3.6%. Sequentially, acquisitions contributed with 0.2% and organic growth was minus 1.4%.
The positive currency effect was 0.7% giving a grand total of minus 0.5%. Next slide. There we see that the EBITA margin reached 16.2%, which is a decline year on year and the operating result was SEK 1,300,000,000 Moving over to highlights. In 2012, we reached all time high in large orders in excess of €2,500,000,000 The vast majority were energy related, a substantial portion were environment related and some came from the food and pharma area. On the next slide, you see the distribution in value between the regions is healthy and well balanced.
Asia, of course, being biggest, followed by North America and Central and Eastern Europe, which in fact is Russia. Moving over to the next slide, you see that in 2012, we completed 4 acquisitions that added 3.5 percent annualized sales growth. We have Vortex, a niche company selling blending and mixing solutions to the oil and gas industry Ashbrook selling belt filter presses for sludge dewatering as an alternative to Alfa Laval's decanters Gamayet, a niche company selling tank cleaning machines and Ace that is widening our product portfolio for the North American natural gas and other related markets, other energy related markets. On the next slide, we see ACE that we acquired in December. They supply air cooled heat exchangers that are used at the field compression stations for the gas gathering system that is typically used for shale gas.
Now we shift over to the Development Perks segment. We see that year on year in the quarter the vast majority of the segments have increased. But we quickly shift over and take a closer look at the divisions on the next slide. Please note that all comments are sequential. We start with the equipment division where order intake was unchanged.
Sanitary rose with good demand for all applications. Industrial equipment declined partly due to seasonality, partly because of non repeat of a non repeat launch order. OEM grew mainly driven by customers making air conditioning and air dryer products. And parts and service dropped somewhat reflecting lower demand in HVAC. Next slide.
In the Process Technology division, order intake was also unchanged. Food grew supported by best business and vegetable oil projects in Asia. Energy and environment declined as there were fewer large oil and gas contracts. Process Industry recorded growth with a positive development for refinery and life science and parts and service grew as well. Next slide.
The Marine and Diesel division declined somewhat since the growth in parts and service could not fully compensate for the weaker capital sales. The equipment declined due to lower demand for land based diesel power. However, it is positive that base business showed a slight increase. Systems declined reflecting the contracting at the yards earlier in the year. We are very pleased that the first commercial pure socks order was booked and we expect more orders during the first half of the year.
And parts and service rose mainly due to good repair activity. Next slide. Since Marine and Diesel Division is new, we will take a look at orders received for the full year 2012. 41% came from shipbuilding and offshore, 6% came from environmental solutions, 13% from land based diesel power and 40% from parts and service. Next slide.
For the full year, Process Technology has had a very good development driven by Process Industry and Energy and Environment. Equipment division had a good year with sanitary growing significantly and parts and service grew as well. And the Marine and Diesel division has had a challenging year for capital sales, but parts and service has held up well. And now we move over to the geographical developments. Order intake in the quarter shows that year on year Western Europe has grown with 25%, followed by North America with 16% and Asia with 13%.
The decline in Central and Eastern Europe is due to non repeat large orders in Russia. We move on and take a closer look at Asia And now all comments are sequential. We grew 6% with process industry, food and OEM performing the best. China was affected by wait and in Western Europe and Nordic, we can see that both delivered 12% growth. And we had a favorite development for large orders, base business and parts and service.
And almost all geographical areas reported growth. In Central and Eastern Europe, the weak development was due to fewer big orders being booked in Russia. But our positive view on Russia remains since base business was unchanged and the general activity level was positive. We move on to the next slide. North America declined 2%, where the U.
S. Continued to grow while Canada declined due to fewer large projects. And we were pleased to see base business growing. Sanitary Food and Parts and Service had a positive development. Latin America declined 12% since fewer large orders were booked.
Base business was growing, especially in Marine and Process Technology division. Now we move on to the top 10 ranking. Yellow bar is 2012 and green is 2011. Here you see that the U. S.
Has strengthened its number one position and we maintain a positive view on the U. S. The decline in China is related to Marine, but excluding Marine, we had modest growth. Nordic and Korea have continued their good development. Mid Europe declined due to non repeat large orders and generally weaker demand.
Southeast Asia continued to grow and is in a positive trend. Adriatic was unchanged, which is an achievement in itself. Russia delivered broad based growth and did a great year. We maintain our positive view. And in Brazil, Petrobras continues to invest and India declined despite a strong recovery in the 4th quarter.
For the full year on the next slide, for the full year, we see that all regions except Asia grew about 10%, Asia being affected by marine. In the pie chart, we see our good geographical mix with 48% coming from Asia, Central and Eastern Europe and Latin America. We are also pleased that 19% comes from North America. And now we enter into the financials. And there I hand over to Thomas.
Okay. Good morning all of you. So then let's look a bit more into the details of the financials. Let's move into the presentation slides. As Lars has covered the orders received situation and development, let me give you a few comments on sales.
In the quarter, we realized sales of 8 €100,000,000 And let me confirm that this was exactly according to our own expectations. The shortfall that I commented on after quarter 3 was recovered in quarter 4. Sales was up organically 8.7% over quarter 4 of 2011 and then acquisitions added 1.7% to sales in the quarter. In absolute terms, we were on the same level as last year. Sequentially, sales was up almost 14% on a like for like basis, which is entirely due to seasonality.
Parts and service represented 25.8% of revenues in the quarter against 25.2% in the same quarter of 2011, so a slight increase. Comparing to the 1st 3 quarters of 2012, we're down from approximately 27% to the 25.8%. So an adverse mix effect in that sense. Moving on to the next slide, a few comments on gross profit margin. Gross profit margin for the quarter ended 37%, exactly the same level as in quarter 4 as in quarter 3 and against quarter 4 of 2011 where we generated 37.8 percent.
Let me remind you that with the 3rd quarter report, I said the following as a forward looking statement. We expect a relative increase of capital sales to have an adverse effect on gross profit margin. We do not foresee any price effects. As far as load is concerned, it is dependent on inflow of short lead time orders. I would argue that the actual for quarter 4 came out precisely as we predicted.
Sequentially, we were suffering from a limited adverse mix effect and for the rest the main parameters came out as quarter 3 all marginally better. Year on year, we were suffering from adverse mix effect adverse FX effects, a price mix change primarily in marine as well as cost accounting adjustments in all boy. However, the factory load had a positive effect year on year. Let me then give you a first forward looking statement. In the near term, we expect a relative reduction of capital sales to have a somewhat positive effect on gross profit margin.
We do not foresee any material price effects. And as far as load is concerned, we do not envisage any major effects or any major shifts. Moving on to the next slide. Looking at overhead costs, we can report the following. R and D ended at €209,000,000 in the quarter which is an increase year on year.
For the full year, we've seen R and D increase 7.6 percent like for like. And I think again this is a very strong commitment to the future, a continued development of new products and solutions. The R and D spend represented 2.4% of sales on a full year basis. Moving on to sales and admin. Sales and admin amounted to about €1,350,000,000 in the quarter and that in itself represented a reduction like for like year on year of 11.5%.
The savings program we launched at the end of 2011 is generating the effects anticipated. The outcome in quarter 4 effectively means a saving of approximately €100,000,000 over last year. As a consequence, we have delivered the savings of a couple of $100,000,000 as communicated with the quarter 4 report of 2011. The gross margin and the development of the overheads gave us then an EBITA margin for the quarter of 16.2%. Following the restructuring and partly disposal of the Onurio activities in Korea, we have a one off charge of €51,000,000 to EBIT in the quarter.
Looking at profit before tax, it was again influenced by positive exchange differences in absolute terms some 25,000,000 however, nowhere near the positive €223,000,000 that we were enjoying in quarter 4 of 2011. Profit before tax was falling from above almost SEK1.15 billion in the quarter, a decline of 17% over last year and that then largely explained by FX in the financial net. Before leaving the profit and loss account, taxes ended with a charge of €246,000,000 or 21 percent of profit before tax. This includes a one off positive effect of SEK99 million which is coming from the reduction in corporate income taxes is in Sweden. So a €99,000,000 positive effect from adjusting deferred tax assets on adjustments.
Our guidance for taxes remains 28%
on profit before tax.
EPS for the year is €7.61 almost on the level of 2011 where we had €7.68 percent. If we exclude step up, we're at €839,000,000 against €842,000,000 last year, so same level basically. Return on capital employed 26.1 percent say about the same level as quarter 3. Return on equity 21.6 percent just below the level of quarter 3. Let's then move on to cash flow.
We can summarize the year in terms of cash flows as follows. We have generated an increase in cash flow from operations to the tune of 5%. That is despite lower EBITDA and bigger tax payments. But thanks to less of an increase in working Moving on down the cash flow account. Acquisitions accounted for SEK 2,800,000,000 of cash outflows.
The delisting in India in itself involved a cash out of some SEK830 1,000,000 and then a cash out of almost SEK 2,000,000,000 related mainly to the 4 new acquisitions that Lars commented on before. For the full year, we generated a free cash flow that is before dividends and acquisitions of just above $3,000,000,000 and just above the free cash flow of 20.11. In quarter 4, cash flow was generated of 712 against 963 in 11, which is largely explained by an increase in working capital. I think to summarize cash flow for 2012, it's fair to say that in Alfa Laval we've enjoyed another good year in terms of cash generation. Moving on to FX.
We had a negative €63,000,000 in the quarter coming from both translation and transaction. This is an outcome slightly better than our estimate after quarter 3. If we look into the future for 2013, we anticipate a net FX effect of a negative €114,000,000 This is mainly then expected to come from translation effects. Applying the closing rates as per December 31, 2012, our P and L account would generate an adverse €120,000,000 of translation. This is a deterioration compared to earlier projections for 2013.
And this deterioration is basically down to the weakening of the U. S. Dollars in the past 2 months. Moving on to the backlog. We had a total order backlog as per end of December of almost 14.5 $1,000,000,000 This was representing 5.8 months of LTM sales.
End of 2011, we had almost the same level of backlog in relation to LTM sales. Looking at the backlog development by division, you will find an increase in process technology and equipment and a reduction in marine and diesel. Looking at the order backlog to be shipped during 2013, it amounted to €11,600,000,000 If we exclude acquisitions made in 2012, like for like, this means a slight reduction from end of 2011 to end of 2012 for shipment in the coming year to the tune of some €100,000,000 Please remember that. Move on let's move on to the next slide. And before I get into the sales bridge from 2012 to 2013, let me share with you the development of orders received in recent quarters.
I think the trend over the last four quarters, the quarters in 2012, It's important to have this in mind when you assess 2013 for orders as well as sales. On top of the actuals in 2012, Please note that we estimate ACE the acquisition made at the very end of 2012 will add roughly €100,000,000 of volume per quarter. However, applying the closing rates as I just commented on, orders and sales will have an adverse translation effect of approximately €150,000,000 per quarter. I think it's important that you have this slide in mind when you evaluate your orders and sales forecasts for 2013. And with that, let's take a look at the sales bridge or the summary of known and unknown parameters for projecting full year sales for 2013.
As I just mentioned, like for like the backlog will give reduced sales of about €100,000,000 for 2013. Based on closing exchange rates, we will have an adverse translation effect of some €600,000,000 The 4 new acquisitions on top of what they've given us in 2011, we estimate that they will give an additional $700,000,000 in 2013. So this gives a subtotal for the known parameters of €29,800,000,000 As always, it's up to you to form an opinion about demand. But please consider our outlook and then the order trend over 2012 as I just showed you when you assess your estimate. Finally, with regard to prices, let me just inform you that we've adjusted prices as we typically do as per the beginning of the year.
These adjustments have been very limited and obviously only for list price based products. And with that, I give the word back to Lars for the
demand during the first quarter 2013 will be on about the same level as in the 4th quarter. And for each division, our demand expectation for the Q1 is as follows. Process Technology, we expect to be on about the same level. Equipment division somewhat lower due to non repeat contract orders in sanitary. And finally, marine and diesel somewhat higher as capital sales is expected to recover slightly for land based diesel power and marine and offshore systems.
And that completes our presentation. And now we hand over to Emily for the Q and A session.
Thank Your first question today comes from Ben Mafflin of the Bank of America. Please ask your question.
Thank you. Good morning, Lars. Good morning, Thomas. A few questions, please. Firstly, just on the financial net line, which has been positive for a couple of quarters.
Can you just remind us why that is? And any guidance you can give us for 13% as what is a reasonable underlying rate? That's the first one. Secondly, just on IAS 19 and the new pension accounting standard, is there any change you expect to your either your liability or interest charge coming out of that? And then finally Lars on the savings program from 11, can you give us a number of what savings you achieved overall in 2012?
What is left to be realized? And then whether you think you need to do any more to balance the decline of capital sales in Marine? Thank you.
Okay, Ben. Let's start off with financial net then. If we look at the financial net, we were enjoying positive exchange differences to the tune of €260,000,000 almost out of which 80% were actually realized FX differences and only the remaining 20 being unrealized. The interest net, which is really what we can predict, you have to anticipate an interest net of a negative €35,000,000 to €40,000,000 per quarter. Moving on to IAS 19.
Well, yes, you're right. There is a change in how to account for defined benefit pension liabilities or post retirement benefits. It will be accounted for in the other comprehensive income of the P and L statement and no longer the corridor method will be applied. We do not have a number at this juncture, a final number at this juncture. We're still waiting for actuarial assessments.
But with the annual report, you will find details on the effects. But we do not see any effects obviously in the regular part of the P and L account. It will create some fluctuations in equity through other comprehensive income. Then moving on to the savings program, we did generate well above the €200,000,000 of like for like savings in 2012 as we committed to. And we have remaining effect to have sort of the annualized effect of measures taken to kick into the P and L in 2013 to the tune of €80,000,000 to €100,000,000
Great. Okay. And then just sort of the second part of that question. If I think Lars you said you thought Marine Capital sales would go up, but I guess there's still quite a big gap between your orders and sales. If we don't see a kind of bigger pickup in marine capital sales this year, do you need to do any more restructuring in that business to kind of deal with the cost base?
Well, when it comes to capital sales in Marine, we believe that we have reached the bottom and we will not see any recovery during 2013 since there is a lag of 6 to 9 months between contracting at the yards and the time when we see it in our order books.
But you don't need to do anything on the cost side then?
On the cost side we are
Ben, if I may remind you of what I said at our Capital Markets Day, I said that we are adjusting capacity when it comes to production of boilers. We have implemented parts of that during the second half of twenty twelve. And there is still a bit more to be implemented during 2013. For the rest, remember that we have an integrated operation setup covering production for all of the 3 divisions. We do not have separate manufacturing locations for the individual divisions with the exception of boilers in the all boy setup.
Got it.
Thanks. Thanks. Apart from that nothing.
Thanks a lot Thomas. Thank you.
Your next question comes from Peter Frohnlein of Handelsbank Capital Markets Stockholm. Please ask your question.
Yes. Good morning, everybody, and thank you for that. You mentioned the parts and service orders were up around 4% sequentially and that was more linked to the process industry and the marine side. Maybe you could help us out here if there are any seasonal effects within those 2 sub segments that are of magnitude or that this reflect under that line demand Or thirdly, just a function of the installed base? That's sort of my first question.
And the second question, Thomas or Lars, if you please could update the split between shipbuilding and offshore within marine. You gave an update on the Capital Markets Day for 2011. Now we have the 4% to 1% for the 2 sub segments combined for 2012. And finally on prices, you mentioned a very limited list price increase in the beginning of the year. Could you please remind us of the magnitude sort of last year and the years before that to get the relative fill?
And maybe a comment on why it's marginal? I think everybody understands that, but still that's it for me. Thank you.
First when it comes to parts and service, there were no seasonal effects in parts and service. And when it comes to the 41% that we have in shipbuilding and offshore 90% is shipbuilding 10% is offshore out of those 41%. And then the final question was? Limited increases, how are they versus 2020? Yes.
Well, they are it's very obvious that it's limited increases and it's for price list based sales and it's significantly
less than 5%. And it's in line with what we've done in 2011 and 2012, I would say.
Yes. Okay. I think that's the most important thing. Okay. Thank you.
That's it for me.
Thank you.
Your next question comes from Sven Weier of UBS Frankfurt. Please ask your question.
Yes, good morning. A couple of questions from my side. First one is on Process Technology margins, which were at the low point in Q4. Is it fair to say that you turned some of the big tickets from 11 with a wide scope of supply into revenue in Q4. So you had a, let's say, an unfavorable big ticket mix that you booked in Q4 as revenues.
And also associated to that question, if you generally look at the structure of your big tickets probably going into more narrow scope of supply, would you think that this is giving you some margin tailwind for 2013? And then a question on marine and diesel and I'm sorry if you mentioned that before, but can you give us some color on why the margins marine and diesel quite substantially, sequentially? What did have an impact on these margins? Thank you.
Okay. If we start then with the PTD margins, yes, we did have a larger content of capital sales and then larger wider scope contracts that had an adverse effect on margins. We've enjoyed a very good demand situation in PTD. We've had excellent orders in capital sales in PTD throughout 20 12. And that proposes that we will continue to have a very high level of capital sales of revenues in 2013.
So I can not confirm your expectation of tailwind for 2013. I do not see any difference in margin content in the backlog compared to what we realized during the course of 2012. Then finally on marine and diesel and margins, well, we've seen again a positive mix effect from more of the aftermarket revenue with declining sales in marine and diesel and that's really the bulk. Then of course adjustments of course and capacities is having a role here as well.
Maybe one final follow-up question on the diesel business. Obviously, Wartsila has having quite a number of huge tickets. Is it that these orders have been not placed yet with their suppliers? And is that penciling in with your Q1 guidance on an uptick in that business? Or can you give us some more color on that please?
Yes. So that's I mean Wartsila and M1 are 2 important customers from us. And we see with the orders they've had coming in, we expect that we will benefit from that in the Q1. So that's the reason for the uptick. Perfect.
Thank you.
Your next question comes from Jon Hiltner of Handelsbanken Capital Stockholm. Please ask your
Thank you and good morning. Can you hear me?
Yes, Andrew. Perfect.
Great. I have three questions. Firstly, on the oil and gas segment, you mentioned a slight decline here in Q4. I wonder if you could give us some more flavor of the more longer term trend there and your expectations for this year perhaps? Then secondly, on your products in Marine Environmental segment, pure socks, pure dry, etcetera.
You gave us some good examples on the Capital Markets Day. Maybe we could get an update marine and diesel, How is activity here? And can you say anything about the outlook for this particular segment? If you believe that the shipping companies will continue to maintain their ships?
Okay. So the first one, oil and gas, it's still a high activity level. We didn't book so many large orders in the 4th quarter. And but we continue to be quite optimistic about oil and gas. We see a high activity level, a high tendering activity.
And perhaps a bit fewer of the very large contracts. But all in all, we are very optimistic about oil and gas and it is a high priority area for Alfa Laval to increase our presence and penetration in that customer segment. For instance, the acquisition of ACE that we completed at the end of last year. And then when it comes to the environmental solutions in marine and diesel, pure SOX. There we booked our first commercial order about €6,000,000 in December.
And we see a good activity level. We have many outstanding quotations and we are increasing our internal resources. And we expect orders to come in during the first half of twenty thirteen. And we see an increasing acceptance for the SOX solution. And when it comes to pure NOx, there we also could book our we also booked our first order in 2,000 December 2012, which we also communicated in a press release.
So we see that if things are gradually ramping up. And then finally, when it comes to parts and service, that you can say parts and service for equipment that has been stable during the year and that we see as a good sign. The ships are still sailing. They are still maintaining them. And when it comes to parts and service for systems there we have seen a growing order intake since we've had more of repair jobs very much on board offshore platforms.
So all in all, we expect a positive trend for parts and service when we combine those 2.
Very good. Thank you for that. Just a quick follow-up on the pure dry. You mentioned that you were hoping to sell 100 units 2013. Does this still stand at this point?
We hope to book orders for that amount. And for the time being,
we have selected a number of important customers where we are supplying these units to for them to evaluate. So our positive view on PureSOx remains and we can see that our customers are very excited.
Okay. Thank you very much.
Thank you.
Your next question comes from Martin Przyzewski of Sanford Bernstein London. Please ask your question.
Good morning, everyone. I've got 2 questions please. The first on the Process Technology, just the margin deterioration there. I know in the release you said it was mix and large orders. Can you give us a bit more color on the margin progression there?
How much of it was loading related? And how that is likely to develop given the good order intake that we've seen now in Process Technology? Just how long dated is that backlog on the orders that came in? And then second on the increased dividend and the 5% buyback, given that free cash flow this year was weaker than the last few years at around my number says around $3,000,000,000 for the year. Net debt is now net debt to EBITDA is now close to 1 times.
Does this signal that there'll be fewer acquisitions in kind of the immediate short term and that there's more of a focus on cash return to shareholders?
To begin with Prostate Technology Division and margins, as I commented on an earlier question, we had an increased part of capital sales. We will continue to have a further increase we believe based on current demand outlook of capital sales in 2013. So from that perspective, the situation will be more sort of the same as we've seen during the latter part of 2012. Generally, I or when it comes to the outlook for margins, I do not provide any more detail than what I mentioned to begin with in my presentation. For quarter 1, for the short term, we anticipate a rest, we have no further major variations foreseen.
Then when it comes to dividends, well debt to EBITDA was 0.8 at the end of 2012. So still I would argue well below 1 and far from any parameters defined by our lending banks obviously. Then Lars commented on acquisitions and confirmed that we will continue to make complementary acquisitions during 2013. So there is no change when it comes to the use of cash in 2013.
Thank you. Just one follow-up on the margin. I appreciate the guidance can't be more detailed. But just if I look year on year 600 basis points down on the 21.1% from Q4 2011. I'm not I'm more interested in understanding the effects that drove that more than the specific guidance.
Is that if you're not seeing that the margin mix within between projects are quite extreme the variance that we see between projects?
Well, if I take if I list out one company that had an effect on net margins in 2011. They've had an effect on gross margins for 2012. If we look at the Olmi company in Italy, they've doubled sales, but gross margins are lower substantially lower. If we look at net margins, we have enjoyed a turnaround from a fairly substantial negative number to a slight positive number during the course of 2012. So I think that's really well done.
But we've had an adverse mix effect in gross margin from the fact that they've doubled sales.
Thank you.
Thank you. Your next question comes from Andre Kukhnin of CS London. Please ask your question.
Hi, good morning. It's Andre from Credit Suisse. A couple of questions please. One is on internal inflation, raw materials and labor. Firstly, what you're looking for in terms of raw materials?
And secondly, on labor, I remember a year ago, we were talking a lot about emerging markets labor inflation. So where are we now? And if you could wrap that also sort of in relation to the price increase that you're pushing through, would that be enough to offset any of these pressures?
Okay. Looking at raw materials, if we look at the development up until I would say the beginning of December, we were looking at sort of a downward trend for the alloys. And we were looking at a stable situation when it comes to say the core price component for stainless steel. In recent weeks, we've seen quite a substantial increase in alloys. So that will of course have an adverse effect if that continues or if that remains.
As far as labor inflation is concerned, of course, we have to work on productivity to cover for labor inflation. And of course, we are making our best efforts to compensate ourselves with price adjustments. So absolutely, our ambition as it has been always is to at least compensate for these kinds of parameters.
Very clear. Thank you. And just a broader question. In Process Tech and Equipment divisions, during 2012, do you think you took market share or stayed broadly in line with the market or lost share? These are kind of businesses that are hard to track for us.
We are in such a variety of business. But I would say in most businesses, we kept market share. And for some applications and for some products, we definitely took market share.
Great. And the final question. You mentioned negative costing effect from Albo in 2012. Could you quantify that? And is there any other kind of those type of sort of non repeat small effects that were there in 2012 adjusted EBITA?
Well, if we look at the accounting all boy, they had only an effect between overheads and cost of goods. No effect on EBITDA or EBITDA as such. It's merely a matter of applying fully loaded costing on our products instead of a more like contribution kind of approach that was applied previously in Oldboy.
Got it. Thank you very much.
We have another question from John Hiltner of Handelsbanken Stockholm. Please ask your question.
Yes. Just a quick follow-up on your production level and inventories. I just noted that your inventories are down sequentially and your sales of course seasonally are up. Have you run your production on a normal rate? Or have you produced less in the quarter to just deliberately take down inventories?
And if so, does that have any impact on profitability?
To begin with, remember that the bulk of our business is manufacturer to order. So it's not manufacturer to inventory. That's very important to remember. Then when it comes to factory load, we've had an increase in load quarter 4 over quarter 4 of 2011. Still, we do have in most areas still a substantial additional capacity.
Very few exceptions where we are running at peak load, but better year on year and a load comparable to quarter 3. We did not make any particular say adjustments, year end adjustments in the way we were producing or adjusting inventories. No. Only the effects of a sort of long Christmas and New Year holiday.
Yes. Perfect. Very good to know. That's very clear. Thank you.
We have no further questions at this time. Mr. Renstrom, please continue.
Well, I want to thank all your listeners for your contribution and wishing you a continued good day. Thank you all of you.
That does conclude our conference for today. Thank you all for participating. You may now disconnect.