FLSmidth lowers 2011 world cement capacity outlook
FLSmidth on Thursday cut its full-year 2011 expectation for world cement capacity growth and narrowed its revenue outlook slightly towards the upper end of an earlier range.
FLSmidth reported a fall in third-quarter operating profit hurt by weaker profit and sales in its cement division, but helped by higher profits and sales in its minerals machinery business.
The group said it now expects the cement market in 2011 to grow by about 55Mt of new contracted cement kiln capacity worldwide, excluding China, against an earlier forecast 65Mt.
Cement activity remained high in a number of emerging markets, particularly in Russia, South America, Africa and Asia it said.
"Due to a temporary growth pause in India, however, the forecast for the global market for new contracted cement kiln capacity (exclusive of China) has been revised downwards," FLSmidth said.
Also unrest in North Africa had put a damper on cement consumption and investments in the region, negatively affecting the business and order intake in the first nine months of the year, the company said in the statement.
The group’s operating profit fell to DKK592m in the third quarter from DKK617m a year earlier. Revenue rose to DKK5.5bn from DKK5.3bn.
The company has slightly narrowed its outlook for 2011 consolidated revenue to a range of DKK21.5bn to DKK22bn from an earlier range of DKK21-22bn.
It repeated guidance for a margin on EBIT of 9-10 per cent after reporting a fall in nine-month profits in line with forecasts.
Published under Cement News
