FLSmidth reports upward adjustment in expectations for 2010

FLSmidth reports upward adjustment in expectations for 2010
Published: 19 August 2010

FLSmidth’s interim report for the period 1 January - 30 June 2010 states a sharp increase in order intake and upward adjustment of expectations for 2010.

The order intake increased 127 per cent to DKK 12,716m (first half of 2009: DKK 5,611m), while the order backlog increased 26 per cent to DKK 26,621m since the turn of the year (end of 2009: DKK 21,194m).

Revenue decreased 13 per cent to DKK 9413m (1H09: DKK 10,766m) and earnings before interest, tax, depreciation and amortisation (EBITDA) decreased 13 per cent to DKK 1,047m (1H09
DKK 1,205m) corresponding to an EBITDA ratio of 11.1 per cent (1H09: 11.2 per cent).

Earnings before interest and tax (EBIT) decreased 18 per cent to DKK 837m (1H09: DKK 1,022m) corresponding to an EBIT ratio of 8.9 per cent (1H09: 9.5 per cent). Earnings before tax (EBT) decreased 28 per cent to DKK 710m (1H09: DKK 988m).

Profit for the period decreased 46 per cent to DKK 491m (1H09: DKK 904m), but cash flow from operating activities increased 21 per cent to DKK 736m (first half of 2009: DKK 608m). Net interest-bearing receivables by the end of the 1H10 amounted to DKK 1,390m (end of 2009: DKK 1,085m)

The expectations for the cement market in 2010 remain unchanged at 50Mta new contracted cement kiln capacity worldwide (exclusive of China). FLSmidth & Co upgrades its expectations for consolidated revenue in 2010 to DKK 20-21bn (previous expectation DKK 19-20bn) and maintains the expectation for the EBIT ratio at approximately 8-9 per cent.