FLSmidth sees order rising

FLSmidth sees order rising
Published: 25 February 2010

FLSmidth has reported a 10 per cent drop in fourth-quarter profit, beating analysts’ expectation. These figures have been attributed to budding market recovery with the company saying orders would pick up in 2010.

October-December earnings before interest and tax (EBIT) fell to 764 million crowns (US$138m), the company said on Thursday.

The result beat all expectations in a Reuters poll which had an average forecast of a DKK539m profit.

Chief Executive Jorgen Huno Rasmussen told Reuters the business had turned a corner in the fourth quarter and he saw "light at the end of the tunnel".

"The level of investments both in the cement and minerals industries is expected to increase in 2010 compared with 2009, but is expected to remain at a lower level than before the global financial crisis," FLSmidth said in a statement.

The company forecast 2010 revenue of DKK19bn to DKK20bn, down from the 2009 level of DKK23.13bn, and guided for an earnings before interest and taxes (EBIT) margin of 8 to 9 per cent in line with its long-term target.