FLSmidth suspends financial guidance for 2020

FLSmidth has suspended its financial guidance for 2020, following the global uncertainty caused by the global COVID-19 pandemic.

"The underlying mining and cement industries remain sound but given the day-to-day development in markets around the world, we are currently unable to assess the extent of the impact," said the company in a statement.

The company is reporting increasing disruptions to customers and its own operations, with higher costs related to more complex logistics and a weaker fixed cost absorption, amongst other aspects. It has taken further actions to manage the cost base, including a hiring freeze, reduced capex spend and postponement of salary adjustments.

The board of directors has also decided to withdraw the proposal to pay a dividend of DKK8 per share to ensure resilience in a period of market uncertainty and to further strengthen its financial position.