FLSmidth sees 16% increase in revenue for 2Q19

FLSmidth’s order intake for the second quarter of 2019 reached DKK4.95bn (US$751.5m), a modest decrease of two per cent YoY. Orders included a large cement plant in Morocco and a significant mining order in Australia. The order backlog stood at DKK16.76bn by the end of the quarter, up 16 per cent from the 2Q18.

Revenue increased 16 per cent to DKK5.47bn, attributed to the strong order intake and build-up of order backlog in recent quarters. EBITA advanced 28 per cent to DKK487m, while the margin rose to 8.9 per cent from 8.1 per cent in the year-ago period. Profit surged to DKK223m, compared with DKK168m in the 2Q18.

"The second quarter showed a strong performance with improved revenue and profitability, driven by both Mining and Cement. Following a slow start to the year, we have been successful at converting backlog to revenue in the second quarter. In close cooperation with our customers, we have continued to deliver on our vision to provide sustainable productivity enhancement," said Thomas Schulz, FLSmidth Group CEO.

Cement division
In the cement segment, order intake rose five per cent YoY to DKK1.88bn in the second quarter, including a large order worth DKK335m. Revenue increased 13 per cent to DKK2.25bn from DKK1.99bn. EBITA increased 47 per cent to DKK143m and the corresponding EBITA margin advanced to 6.3 per cent from 4.9 per cent.

"In the second quarter, the cement market showed a stable level of activity for both equipment and services. The market remains very competitive with stable pricing at a low level," said the company in its quarterly report.

In the first six months of the year, order intake surged 29 per cent to DKK4.51bn. Revenue was up seven per cent to DKK4.08bn from DKK3.83bn, while EBITA was relatively stable at DKK212m against DKK213 in the 1H18.