FLSmidth suspends financial guidance for 2020

FLSmidth suspends financial guidance for 2020
25 March 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.

Published under Cement News