FLSmidth increases cement order intake by 8% in 2Q22

FLSmidth’s cement order intake increased eight per cent organically in the 2Q22, as a result of improved underlying performance and improved market conditions. The quarter included one large product order, valued at more than DKK400m (US$54.28m). Consolidated group order intake advanced 20 per cent organically with currency tailwinds supporting order intake in the quarter by eight per cent. 

Cement revenue increased 12 per cent organically, driven mainly by the increase in service revenue. Cement EBITA continued the positive trend and was up to DKK31m in the 2Q22 compared to DKK-34m in the 2Q21.  

Cement EBITA margin was positive at 2.1 per cent, compared to -2.7 per cent in the 2Q21, driven by higher revenue in the quarter and improvements from the successfully executed reshaping activities in 2021.

Consolidated organic revenue increased 17 per cent, driven primarily by mining. Gross profit increased by 22 per cent, with the corresponding gross margin decreasing slightly from 25 to 24.7 per cent. 

EBITA increased by 56 per cent and the corresponding EBITA margin increased to 6.1 per cent from 4.8 per cent in the 2Q21. Adjusted for the costs related to the wind-down of the company's Russian activities and to the acquisition of thyssenkrupp’s Mining business, the EBITA margin was eight per cent in the 2Q22.

Group CEO, Mikko Keto, commented: “Cement continued its positive trajectory on improving profitability. The increased revenue and EBITA was despite inflationary pressure, supply chain challenges and costs related to our ongoing wind-down of Russian activities.”

FLSmidth’s mining order intake increased 26 per cent organically in the 2Q22, as a result of improved service activity compared to he 2Q21. The quarter included one large product order, valued at around DKK270m.