FLSmidth has released its results for 3Q13 and January – September 2013. In 3Q13, revenue remained in line with the corresponding period in 2012, while order intake fell by 42% y/y to DKK4642 million. Profit came in at negative DKK283 million, down from negative DKK28 million in 3Q12.
In the first nine months of 2013, revenue reached DKK19 503 million, up 9% y/y. However, EBITA and EBITA adjusted for special items declined by 55% y/y and 13% y/y, respectively. Order intake for January – September 2013 was also lower than the same period last year, dropping by 29% from DKK21 623 million to DKK15 295 million.
In its guidance for 2013, FLSmidth expects revenue to reach DKK26 – 28 billion, with an EBITA margin of 4 – 5%. On a divisional basis, the Group predicts Customer Services to achieve revenue of DKK7 – 8 billion, Material Handling to bring in DKK4 – 5 billion, Mineral Processing revenue to come in at DKK9 – 10 billion and Cement to reach DKK5 – 6 billion.
FLSmidth’s Cement Division achieved revenue of DKK1385 million in 3Q13. This is 53% higher than in 3Q12, which recorded low revenue of DKK905 million. However, order intake fell by 6%. According to the Group, proposal activity remains either stable or high in markets such as Africa, Middle East, Russia, South America and certain parts of Asia. The market for new projects within the cement industry continues to pose a challenge, particularly in China where there is intense domestic competition and where state approval of new cement capacity projects remains on hold. EBITA declined by 82% y/y with an EBITA margin of 6.1% when adjusted for write-down of inventories and costs relating to the Group’s efficiency programme. FLSmidth expects the Cement Division’s EBITA margin to decrease in 2013, predicting it to be in the range of 5 – 6%, as a result of the poor market conditions following the economic crisis.
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/europe-cis/06112013/flsmidth_releases_3q13_results_384/