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FLSmidth reports weaker order intake in FY14

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World Cement,

FLSmidth has reported its financial results for FY14, which show a weakened order intake and order backlog. The company reports that revenue and earnings were in line with Group guidance, and that record high revenue was achieved in Customer Services.

FLSmidth’s order intake was down 15% at DKK17 761 million, while the order backlog fell 15% to DKK19 017 million. Earnings before amortisation and impairment of intangible assets (EBITA) increased 56% to DKK1627 million, while earnings before interest and tax reached DKK1220 million, up from negative DKK270 million in 2013. Cash flow from operating activities amounted to DKK1298 million and profit for the year reached DKK813 million. Net interest-bearing debt was DKK4499 million, an improvement from 2013’s DKK4718 million.

In 4Q14, geopolitical uncertainty contributed to a 33% fall in order intake to DKK3775 million and revenue decreased 16% to DKK5911 million. However, EBITDA increased 63% to DKK483 million, corresponding to an EBITDA margin of 8.2%. EBITDA was up at DKK400 million and EBIT increased 187% to DKK255 million. Gross profit was slightly down at DKK1282 million. Cash flow from operating activities hit DKK739 million, up from DKK77 million in 4Q13.

FLSmidth listed the following long-term financial targets for its four new divisions: 

Growth (over the cycle)

  • Customer Services 5 – 10%
  • Product Companies 5 – 10%
  • Minerals 5 – 6%
  • Cement 3 – 5%

EBITA% (over the cycle)

  • Customer Services;15%
  • Product Companies 12 – 15%
  • Minerals 3 – 8%
  • Cement 3 – 8%

Net working capital as pct. of revenue

  • Customer Services 15 – 20%
  • Product Companies ~15%
  • Minerals Negative
  • Cement Negative

Adapted from press release by

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