Danish equipment and services supplier FLSmidth has released its Annual Report for the financial year 1 January - 31 December 2013.
2013 was a year marked by pre-emptive management decisions to prepare FLSmidth for the future and to manage the business cycle. Revenue was historically high despite currency headwind, while order intake declined due to the cyclical downturn of mining investments. Profitability and returns were significantly impacted by one-off costs related to management decisions and other issues. Group revenue and EBITA margin delivered as most recently guided.
Results for 4Q13
- Revenue and order intake increased sequentially, but declined compared to 4Q12. Planned costs related to the Efficiency Programme and the Buxton Arbitration Award had an adverse impact on profitability in 4Q13. The underlying EBITA margin stood at 8.7%.
- Order intake decreased 8% y/y to DKK5616 million from DKK6104 million in 4Q12.
- Revenue saw a 12% y/y decline to DKK7420 million from DKK8395 million in 4Q12.
- EBITA fell by 75% y/y to DKK222 million compared to DKK893 million in 4Q12, corresponding to an EBITA margin of 3%, against 10.6% in 4Q12.
- EBITA adjusted for special items amounted to DKK643 million, corresponding to an EBITA margin of 8.7%
- Earnings before interest and tax (EBIT) decreased 92% y/y from DKK797 million in 4Q12 to DKK60 million in 4Q13, corresponding to an EBIT margin of 0.8% (against 9.5% in 4Q12).
- Profit totalled to DKK179 million, down from DKK462 million in 4Q12.
- Cash flow from operating activities amounted to DKK77 million compared to DKK1532 million in 4Q12.
Results for 2013
- Order intake decreased by 25% y/y to DKK20 911 million, against DKK27 727 million in 4Q12.
- The order backlog declined by 24% y/y to DKK22 312 million from DKK29 451 million at the end of 2012.
- Revenue increased by 2% y/y to DKK26 923 million compared to DKK26 284 million in 2012.
- EBITA saw a 62% y/y decrease to DKK977 million from DKK2559 million in 2012, corresponding to an EBITA margin of 3.6%, against 9.7% in 2012.
- EBITA adjusted for special items amounted to DKK2217 million, corresponding to an EBITA margin of 8.2%.
- Earnings before interest and tax (EBIT) amounted to DKK-339 million, compared to DKK2041 million in 2012, corresponding to an EBIT margin of -1.3% (against 7.8% in 2012).
- Profit amounted to DKK-784 million, compared to DKK1303 million in 2012.
- Cash flow from operating activities amounted to DKK-157m, down from DKK1720 million in 2012.
- Net interest-bearing debt amounted to DKK-4718 million, compared to DKK-3084 million at the end of 2012.
- Working capital amounted to DKK2382 million, against DKK1950 million at the end of 2012.
- Return on capital employed (ROCE) declined to 6%, down from 8% in 2012.
Predictions for 2014
- In 2014, the company anticipates consolidated revenue of DKK21 – 24 billion and an EBITA margin of approximately 7 – 9%.
- Cost associated with the Efficiency Programme is expected to amount to approximately DKK-70 million in 2014, which is included in the guidance.
- The return on capital employed (ROCE) is expected to be around 11 – 13% in 2014.
- The effective tax rate is predicted to be between 33 – 35% in 2014.
- Cash flow from investments is anticipated to be around DKK-0.4 billion.
Adapted from press release by Rosalie Starling
Read the article online at: https://www.worldcement.com/europe-cis/13022014/flsmidth_releases_annual_report_for_2013_735/