FLSmidth has published its 1Q16 financial results, with the main conclusions as follows:
1Q was typically weak. Revenue declined 20% due to very low activity in January, and this was not compensated for in February and March. Divisional gross margins were generally holding up, whereas EBITA margins were negatively impacted by low operational leverage caused by the revenue shortfall. Both net working capital and net interest bearing debt decreased in the quarter. Order intake increased 19% following the receipt of a large cement order.
- The order intake increased 19% to DKK 5281 million.
- The order backlog increased 6% to DKK 15 792 million.
- Revenue decreased 20% to DKK 3758 million.
- The gross profit decreased 13% to DKK 1038 million, corresponding to a gross margin of 27.6%.
- Earnings before amortisation and impairment of intangible assets (EBITA) decreased 39% to DKK 246 million, corresponding to an EBITA margin of 6.5%.
- Earnings before interest and tax (EBIT) decreased 48% to DKK 153 million, corresponding to an EBIT margin of 4.1%.
- Net profit decreased 73% to DKK 73 million, of which DKK -6 million were related to discontinued activities.
- Cash flow from operating activities amounted to DKK -60 million of which DKK 95 million were related to continuing activities.
- Net interest-bearing debt decreased to DKK -3567 million.
- Net working capital decreased to DKK 2410 million.
- Return on Capital Employed (ROCE) decreased to 9%.
- Order intake related to total service activities decreased 8%, but increased 3% sequentially, accounting for 44% of Group order intake.
- Revenue related to total service activities decreased 9%, accounting for 62% of Group revenue.
Edited from press release by Angharad Lock
Read the article online at: https://www.worldcement.com/europe-cis/19052016/flsmidth-releases-1q16-report-69/