Highlights from FLSmidth’s FY11 annual report

FLSmidth & Co. A/S has announced the results of its annual report for the financial year 1 January – 31 December 2011, the highlights of which can be found below.

Financial results FY11

FLSmidth experienced a record year for minerals in 2011. Overall, revenue increased by 9% to DKK2 1998 million compared to DKK2 0186 million in 2010. Order intake rose 16% to DKK2 4044 million, whilst order backlog grew by 14%. The company’s profit stood at DKK1437 million, a 12% increase from 2010. Earnings before tax reached DKK2070 million, rising from DKK1872 million the previous year.

Financial results Q411

Order intake rose 32% to DKK5856 million compared to an order intake of DKK4428 million in Q410, whilst revenue also increased by 32% to DKK7286 million. Whereas earnings before interest, tax, depreciation and amortisation stood at DKK633 million in Q410, in Q411 it grew 57% to DKK995 million. Profits soared 72% to DKK567 million.

Market trends in 2011

The cement industry experienced a low level of demand for equipment and services due to economic uncertainty in the West, political unrest in North Africa and a temporary halt in growth in India. However, there was increased demand from Russia, Central Africa and South America. The global market for new contracted cement kiln capacity (excluding China) fell from 65 million tpa in 2010 to 46 million tpa in 2011.

In contrast, demand for consumer goods and improved infrastructure in developing nations resulted in a growing minerals market. Whilst market conditions for minerals equipment and services were favourable, the supply of minerals was limited and therefore prices remained fairly high.

Outlook for 2012

FLSmidth plans to implement a new ‘Group Strategy’ over the next few years, which will see it focus on the coal, iron ore, fertiliser minerals, copper, gold and cement industries. As part of the strategy, the company will be restructured into the following four divisions: customer services, cement, bulk materials and non-ferrous. FLSmidth predicts consolidated revenue of DKK24 – 26 billion in 2012.

The full report can be found at http://www.flsmidth.com/reports

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