FLSmidth and Co. has published its interim report for 2Q15, concluding that the outlook for the global mining industry has deteriorated in recent weeks. This has had an adverse impact on management’s assessment of business risk and earnings in 2015.
The adjusted EBITA margin in 2Q15 was 9.2%.
Order intake increased to DKK 5259 million (13% y/y), and the order backlog decreased to DKK18 105 million (-17% y/y). Revenue increased by 4% to DKK5318 million.
The report also stated that new profit amounted to DKK214 million, EBITA decreased to DKK395 million (-14%), and net working capital amounted to DKK3207 million.
“Despite a deteriorating market situation in the minerals business and oil exporting countries, we see a solid development in three out of our four divisions; especially in regards to the total service revenue which increased 24%. And with the revised guidance for 2015 and the efficiency improvements already implemented, we will manage this prolonged cyclical downturn and continue to prepare for the upturn," commented Thomas Schulz, Group CEO.
Based on a deteriorating outlook for the mining industry and a pre-emptive management assessment of associated business risks, the guidance for 2015 has been updated: FLSmidth and Co. maintains expectations to the consolidated revenue of DKK19 - 21 billion, but it is now believed that the revenue will be at the upper end of the guided range due to currency developments.
Edited from press release by Angharad Lock
Read the article online at: https://www.worldcement.com/europe-cis/25082015/flsmidth-interim-report-435/