FLSmidth announces a record high service order intake
Published by Lucy Stewardson,
FLSmidth has announced that in 3Q19 its revenue increased by 9%, its EBITDA increased by 8%, and that EBITDA margin declined by 8%. The company also saw a strong service order intake, a lower capital order intake, and positive free cash flow.
FLSmidth’s order intake for 3Q19 amounted to DKK4571 million – a decline of 36% compared to 3Q18. The performance is explained by a sharp decline in the capital order intake that was partly offset by a record high service order intake, combined with an exceptionally strong comparative quarter in 2018, which included two large cement plant orders worth a total of about DKK1.9 billion.
The order backlog decreased to DKK16 088 million at the end of 2Q19.
“Global economic headwinds combined with challenges regarding license to operate have led to a more cautious outlook for mining capital investments,” said Thomas Schulz, FLSmidth Group CEO. “The social license to operate is becoming an increasingly important issue and is now considered a top risk for mining companies. This has caused some projects to be postponed. On the other hand, we are seeing growing interest in our sustainable technologies and tailings management, which can help mining companies maximise safety and attain a license to operate. Sustainability is also gaining traction in the cement industry, and customers looking to reduce their environmental footprint and enhance productivity are increasingly taking an interest in our pyro upgrades, including our Low-NOX calciner technology and out HOTDISC® systems.”
Read the article online at: https://www.worldcement.com/europe-cis/29102019/flsmidth-announces-a-record-high-service-order-intake/
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