FLSmidth’s cement business saw order intake fall 17% year on year in 1Q17, despite picking up large orders in Colombia, Pakistan and Egypt. Total order intake for the quarter was DKK1.72 billion, compared to DKK 2.1 billion in 1Q16.
“Overall, the market for new cement capacity remains unchanged with no clear signs of sustained recovery,” the company said in its 1Q16 results.
Orders received by the Danish company include a €60 million contract to supply a complete cement production for EcoCementos in Colombia, a €75 million contract to supple and complete cement production line for Maple Leak Cement in Pakistan, and an order from El Sewady Cement to expand cement production at Ain Soukhna in Egypt.
Looking ahead the company noted that most enquiries where now coming from South and Southeast Asia led the activity, followed by North Africa and the USA. “Expectations for the mid-term remain cautiously optimistic,” it said.
Gross profit remained impacted by the increase of lower margin orders in the backlog, as well as an “unfavorable product mix in the quarter”. Gross profit was DKK 103 million in 1Q17 with the corresponding gross market down to 10.7% from 18.3% in 1Q16.
Read the article online at: https://www.worldcement.com/product-news/17052017/flsmidths-sees-orders-fall-in-1q17/