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Annual report for FLSmidth released

Published by
World Cement,

The FLSmidth Board of Directors and the Executive Board have considered and approved the Annual Report for the financial year 1 January - 31 December 2015.

The consolidated financial statements are presented in accordance with International Financial Reporting Standards as adopted by the EU. The parent financial statements are presented in accordance with the Danish Financial Statements Act. Further, the Annual Report is prepared in accordance with Danish disclosure requirements for listed companies.

Group CEO Thomas Schulz, FLSmidth & Co. A/S says; "With the Annual Report published today, we showed that we are managing the cyclical downturn well. Despite a very challenging market situation our performance is solid, and our products and services provide a stable and profitable business. The financial result is in line with our guidance, our order intake is up, and we have a positive free cash flow. We will continue to invest in our people and to streamline our footprint to ensure that FLSmidth has an organisation that is geared for the future."

Challenging market conditions impacted the financial performance in 2015. Reported revenue and earnings were in line with the latest Group guidance. Order intake increased 7%, supported by currency developments. Highest free cash flow in six years owing to the divestment of Cembrit. Reduction in net debt of DKK 0.9 billion brings the capital structure on target. The guidance for 2016 reflects high market volatility and low visibility.

Financial results for 2015:

  • The order intake increased 7% to DKK 18 490m (2014: DKK 17,267m).
  • The order backlog decreased 16% to DKK 14 858m (2014: DKK 17,726m).
  • Revenue decreased 4% to DKK 19 682m (2014: DKK 20,499m).
  • The gross profit decreased 3% to DKK 4946m (2014: DKK 5125m), corresponding to a gross profit margin of 25.1% (2014: 25.0%).
  • Earnings before amortisation and impairment of intangible assets (EBITA) decreased 13% to DKK 1582m (2014: DKK 1823m), corresponding to an EBITA margin of 8.0% (2014: 8.9%).
  • The EBITA margin adjusted for one-off costs was 9.7% (2014: 9.7%).
  • Earnings before interest and tax (EBIT) decreased 19% to DKK 1141m (2014: DKK 1416m), corresponding to an EBIT margin of 5.8% (2014: 6.9%).
  • Profit for the year decreased 48% to DKK 425m (2014: DKK 813m), of which DKK -178m were related to discontinued activities (2014: DKK -68m).
  • Cash flow from operating activities amounted to DKK 538m (2014: DKK 1298m) of which DKK 991m were related to continuing activities (2014: DKK 1178m).
  • Free cash flow amounted to DKK 1288m (2014: DKK 700m).
  • Net interest-bearing debt amounted to DKK -3674m (end of 2014: DKK -4593m).
  • Net working capital amounted to DKK 2583m (end of 2014: DKK 2276m).
  • Return on Capital Employed (ROCE) decreased to 10% (2014: 12%).

Adapted from press release by Joseph Green

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