Annual Report 2016 for FLSmidth & Co.
(Thomson Reuters ONE) -
Company Announcement no. 2-2017, 09 February 2017
Market activity picked up in the second half of 2016
Highlights
* Positive momentum in service orders in the second half of 2016
* Revenue above and EBITA margin within guidance for 2016
* Debt significantly reduced on the back of strong operating cash flow
* Revenue and EBITA margin in 2017 is expected to be at a level similar to
2016
* Q4 2016 saw the highest quarterly revenue in two years
"After a weak first half, activity picked up, finishing the year on a strong
note. Rising commodity prices positively impacted sentiment in the mining
industry in 2016, although it has yet to translate into higher capital
investments. The cement industry is showing early signs of recovery," commented
Group CEO Thomas Schulz.
"Our range of projects, products, and services assist our customers in their
pursuit of enhanced productivity, and we continue to improve our offerings to
maintain our competitive edge," said Thomas Schulz.
Order intake increased 2% organically in 2016, while revenue was 5% down due to
a lower order backlog at the beginning of the year and a slow start to the year.
In 2016, the EBITA margin was 8.0% (adjusted for one-off costs), adversely
impacted by lower revenue, particularly in the first half. Towards the end of
the year, activity picked up, and the adjusted EBITA margin increased to 9.7% in
the fourth quarter.
Capital efficiency improved in 2016. The equity ratio increased to 35% and the
financial gearing (NIBD/EBITDA) declined to 1.6, both comfortably within the
targeted capital structure. Improved working capital and positive operating cash
flow reduced net interest-bearing debt by DKK 1.1bn in 2016.
Guidance for 2017
The guidance for 2017 reflects the lower order backlog at the beginning of the
year combined with an assumption of stable market activity in 2017. The EBITA
margin guidance includes expected one-off costs related to corrective actions.
Accordingly, revenue is expected to be DKK 17-19bn and the EBITA margin to be
7-9%. The return on capital employed (ROCE) is expected to be 8-10%.
Contacts
Investors
Pernille Friis Andersen, phone +45 36 18 18 87, pefa(at)flsmidth.com
Nicolai Mauritzen, phone +45 36 18 18 51, nicm(at)flsmidth.com
Media
Sofie Karen Lindberg, phone +45 30 93 18 77, skl(at)flsmidth.com
Key Figures Q4 and full-year 2016
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DKKm Q4 2016 Q4 2015 Change 2016 2015 Change
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Order intake 4,544 3,691 23% 18,303 18,490 -1%
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Service 2,610 2,271 15% 10,029 9,660 4%
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Service share 57% 62% 55% 52%
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Order backlog 13,887 14,858 -7% 13,887 14,858 -7%
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Revenue 5,525 5,297 4% 18,192 19,682 -8%
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Service 2,889 2,807 3% 10,262 10,901 -6%
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Service share 52% 53% 56% 55%
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Gross profit 1,301 1,255 4% 4,581 4,946 -7%
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Gross margin 23.5% 23.7% 25.2% 25.1%
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EBITDA 515 463 11% 1,588 1,878 -15%
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EBITA 426 384 11% 1,289 1,582 -19%
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EBITA margin 7.7% 7.2% 7.1% 8.0%
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EBITA margin adj. for one off 9.7% 8.9% 8.0% 9.7%
costs
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EBIT 308 279 10% 881 1,141 -23%
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EBIT margin 5.6% 5.3% 4.8% 5.8%
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Profit 182 23 691% 522 425 23%
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CFFO 608 148 311% 1447 538 169%
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Free cash flow 564 168 +291% 1,253 1,288 -3%
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Net working capital 2,099 2,583 -19% 2,099 2,583 -19%
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Net interest-bearing debt 2,525 3,674 -31% 2,525 3,674 -31%
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For additional information, Investor Room at www.flsmidth.com.
FLSmidth is the market-leading supplier of productivity to the global mining and
cement industries. Headquartered in Copenhagen, Denmark, and with offices in
more than 50 countries, FLSmidth delivers engineering, equipment and service
solutions to customers worldwide. Productivity, sustainability, and quality are
focus areas for the 12,000 employees in FLSmidth. The company generates annual
revenue of approximately DKK 18 billion. Read more on www.flsmidth.com
Annual Report 2016:
http://hugin.info/2106/R/2077245/781404.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: FLSmidth via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 09.02.2017 - 11:58 Uhr
Sprache: Deutsch
News-ID 523181
Anzahl Zeichen: 7456
contact information:
Town:
Valby
Kategorie:
Business News
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"Annual Report 2016 for FLSmidth & Co."
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