Interim report for FLSmidth & Co. for 1 January - 30 June 2017
(Thomson Reuters ONE) -
Company Announcement No. 10-2017, 09 August 2017
FLSmidth advanced further in first half of 2017
Growth in revenue (+11%) and EBITA (+25%) driven by the continued strong
momentum in service activities
Highlights
* Strong momentum in orders from service activities continued
* Increase in revenue as expected
* Higher operating profit despite one-off costs
* ROCE continued its upward trend
* The mining capital business remained soft while equipment sentiment and
order pipeline improved
* Guidance for 2017 confirmed
"We are pleased to report solid progress towards our KPI targets. The Group's
service activities continue to benefit from the firming global growth and
improvement in confidence. With Q2 marking the fourth consecutive quarter of
strong aftermarket momentum, especially in mining, the service business is
stabilising at a higher level," commented Group CEO Thomas Schulz.
"By constantly improving our offerings, based on knowledge from our rich global
spectrum of projects, products and services, we support our customers' pursuit
of productivity, while at the same time enhancing our competitive edge," said
Thomas Schulz.
The consolidated order intake grew by 5% in Q2 while revenue was up 11%. The
growth was attributable to all divisions but Minerals, as mining capital
investments remained soft despite a firmer sentiment and an improved order
pipeline.
Operating profit (EBITA) amounted to DKK 342m in Q2, up 25% from the
corresponding quarter of last year. EBITA included one-off costs of DKK -92m
related to corrective actions announced last year and the demobilisation of an
operation and maintenance contract. The EBITA margin was 9.5% adjusted for one-
off costs.
The quarter also saw an improvement in the Group's capital efficiency. The
return on capital employed advanced to 9.8% from 8.0% in Q2 of last year as a
result of lower capital employed and higher EBITA.
Guidance for 2017
The guidance for 2017 is confirmed. Revenue is expected to be DKK 17-19bn and
the EBITA margin 7-9%. The return on capital employed (ROCE) is expected to be
8-10%.
The EBITA guidance includes one-off costs of DKK -150m related to corrective
actions launched in 2016 (previous expectation DKK -200m) as well as other one-
off costs of DKK -62m recognised in Q2.
Contacts
Investors
Pernille Friis Andersen, tel +45 36 18 18 87, pefa(at)flsmidth.com
Nicolai Mauritzen, tel +45 36 18 18 51, nicm(at)flsmidth.com
Media
Sofie Karen Lindberg, tel +45 30 93 18 77, skl(at)flsmidth.com
Key figures Q2 2017
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DKKm Q2 Q2 Change Q1-Q2 Q1-Q2 Change Year
2017 2016 2017 2016 2016
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Order intake 4,580 4,345 5% 10,141 9,626 5% 18,303
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- of which service orders 2,653 2,432 9% 5,521 4,772 16% 10,029
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Service order intake share 58% 56% 54% 50% 55%
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Order backlog 14,115 15,914 -11% 14,115 15,914 -11% 13,887
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Revenue 4,585 4,135 11% 8,956 7,893 13% 18,192
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- of which service revenue 2,613 2,445 7% 5,287 4,772 11% 10,262
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Service revenue share 57% 59% 59% 60% 56%
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Gross profit 1,164 1,078 8% 2,298 2,116 9% 4,581
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Gross margin 25.4% 26.1% 25.7% 26.8% 25.2%
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EBITDA 405 340 19% 841 652 29% 1,588
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EBITA 342 273 25% 714 519 38% 1,289
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EBITA margin 7.5% 6.6% 8.0% 6.6% 7.1%
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EBITA margin adj. for one-off 9.5% 7.0% 9.0% 6.8% 8.0%
costs
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EBIT 237 177 34% 509 330 54% 881
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EBIT margin 5.2% 4.3% 5.7% 4.2% 4.8%
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Profit 75 97 -23% 236 170 39% 522
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CFFO -44 155 105 95 1,447
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Free cash flow -109 60 5 -12 1,253
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Net working capital 2,477 2,610 2,477 2,610 2,099
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Net interest- 2,590 3,844 2,590 3,844 2,525
bearing debt
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For additional information, go to the 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 FLSmidth and its 12,000 employees. The company generated revenue
of DKK 18 billion in 2016. Read more on www.flsmidth.com
Half year report 2017:
http://hugin.info/2106/R/2126339/811797.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: 09.08.2017 - 11:58 Uhr
Sprache: Deutsch
News-ID 555902
Anzahl Zeichen: 7841
contact information:
Town:
Valby
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 206 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Interim report for FLSmidth & Co. for 1 January - 30 June 2017"
steht unter der journalistisch-redaktionellen Verantwortung von
FLSmidth (Nachricht senden)
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