Interim report for FLSmidth & Co. for 1 January - 30 September 2017
(Thomson Reuters ONE) -
Company Announcement No. 13-2017, 9 November 2017
Improved momentum in mining equipment and the cement market is challenging
Positive cash flow generation and higher EBITA margin despite lower revenue
Highlights
* Higher EBITA margin despite lower revenue
* Improved sentiment led to higher order intake in the minerals business
* Reduced activity in the cement business caused a decline in service orders
* Positive free cash flow
* Guidance for 2017 maintained
"Equipment orders are beginning to materialise thanks to the improved sentiment
in the mining industry. We expect to see some recovery in large minerals
projects in 2018, although we do not expect high growth rates next year. In
addition, the cement industry is showing less strength than in recent quarters,
and we do not expect to see a recovery in 2018, but our relentless efforts to
achieve our long-term financial targets will continue," commented Group CEO
Thomas Schulz.
"We have positioned ourselves to pursue growth through productivity for our
customers and for FLSmidth. Our unique combination of products, projects and
service expertise sets us apart in the market. This powerful combination is a
driver for how FLSmidth delivers sustainable productivity enhancement as a
trusted adviser and partner our customers want to do business with," said Thomas
Schulz.
The order intake grew 4% organically, driven by stronger demand in Minerals.
Revenue was down 10% organically, primarily due to the low order intake by the
two capital divisions in the second half of 2016. Service related order intake
was also lower in the quarter, but it remains at a healthy level for the year to
date.
Low revenue in the quarter resulted in a slightly lower EBITA at DKK 336m,
whereas the EBITA margin increased to 8.2% due to a higher gross margin and a
significantly lower cost base.
The return on capital employed increased to 10.0% from 8.2% in Q3 2016, driven
by higher EBITA and lower capital employed.
A reduction of net working capital and the positive free cash flow made for a
reduction in net debt to DKK 2.2bn. The financial gearing (NIBD/EBITDA)
decreased to 1.2, well within the long-term target.
Guidance for 2017
The guidance for 2017 is unchanged. FLSmidth expects revenue of DKK 17-19bn and
an EBITA margin of 7-9%. The return on capital employed (ROCE) is expected to be
8-10%.
The EBITA margin guidance includes expected one-off costs of DKK -100m related
to corrective actions as well as other one-off costs of DKK -62m (recognised in
Q2).
Contacts
Investors
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 Q3 2017
Q1-Q3 Q1-Q3 Change
(DKKm) Q3 2017 Q3 2016 Change (%) 2017 2016 (%) Year 2016
--------------------------------------------------------------------------------
Order intake 4,193 4,133 1% 14,334 13,759 4% 18,303
(gross)
--------------------------------------------------------------------------------
- of which 2,501 2,647 -6% 8,023 7,419 8% 10,029
service order
intake
--------------------------------------------------------------------------------
Service order 60% 64% 56% 54% 55%
intake share
--------------------------------------------------------------------------------
Order backlog 13,799 15,174 -9% 13,799 15,174 -9% 13,887
--------------------------------------------------------------------------------
Revenue 4,101 4,774 -14% 13,057 12,667 3% 18,192
--------------------------------------------------------------------------------
- of which 2,614 2,601 0% 7,902 7,373 7% 10,262
service
revenue
--------------------------------------------------------------------------------
Service 64% 54% 61% 58% 56%
revenue share
--------------------------------------------------------------------------------
Gross profit 1,065 1,164 -9% 3,363 3,280 3% 4,581
--------------------------------------------------------------------------------
Gross margin 26.0% 24.4% 25.8% 25.9% 25.2%
--------------------------------------------------------------------------------
EBITDA 398 421 -5% 1,239 1,073 15% 1,588
--------------------------------------------------------------------------------
EBITA 336 344 -2% 1,050 863 22% 1,289
--------------------------------------------------------------------------------
EBITA margin 8.2% 7.2% 8.0% 6.8% 7.1%
--------------------------------------------------------------------------------
EBITA margin 8.3% 8.0% 8.8% 7.2% 8.0%
adjusted for
one-off costs
--------------------------------------------------------------------------------
EBIT 234 243 -4% 743 573 30% 881
--------------------------------------------------------------------------------
EBIT margin 5.7% 5.1% 5.7% 4.5% 4.8%
--------------------------------------------------------------------------------
Profit 23 170 -86% 259 340 -24% 522
--------------------------------------------------------------------------------
CFFO 414 744 -44% 519 839 -38% 1,447
--------------------------------------------------------------------------------
Free cash 345 701 -51% 350 689 -49% 1,253
flow
--------------------------------------------------------------------------------
Net working 2,232 2,251 -1% 2,232 2,251 -1% 2,099
capital
--------------------------------------------------------------------------------
Net interest- 2,155 3,150 -32% 2,155 3,150 -32% 2,525
bearing debt
--------------------------------------------------------------------------------
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
3rd quarter report 2017:
http://hugin.info/2106/R/2148542/824305.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: 09.11.2017 - 11:59 Uhr
Sprache: Deutsch
News-ID 567493
Anzahl Zeichen: 8136
contact information:
Town:
Valby
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 194 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Interim report for FLSmidth & Co. for 1 January - 30 September 2017"
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FLSmidth (Nachricht senden)
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