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FLSmidth announces interim report for first quarter 2019

Published by
World Fertilizer,

FLSmidth & Co. Group, the engineering, equipment and service solutions company, has announced their interim report for the first quarter of 2019.

Highlights of first quarter 2019

  • Order intake increased 12% on first quarter 2018
  • Largest order backlog since 2013
  • Revenue slightly up on first quarter 2018
  • Lower profitability due to Cement
  • Positive free cash flow
  • Positive sentiment in Mining continues and unchanged outlook for Cement 2019 guidance maintained


FLSmidth's order intake during the first quarter of 2019 aggregated DKK 5.6 billion, including two large cement orders from Paraguay and Vietnam. The order backlog grew to DKK 17.8 billion, the highest level since 2013 and up from DKK 13.9 billion at the same time last year.

Quarterly revenue came in at DKK 4.4 billion against DKK 4.2 billion in the same quarter of last year. The gross margin was adversely affected by business mix, particularly in cement, and fell to 24.5% from 25.4% in first quarter 2018. As a consequence, the earnings before interest taxes and amortisation (EBITA) margin was 7.1%, down from 8.1% in Q1 last year.

The group's return on capital employed (ROCE) advanced to 10.8%, up from 10.4% in first quarter last year. The equity ratio stood at 35.7% at the end of the first quarter, comfortably above the 30% target, and the financial gearing (NIBD/EBITDA) was 1.1.


Guidance for 2019 maintained


Management's guidance for the full year is unchanged. Thus, expectations for revenue in 2019 remains at DKK 19-21bn (2018: DKK 18.8bn), and the EBITA margin is expected to be 9-10%, up from 8.5% in 2018. The return on capital employed is expected to be 12-14% against 11% for 2018. Revenue and earnings are expected to pick up in the remainder of 2019, driven by higher revenue, particularly in mining, and improved profitability in cement.

For more details and to access FLSmidth's full interim report for the first quarter of 2019, please click here.

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