Company Announcement to the Danish Financial Supervisory Authority No.
15-2014, 13 August 2014
Interim Report for FLSmidth & Co. A/S 1 January - 30 June 2014
The Board of Directors and the Group Management of FLSmidth & Co. A/S have today
reviewed and approved the Interim Report for 1 January to 30 June 2014.
The Interim Report has been presented in accordance with IAS 34 and additional
Danish information requirements regarding interim reporting of listed companies.
No review or auditing of the interim report has taken place.
The Interim Report is accessible at FLSmidth's website:
http://www.flsmidth.com/reports
The main conclusions of the Interim Report are:
Guidance unchanged.
Significant improvement in margins.
Order intake declined due to lack of large orders, whereas unannounced orders
were stable.
Positive operating cash flow.
Net working capital and revenue developed broadly as expected.
Financial results in Q2 014
Order intake decreased 17% to DKK 4,643m (Q2 2013: DKK 5,626m)
Order backlog decreased 20% to DKK 21,713m (Q2 2013: DKK 26,983m)
Revenue decreased 19% to DKK 5,577m (Q2 2013: DKK 6,852m)
Earnings before amortisation and impairment of intangible assets (EBITA)
increased
52% to DKK 472m (Q2 2013: DKK 310m), corresponding to an EBITA margin of 8.5%
(Q2 2013: 4.5%)
Earnings before interest and tax (EBIT) increased 76% to DKK 381m (Q2 2013: DKK
217m) corresponding to an EBIT margin of 6.8% (Q2 2013: 3.2%)
The profit increased 67% to DKK 237m (Q2 2013: DKK 142m)
Cash flow from operating activities amounted to DKK 224m (Q2 2013: DKK -51m)
Net interest-bearing debt amounted to DKK -5,273m (end of 2013: DKK -4,718m)
Net working capital amounted to DKK 2,995m (end of 2013: DKK 2,382m)
Return on capital employed (ROCE) increased to 8% (Q4 2013: 6%)
Financial results in Q1-Q2 2014
Order intake decreased 11% to DKK 9,484m (Q1-Q2 2013: DKK 10,653m)
Order backlog decreased 3% to DKK 21,713m (end of 2013: DKK 22,312m)
Revenue decreased 15% to DKK 10,874m (Q1-Q2 2013: DKK 12,773m)
Earnings before amortisation and impairment of intangible assets (EBITA)
increased
56% to DKK 799m (Q1-Q2 2013: DKK 510m), corresponding to an EBITA margin of
7.3% (Q1-Q2 2013: 4.0%)
Earnings before interest and tax (EBIT) increased 89% to DKK 620m (Q1-Q2 2013:
DKK 328m) corresponding to an EBIT margin of 5.7% (Q1-Q2 2013: 2.6%)
Profit increased 99% to DKK 352 (Q1-Q2 2013: DKK 177m)
Cash flow from operating activities amounted to DKK -328m (Q1-Q2 2013: DKK
-517m)
Guidance for 2014 (unchanged)
In 2014, FLSmidth & Co. A/S expects to see the following developments for the
Group:
2014 Guidance
Revenue DKK 21-24bn (2014 YTD Actual: DKK 10.9bn)
EBITA margin 7-9% (2014 YTD Actual: 7.3%)
Return on capital employed 11-13% (2014 YTD Actual: 8%)
Cash flow from investments ~DKK -0.4bn (2014 YTD Actual: DKK -0.2bn)
Effective tax rate 33-35% (2014 YTD Actual: 34%)
Costs of DKK -72m associated with the efficiency programme in 2014 are included
in the guidance.
The four divisions and Cembrit are expected to see the following developments in
2014:
Expected revenue
Customer Services DKK 7.5-8.5bn (2014 YTD Actual: 3.7bn)
Material Handling DKK 3.5-4.5bn (2014 YTD Actual: 2.0bn)
Mineral Processing DKK 5.5-6.5bn (2014 YTD Actual: 2.8bn)
Cement DKK 3.5-4.5bn (2014 YTD Actual: 2.1bn)
Cembrit DKK 1.4bn (2014 YTD Actual: 0.8bn)
Expected EBITA margin
Customer Services 13-15% (2014 YTD Actual: 14.2%)
Material Handling 0-2% (2014 YTD Actual: 0.6%)
Mineral Processing 6-8% (2014 YTD Actual: 4.6%)
Cement 5-7% (2014 YTD Actual: 5.9%)
Cembrit 0-2% (2014 YTD Actual: 2.6%)
Please address any questions to this announcement to Mr Thomas Schulz, Group
CEO, telephone +45 36 18 18 00.
An investor & press meeting and telephone conference regarding the Interim
Report will be held today at 15:00 hours CET at the company's headquarters.
For further details please visit http://www.flsmidth.com/en-
US/News+and+Press/News/2014/Invitation+to+investor+meeting+Q2+2014
FLSmidth & Co. A/S
Corporate Communications & Investor Relations
[HUG#1848548]
