Company Announcement to the Danish Financial Supervisory Authority No.
20-2014, 7 November 2014
Interim Report for FLSmidth & Co. A/S 1 January - 30 September 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 September 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:
Strong improvements in earnings and cash flow from operations.
Reduction in net working capital.
Low order intake as a result of continued low level of mining investments and
increased market uncertainty.
Full-year revenue and margin guidance maintained.
Financial results in Q3 2014
Order intake decreased 3% to DKK 4,502m (Q3 2013: DKK 4,642m)
Order backlog decreased 13% to DKK 21,416m (Q3 2013: DKK 24,595m)
Revenue decreased 18% to DKK 5,526m (Q3 2013: DKK 6,730m)
Earnings before amortisation and impairment of intangible assets (EBITA)
increased 104% to DKK 499m (Q3 2013: DKK 245m), corresponding to an EBITA margin
of 9.0% (Q3 2013: 3.6%)
Earnings before interest and tax (EBIT) amounted to DKK 410m (Q3 2013: DKK
-727m) corresponding to an EBIT margin of 7.4% (Q3 2013: -10.8%)
Profit amounted to DKK 215m (Q3 2013: DKK -783m)
Cash flow from operating activities increased 213% to DKK 887m (Q3 2013: DKK
283m)
Net interest-bearing debt amounted to DKK -4,881m (end of 2013: DKK -4,718m)
Net working capital amounted to DKK 2,761m (end of 2013: DKK 2,382m)
Return on capital employed (ROCE) was unchanged at 10% (Q3 2013: 10%)
Financial results in Q1-Q3 2014
Order intake decreased 9% to DKK 13,986m (Q1-Q3 2013: DKK 15,295m)
Order backlog decreased 4% to DKK 21,416m (end of 2013: DKK 22,312m)
Revenue decreased 16% to DKK 16,400m (Q1-Q3 2013: DKK 19,503m)
Earnings before amortisation and impairment of intangible assets (EBITA)
increased
76% to DKK 1,298m (Q1-Q3 2013: DKK 755m), corresponding to an EBITA margin of
7.9% (Q1-Q3 2013: 3.9%)
Earnings before interest and tax (EBIT) amounted to DKK 1,030m (Q1-Q3 2013: DKK
-399m) corresponding to an EBIT margin of 6.3% (Q1-Q3 2013: -2.0%)
Profit amounted to DKK 567m (Q1-Q3 2013: DKK -605)
Cash flow from operating activities amounted to DKK 559m (Q1-Q3 2013: DKK -234m)
Guidance for 2014
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 16.4bn)
EBITA margin 7-9% (2014 YTD Actual: 7.9%)
Return on capital employed 11-13% (2014 YTD Actual: 10%)
Cash flow from investments (excl. acquisitions) ~DKK -0.5bn (previously ~ DKK
-0.4bn) (2014 YTD Actual: DKK -0.2bn)
Effective tax rate 33-35% (2014 YTD Actual: 34%)
Cost associated with the efficiency programme is expected to amount to
approximately DKK -72m in 2014, which is 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 DKK 5.8bn)
Material Handling DKK 3.5-4.5bn (2014 YTD Actual DKK 3.0bn)
Mineral Processing DKK 5.5-6.5bn (2014 YTD Actual DKK 4.0bn)
Cement DKK 3.5-4.5bn (2014 YTD Actual DKK 3.0bn)
Cembrit ~DKK 1.5bn (previously 1.4bn) (2014 YTD Actual DKK
1.2bn)
Expected EBITA margin
Customer Services 13-15% (2014 YTD Actual 14.1%)
Material Handling 0-2% (2014 YTD Actual 1.2%)
Mineral Processing 6-8% (2014 YTD Actual 5.2%)
Cement 5-7% (2014 YTD Actual 6.3%)
Cembrit 3-5% (previously 0-2%) (2014 YTD Actual 6.0%)
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 14:00 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+Q3+2014
FLSmidth & Co. A/S
Corporate Communications & Investor Relations
[HUG#1869772]
