Company Announcement no. 20-2007, 22 August 2007
The Board of Directors and the Corporate Management of FLSmidth & Co.
A/S has today reviewed and approved the Interim Report for 1 January
to 30 June. The Interim Report for the first half of 2007 has been
presented in accordance with IAS 34 and additional Danish information
requirements regarding interim reporting of listed companies.
No review nor auditing of the interim report has taken place.
The Interim Report is accessible at FLSmidth's website:
http://www.flsmidth.com/flsmidth/english/investor/reports/default.asp?lang=English
The main conclusions of the Interim Report are:
Developments in the first half of 2007
- The order backlog has increased by 15% to DKK 21,055m since the
turn of the year (end of 2006: DKK 18,264m)
- The order intake amounted to DKK 10,253m in the first half of 2007,
down from DKK 11,279m in the same period of the year before
- The turnover rose 59% to DKK 8,268m in the first half of 2007, up
from DKK 5,207m in the same period of the year before
- Earnings before interest and tax (EBIT) rose 175% to DKK 742m in
the first half of 2007, up from DKK 270m in the same period of the
year before, corresponding to an EBIT ratio of 9.0% (first half of
2006: 5.2%)
- Earnings before tax (EBT) rose 173% to DKK 800m in the first half
of 2007, up from DKK 293m in the same period of the year before
- Cash flow from operating activities (continuing activities)
amounted to DKK 485m in the first half of 2007 as against DKK 272m in
the same period of the year before.
Events occurring after the balance sheet date
As announced on 10 August 2007, FLSmidth & Co. has signed a final
agreement with the Board of Groupe Laperrière & Verreault Inc.
(GL&V), a listed Canadian company, to take over the latter's Process
division (GL&V Process), which holds a world leading position in
separation technology for the metal and minerals industries. The
total purchase price amounts to CAD 983m (DKK 5.0bn) and the
activities transferred will be consolidated as from 10 August 2007.
Prospects for 2007
The expectations for the cement market in 2007 are upgraded to
125-150m tonnes per year new contracted cement kiln capacity
worldwide (exclusive of China) (previous expectation 100m tonnes per
year).
FLSmidth & Co. upgrades its expectations for the year's turnover and
earnings, cf. the below figures which include the recognition of GL&V
Process as from 10 August 2007:
- Consolidated turnover DKK 19.5-20bn (previous expectation DKK
17-19bn), of which GL&V Process accounts for DKK 1.2bn
- Earnings before interest, tax, depreciation and amortisation and
special non-recurring items (EBITDA) DKK 1.85-2.0bn, of which GL&V
Process accounts for DKK 150m.
- Earnings before interest and tax (EBIT) DKK 1.45-1.6bn (previous
expectation DKK 1.2-1.35bn), of which GL&V Process accounts for DKK
0m
- Earnings before tax (EBT) DKK 1.45-1.6bn (previous expectation DKK
1.3-1.45bn), of which GL&V Process accounts for DKK -100m
FLSmidth's interactive electronic interim report
Via the website both figures and tables can be downloaded in Excel
spreadsheet and via the seach engine it is possible to make a global
search in the accounts for both figures and text.
Direct link: http://annualreport.fls.com/2007_q2
A web-casted investor meeting and telephone conference regarding the
Interim Report will be held today at 15:00 hours. For further
details, please visit www.flsmidth.com
FLSmidth & Co. A/S
Corporate Public Relations
