Company Announcement to the Danish Financial Supervisory Authority No. 27-2010, 19 August 2010
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 2010.
The Interim Report is presented in accordance with IAS 34, presentation of Interim Reports, as approved by the EU, and additional Danish disclosure requirements for interim reports submitted by listed companies.
The Interim Report has not been audited nor reviewed by the Group auditor.
The Interim Report is accessible at FLSmidth's website:
http://www.flsmidth.com/reports
The main conclusions of the Interim Report are:
Sharp increase in order intake in the first half of 2010 and upward adjustment of expectations for 2010
-The order intake increased 127% to DKK 12,716m (first half of 2009: DKK 5,611m)
- The order backlog increased 26% to DKK 26,621m since the turn of the year (end of 2009: DKK 21,194m)
- The revenue decreased 13% to DKK 9,413m (first half of 2009: DKK 10,766m)
- Earnings before interest, tax, depreciation and amortisation (EBITDA) decreased 13% to DKK 1,047m (first half of 2009 DKK 1,205m) corresponding to an EBITDA ratio of 11.1% (first half of 2009: 11.2%)
- Earnings before interest and tax (EBIT) decreased 18% to DKK 837m (first half of 2009: DKK 1,022m) corresponding to an EBIT ratio of 8.9% (first half of 2009: 9.5%)
- Earnings before tax (EBT) decreased 28% to DKK 710m (first half of 2009: DKK 988m)
- The profit for the period decreased 46% to DKK 491m (first half of 2009: DKK 904m)
- Cash flow from operating activities increased 21% to DKK 736m (first half of 2009: DKK 608m)
- Net interest-bearing receivables by the end of the first half of 2010 amounted to DKK 1,390m (end of 2009: DKK 1,085m)
Prospects for 2010
- The expectations for the cement market in 2010 remain unchanged at 50m tonnes per year new contracted cement kiln capacity worldwide (exclusive of China)
- FLSmidth & Co. upgrades its expectations for consolidated revenue in 2010 to DKK 20-21bn (previous expectation DKK 19-20bn) and maintains the expectation for the EBIT ratio at approximately 8-9%
- The prospects of the individual business areas in 2010 are as follows:
Cement
Revenue: DKK 9.5-10bn (previously DKK 9-10bn)
EBIT ratio: approx. 9%
Minerals
Revenue: DKK 9-9.5bn (previously DKK 8-9bn)
EBIT ratio: approx. 9%
Cembrit
Revenue: DKK approx. 1.2bn (unchanged)
EBIT ratio: approx. 2%
- The effect of purchase price allocations regarding GL&V Process is expected to amount to approximately DKK -100m in 2010 in the form of amortisation of intangible assets
- In 2010, the effective tax rate is expected to be around 30%
- Cash flow from investing activities (exclusive of acquisitions) is expected to be around DKK -600m in 2010 (previous expectation around DKK -400m)
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Please address any questions to this announcement to Mr Jørgen Huno Rasmussen, Group CEO, telephone +45 36 18 18 00.
An investor meeting and a telephone conference regarding the Interim Report will be held today at 11:00 hours CET. For further details, please visit www.flsmidth.com
FLSmidth & Co. A/S
Corporate Communications & Investor Relations