Company Announcement to the Danish Financial Supervisory Authority No. 16-2010, 18 May 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 31 March 2010. The Interim Report has been presented in accordance with IAS 34 and additional Danish information requirements regarding interim reporting of 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:
Increasing order intake and satisfactory earnings in challenging market
- The order intake increased 67% to DKK 5,195m (first quarter 2009: DKK 3,111m)
- The order backlog has increased 8% to DKK 22,883m since the turn of the year (end of 2009: DKK 21,194m)
- The revenue declined 13% to DKK 4,490m (first quarter 2009: DKK 5,173m)
- Earnings before interest, tax, depreciation and amortisation (EBITDA) declined 20% to DKK 462m (first quarter 2009: DKK 578m) corresponding to an EBITDA ratio of 10.3% (first quarter 2009: 11.2%)
- Earnings before interest and tax (EBIT) declined 24% to DKK 359m (first quarter 2009: DKK 474m), corresponding to an EBIT ratio of 8.0% (first quarter 2009: 9.2%)
- Earnings before tax (EBT) declined 8% to DKK 342m (first quarter 2009: DKK 372m)
- The profit for the period declined 50% to DKK 233m (first quarter 2009: DKK 467m)
- Cash flow from operating activities increased 82% to DKK 349m (first quarter 2009: DKK 192m)
- Net interest-bearing receivables by the end of the first quarter 2010 amounted to DKK 1,355m (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)
- In 2010, FLSmidth & Co. continues to expect a consolidated revenue of DKK 19-20bn and an EBIT ratio of 8-9%
- The prospects of the individual business areas in 2010 are as follows:
| Revenue | EBIT ratio | |
| Cement | DKK 9-10bn | approx. 9% |
| Minerals | DKK 8-9bn |
- 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 -400m in 2010
Please address any questions to this announcement to Mr Jørgen Huno Rasmussen, Group CEO, telephone +45 36 18 18 00.
A telephone conference regarding the Interim Report will be held today at 15:00 hours CET. For further details, please visit www.flsmidth.com
FLSmidth & Co. A/S
Corporate Communications & Investor Relations