Company Announcement to the Danish Financial Supervisory Authority No. 28-2013, 6 November 2013
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 2013.
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:
Main conclusions Q3 2013
Business environment unchanged in Q3.
Group guidance for 2013 maintained.
Q3 results impacted by special items as previously guided.
Cyclical downturn in mining capex expected to continue throughout 2014.
Revenue increased 0% (7% adjusted for currency effects).
Order intake decreased 42% (decreased 36% adjusted for currency effects).
EBITA margin declined to 3.6% impacted by special items as previously guided. (EBITA margin adjusted for special items 9.1%).
Financial results in Q3 2013
Order intake decreased 42% to DKK 4,642m (Q3 2012: DKK 7,956m)
Revenue increased 0% to DKK 6,730m (Q3 2012: DKK 6,708m)
EBITA decreased 63% to DKK 245m (Q3 2012: DKK 659m), corresponding
to an EBITA margin of 3.6% (Q3 2012: 9.8%)
EBITA adjusted for special items decreased 7% to DKK 615m (Q3 2012: DKK 659m), corresponding to an EBITA margin of 9.1% (Q3 2012: 9.8%)
EBIT decreased to DKK -727m (Q3 2012: DKK 561m) corresponding to an EBIT margin of -10.8% (Q3 2012: 8.4%)
Profit decreased to DKK -783m (Q3 2012: DKK 377m)
Cash flow from operating activities amounted to DKK 283m (Q3 2012: DKK -28m)
ROCE decreased to 10% (Q3 2012: 19%)
Financial results in Q1-Q3 2013
The order intake decreased 29% to DKK 15,295m (Q1-Q3 2012: DKK 21,623m)
The order backlog decreased 23% to DKK 24,595m (end of 2012: DKK 31,766m)
Revenue increased 9% to DKK 19,503m (Q1-Q3 2012: DKK 17,889m)
EBITA decreased 55% to DKK 755m (Q1-Q3 2012: DKK 1,666m), corresponding
to an EBITA margin of 3.9% (Q1-Q3 2012: 9.3%)
EBITA adjusted for special items decreased 13% to DKK 1,448m (Q1-Q3 2012: DKK 1,666m), corresponding to an EBITA margin of 7.4% (Q1-Q3 2012: 9.3%)
Earnings before interest and tax (EBIT) amounted to DKK -399m (Q1-Q3 2012: DKK 1,244m) corresponding to an EBIT margin of -2.0% (Q1-Q3 2012: 7.0%)
The profit amounted to DKK -605m (Q1-Q3 2012: DKK 841m)
Cash flow from operating activities amounted to DKK -234m (Q1-Q3 2012: DKK 188m)
Net interest-bearing debt amounted to DKK -4,426m (end of Q3 2012: DKK -4,383m)
Net working capital amounted to DKK 2,285m (end of Q3 2012: DKK 2,930m)
Guidance for 2013
Group guidance for 2013 maintained.
Divisional guidance updated to include allocation of special items to divisions.
Group guidance 2013
Revenue DKK 26-28bn
EBITA margin (including special items) 4-5%
CFFI DKK -0.8bn
ROCE 7-8%
The Group guidance for 2013 includes the following special items:
Material Handling one-off costs booked in Q2, EBITA DKK -323m, EBIT DKK -323m
Inventory write-down booked in Q3 , EBITA DKK -203m, EBIT DKK -203m
Efficiency Programme one-off costs expected to be booked in Q3-Q4, EBITA DKK -350m, EBIT DKK -350m
Ludowici impairment write-down booked in Q3, EBIT DKK -880m
Total impact, EBITA DKK -876m, EBIT DKK -1,756m
Additionally, the guidance for 2013 includes costs of a one-off nature amounting to DKK -200m as announced in connection with the Annual Report 2012.
Updated divisional guidance for 2013:
The divisional guidance has been updated to include allocation of the following special items to divisions: inventory write-down of DKK -203m and one-off costs related to Efficiency Programme of DKK -350m. The divisional EBITA margin guidance is unchanged excluding special items.
Expected revenue
Customer Services DKK 7-8bn (previously DKK 8-9bn)
Material Handling DKK 4-5bn
Mineral Processing DKK 9-10bn (previously DKK 9-11bn)
Cement DKK 5-6bn
Expected EBITA margin (incl. special items)
Customer Services 10-11% (previously 13-14% excl. special items)
Material Handling -11% to -12% (previously -8% to -9% excl. special items)
Mineral Processing 8-9% (previously 8-9% excl. special items)
Cement 5-6% (previously 6-7% excl. special items)
Cembrit is expected to generate revenue of DKK 1.4bn and an EBITA margin of -4% (including special items) in 2013 (previously 0%). Eliminations in the form of intercompany trade is expected to amount to around DKK -1bn in 2013.
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 11:00 hours CET at the company's headquarters.
For further details please visit www.flsmidth.com.
http://www.flsmidth.com/en-us/News+and+Press/News/2013/Invitation+to+Investor+Meeting+Q3+2013
FLSmidth & Co. A/S
Corporate Communications & Investor Relations