FLSmidth Q1 2018 interim report

In its interim report for interim report for Q1 2018, 7451 FLSmidth & says it has had its highest service order intake since Q4 2012 and its first large mining order in three years.

The report covers the period from. 1 January-31 March 2018.

“The mining industry is recovering, and winning our first large mining order since 2015 is one of several indicators that mining capex is trending positively," says Thomas Schulz, group CEO.

The return on capital employed (ROCE) increased to 10.4% in Q1 2018 from 9.4% in Q1 2017.

Net working capital decreased to the lowest level since 2012 and the net working capital ratio declined to 8.9%.

FLSmidth saw significant currency headwinds, which impacted both revenue and the order intake by 8% in Q1 2018. Thus, revenue was down 3% in DKK but increased 3% organically.

The order intake was down 10% in DKK but only 3% organically from the very strong order intake in Q1 2017, which included three large cement orders.

The total service order intake was the highest since Q4 2012, despite a 9% negative foreign exchange impact year on year.

EBITA decreased 8% due to lower revenue and a slightly lower gross margin. The EBITA margin fell to 8.1% from 8.5%.

The guidance for 2018 is unchanged at revenue of DKK 18-20 billion (approximately €2.4-2.7 billion) and an EBITA margin of 8-10%.