The company had suspended its guidance on March 23 due to the global uncertainty caused by the COVID-19 pandemic. On April 28, it announced that full year results were expected to be below the initial guidance.
It has now reinstated the initial guidance. Revenue in 2020 is expected to be DKK15.5-17bn €2.08-2.28bn. EBITA margin is expected to be 4.5-6%, which takes into account around DKK210m (€28.21m) of implementation costs related to business improvement activities.
FLSmidth says that, although it is now seeing a stabilisation in activities, "visibility remains low".
The reinstated guidance is based on the assumptions of no further extensive lockdowns or travel restrictions occurring before year-end, and a gradual improvement in business sentiment for the remainder of 2020.
The DKK210m business improvement implementation costs are included in the guidance, of which DKK140m (€18.81m) relate to the previously communicated improvement activities and around DKK70m (€9.4m) relate to further improvement activities in cement.
