The cement industry is showing early signs of recovery, says Thomas Schulz, chief executive, FL Smidth in the company report on trading in 2016.
“After a weak first half, activity picked up, finishing the year on a strong note. Rising commodity prices positively impacted sentiment in the mining industry in 2016, although it has yet to translate into higher capital investments," Schultz said.
Smidth saw service orders lift in the second half of 2016, while revenue was above and EBITA margin within guidance for 2016.
The company says debt was significantly reduced on the back of strong operating cash flow; revenue and EBITA margin in 2017 is expected to be at a level similar to 2016, and Q4 2016 saw the highest quarterly revenue in two years.
Order intake increased 2% organically in 2016, while revenue was 5% down due to a lower order backlog at the beginning of the year and a slow start to the year.
