FL Smidth, the Danish mining and cement industry equipment supplier, reports its highest quarterly order intake from total service activities since 2012.
Order intake increased 5% and revenue was up 16% in its first quarter 2017 trading. But mining companies are still holding back on capital investments, FL Smidth says in a statement.
"The growing momentum in the global economy is filtering through to FLSmidth's service business, while demand for equipment and projects remains largely unaffected. Based on our extensive knowledge from projects, products, and services, we continue to improve our competitive edge and assist our customers in their pursuit of enhanced productivity," said Thomas Schulz, chief executive.
"It was important that we delivered a substantial progress based on our corrective actions program. The solid momentum underpinning our service activities has continued into 2017 in both mining and cement and it is proof of a strong performance delivered by the organisation," he said.
FL Smidth says its order intake increased 5% and revenue was up 16% while customer services and product companies "were supported by the strong momentum in the aftermarket." Order intake from total service activities grew 23%.
While order intake in minerals increased significantly, cement fell short of the record-high order intake in Q1 2016, despite three large orders received in the quarter, FL Smidth said.
