FLSmidth: H1 2014 sees ‘significant improvement in margins’

Danish company 7451 FLSmidth says that for the half-year from 1 January-30 June, 2014, it has seen a significant improvement in margins.

Although the order intake declined due to lack of large orders, unannounced orders were stable; there was a positive operating cash flow, and net working capital and revenue developed broadly as expected.

In its interim report the company says the financial results in Q2 014 showed  the order intake decreased 17% to DKK 4,643 million (approximately €623 million)/(Q2 2013: DKK 5,626 million); revenue decreased 19% to DKK 5,577 million (Q2 2013: DKK 6,852 million) although earnings before amortisation and impairment of intangible assets (EBITA) increased 52% to DKK 472 million (Q2 2013: DKK 310 million), corresponding to an EBITA margin of 8.5% (Q2 2013: 4.5%).

Earnings before interest and tax (EBIT) increased 76% to DKK 381 million (Q2 2013: DKK 217 million) corresponding to an EBIT margin of 6.8% (Q2 2013: 3.2%).

The profit increased 67% to DKK 237 million (Q2 2013: DKK 142 million) while the cash flow from operating activities amounted to DKK 224 million (Q2 2013: DKK -51 million).

FLSmidth says its guidance for 2014 is unchanged and it expects to see group revenue of DKK 21-24 billion (2014 year-to-date DKK 10.9 billion).