FLSmidth reports 13% order increase in 2Q18

FLSmidth has released its interim 2Q18 report and reported a 13 per cent order increase to DKK5.056bn (US$787.86m) for the period, driven by over 100 per cent growth in the minerals division. Revenue in the second quarter advanced 3.2 per cent YoY to DKK4.73bn, compared with DKK4.585bn of 2Q17.

"We saw the highest order intake in the Minerals division for several years, which shows that miners are starting to put action behind their investment plans. Most activity is related to single equipment and brownfield expansion. We benefit from our business model of full life-cycle offerings which enables us to support customers in their pursuit of productivity enhancements", said Thomas Schulz, Group CEO.

In the half-year period, EBITA showed a minor increase of one per cent YoY to DKK724m from DKK714m, with the EBITDA margin similarly rising to 8.1 per cent from eight per cent.

Cement division
Order intake in the cement sector fell 42 per cent YoY in the Jan-Jun 2018 period to DKK1.6bn, compared with DKK2.74bn of the year-ago period. However, revenue increased two per cent to DKK2.029bn from DKK1.991bn. EBITDA for the division reached DKK22m, while the EBITDA margin rose to 1.1 per cent from -4.4 per cent.

"The market for new cement capacity remains subdued with low plant utilisation on a global scale and few tenders for large projects. The pipeline includes select opportunities in North Africa, parts of Asia, Latin America and the Middle East. The Indian market is slowly picking up from a low level" stated the company in its interim report.