FLSmidth reports strong order intake in 1Q19

Two large cement orders from Paraguay and Vietnam supported Denmark-based equipment manufacturer FLSmidth’s order intake in the 1Q19. The order backlog expanded to DKK17.8bn (US$2.66bn), the highest level since 2013 and up from DKK13.9bn at the same time last year.

"Our order intake and order backlog demonstrate our competitive strength. Each new order is the result of a customer's careful selection of us to deliver and install mission critical equipment or to provide important services to enhance their productivity. The strong order intake paves the way for further advances in both revenue and profitability in 2019 and onwards,” according to Group CEO, Thomas Schulz.

The company’s quarterly revenue edged up to DKK4.4bn in the 1Q19, up from DKK4.2bn in the 1Q18. However, the gross margin was impacted by business mix, particularly in cement, and declined to 24.5 per cent from 25.4 per cent in the 1Q18. This resulted in a lower EBITA margin of 7.1 per cent when compared with 8.1 per cent in the year-ago period.

The company’s expectations for revenue in 2019 remains at DKK19-21bn (2018: DKK18.8bn), and the EBITA margin is expected to be 9-10 per cent, up from 8.5 per cent in 2018.

"The positive sentiment in Mining continues, while the Cement market remains competitive. We continue to pursue a range of attractive business opportunities fueled by our determined efforts in digitalization and sustainability. This enables us to continuously innovate our services and products, while advancing our in-house efficiency. Our role is to support our customers in their constant pursuit of enhancing productivity," commented Mr Schulz.