FLSmidth adjusts 2019 EBITDA guidance

FLSmidth revises its financial guidance for the full-year 2019. Revenue is now expected to be in the range of DKK20-21bn (US$2.95-3bn).

The EBITA margin is now expected to be around eight per cent down from previous estimates of 9-10 per cent. Return on capital employed is now expected to be 10-12 per cent (previously 12-14 per cent).

FLSmidth specified that it expected the full-year EBITA margin to be in the lower end of the range of 9-10 per cent due to 'a different development in business mix'.

"Despite good momentum in service order intake and a solid performance in cement, we now expect an EBITA margin of around eight per cent for the year," said the company in a statement.

FLSmidth Group CEO, Thomas Schulz, comments: "We see good momentum in the service business, but parts of our Mining capital business are not delivering the planned margin. We have reviewed the project portfolio to ensure a better link between planned and executed margin going forward. A contributing factor has been the weakening business environment which has delayed customer decisions and added costs as it has been difficult to ensure satisfactory progress on some projects. At the same time, we experience that it is becoming increasingly difficult for miners to obtain licenses for new projects.

"Later in the year, we will inform about mitigating initiatives to improve business performance, which will include an acceleration of ongoing efforts to improve business performance."