FLSmidth's revenue in 2020 is forecast to be DKK15.5bn-17bn (US$2.48bn-2.72bn), says the company. EBITA margin is expected to be 4.5-6 per cent, which takes into account around DKK210m of implementation costs related to business improvement activities.

On 23 March FLSmidth's financial guidance for 2020 was suspended due to the global uncertainty caused by the COVID-19 pandemic. On 28 April the company announced that full-year results were expected to be below the initial guidance. Visibility remains low, but FLSmidth says it has started to see a stabilisation of business activities and reinstate guidance for 2020 based on the following assumptions:
•    no further escalation of COVID-19
•    no further extensive lockdowns or travel restrictions occurring before year-end
•    a gradual improvement in business sentiment for the remainder of 2020
•    Business improvement implementation costs of around DKK210m are included in the guidance, of which DKK140m relate to the previously communicated improvement activities and around DKK70m relate to further improvement activities in cement.

The cement industry has been severely impacted, and the timing and extent of a rebound remain uncertain. FLSmidth reports that its goal for the cement business is to generate more stable, higher margin earnings.