FLSmidth reports 2Q21 strong order intake and improved profitability

FLSmidth’s order intake in the 2Q21 increased 42 per cent compared to the 2Q20 and by 38 per cent to DKK4615m (US$97m) YoY. Cement service order intake reached DKK875 in the 2Q21 and cement capital orders totalled DKK807m in the 2Q21. 

Revenue increased by six per cent to DKK4073m in the 2Q21 (2Q20: DKK 3846m) and by nine per cent organically, comprising a 13 per cent increase in mining and a flat development in cement. Group EBITA margin increased to 4.8 per cent from 3.4 per cent in 2Q20.

FLSmidth Group CEO, Thomas Schulz, commented: "Our second quarter showed positive progress across the board: A strong order intake, including the award of Europe's first full-scale clay calcination installation which will cut plant CO₂ emissions by up to 16 per cent. Higher revenue from both service and capital businesses and 50 per cent higher EBITA compared to 2Q20. Further reduction in net working capital and a strong free cash flow. Overall, a good performance by our organisation."

FLSmidth updates its guidance to group revenue of DKK16-17bn (previously: DKK 15.5-17bn) and a group EBITA margin of 5-6 per cent. The guidance includes the cost related to the acquisition of thyssenkrupp’s mining business, estimated at around DKK100m for the full year.

FLSmidth reported increased demand for calcined clay but pointed out that non-critical investments are being deferred in the cement sector. The cement business revenue is expected to remain soft in the 2H21 and decline for the full year. Initiatives to reshape the cement business are progressing. The cement business is not expected to be EBITA positive in 2021 due to continued cement reshaping costs and low capacity utilisation in the service business, particularly related to the impact of the pandemic in the 1H21.