FLSmidth sees 22% rise in revenue

FLSmidth has reported a 22 per cent YoY increase in revenue to DKK4660m (US$718.8m) in the third quarter of 2021, compared to DKK3834m in the 3Q20. EBITA advanced 72 per cent to DKK305m from DKK177m, while EBITA margin reached 6.5 per cent from 4.6 per cent.

Including currency effects, order intake increased by 15 per cent YoY to DKK4549m against DKK3955m in the year-ago period.

“Third quarter saw strong momentum in order intake. In particular for service orders, as activity in the mining industry continues to gather pace with pandemic restrictions easing globally. The cement industry is likewise emerging from the pandemic with improved service activity and growing demand for greener solutions,” said FLSmidth Group CEO, Thomas Schulz.

Cement order intake increased 17 per cent YoY to DKK1397m, as a result of a 44 per cent rise in service orders and an 18 per cent decline in capital orders. 

Outlook 2021
FLSmidth maintains its guidance for group revenue of DKK16-17bn and a group EBITA margin of 5-6 per cent. The guidance includes costs related to the acquisition of thyssenkrupp’s mining business, estimated at around DKK100m for the full year.

However, cement revenue is expected to decline for the full year. The cement business is not expected to be EBITA positive in 2021 due to reshaping costs and low-capacity utilisation in the service business, particularly related to the impact of the pandemic in the first half.

New CEO
Thomas Schulz has also made the decision to take a role outside of the company and will therefore step down as CEO by the end of 2021. Mikko Keto, who joined FLSmidth in January 2021 as president of FLSmidth’s Mining business and member of Group Executive Management, has been appointed incoming CEO by the board, effective from 1 January 2022.

“I am pleased we are able to recruit internally for such a vital position, which will ensure a continuation of the strong progress FLSmidth is demonstrating. Since joining FLSmidth, Mikko has been setting a clear direction for our Mining business and is overseeing the thyssenkrupp acquisition’s integration planning. There is significant growth potential ahead in the mining industry, and Mikko’s experience including his leadership skills, comprehensive industry insight and proven track record in driving business initiatives that deliver profitability will be a competitive advantage for FLSmidth. I have strong confidence is his ability to deliver a very successful and profitable FLSmidth going forward and unfold the full potential of MissionZero,” said Vagn Sørensen, chairman.