FLSmidth sees 5% rise in order intake in 2021

FLSmidth reported a five per cent increase in order intake in 2021 as the impact of the COVID-19 pandemic waned and project sites became more accessible. Including currency effects the intake was up by four per cent to DKK19,233m (US$2941m) with mining and cement contributing equally to the growth. Service order intake advanced by 14 per cent while capital orders declined by seven per cent.

FLSmidth Group CEO, Mikko Keto, commented: “FLSmidth delivered a solid performance in 2021. Despite the challenges presented by the pandemic and the global supply chain constraints, order intake, revenue and EBITA increased substantially over 2020 and cash flow performance was strong. Key drivers behind the 2021 performance are continued good momentum in Mining, and improvements in our Cement business. Further, we have announced one of the biggest acquisitions in our history, namely the acquisition of thyssenkrupp’s Mining business. This will position FLSmidth as one of the strongest suppliers to the mining industry with complete pit-to-plant flowsheet solutions driving sustainable productivity.”

In terms of financial performance, the company leveraged its flexible supply chain, which when combined with easing pandemic restrictions during the 2H21, saw full-year 2021 organic revenue increase by eight per cent. Including currency effects, group revenue increased by seven per cent to DKK17,581m, primarily driven by the Capital business.

Gross profit increased by eight per cent and EBITA by 34 per cent as a result of higher revenue and operating leverage. The EBITA margin edged up to 5.9 per cent with improvements in both Mining and Cement. Adjusted for the costs related to the acquisition of thyssenkrupp’s Mining business the EBITA margin was 6.5 per cent.

FLSmidth has secured six large orders in 2021 and a book-to-bill of 109 per cent for the year. Cash remains a core focus, and with a net working capital ratio of six per cent at end 2021, the company delivered a cash flow from operating activities of DKK1.4bn in 2021.

Outlook
According to FLSmidth, the outlook for its two end-markets remains very different. The outlook for the mining industry remains positive driven by global economic development and increased demand for minerals required for the green transition. The short-term outlook for the cement industry remains impacted by overcapacity and slow recovery. Mid-term recovery expected in the cement industry driven by increased demand for sustainability solutions.

Mikko Keto commented: ” Beyond managing our two businesses, which each pursue a strategy and cost structure most appropriate to their market environment, we are deeply committed to ensuring a smooth integration of thyssenkrupp’s Mining business into FLSmidth and on building an even stronger brand for the green future. In addition, we will focus on driving operational excellence to deliver improved financial performance.”