Displaying items by tag: FLSmidth

Denmark: The Danish cement plant manufacturer FLSmidth has announced that its total order intake fell by 22% to Euro1.43bn in the first half of 2013 from Euro1.83bn in the first half of 2012. However, its revenue increased by 16% to Euro1.62bn from Euro1.41bn.

Earnings before amortisation and impairment of intangible assets (EBITA) decreased by 45% to US$72.5m from Euro131.9m in the first half of 2012. FLSmidth's profit decreased by 62% to Euro23.7m from Euro62.2m in the first half of 2012.

Looking towards the rest of 2013, FLSmidth said that, over its entire operations (which now includes recent acqusition Cembrit), it expects consolidated revenue of Euro3.5 - 3.75bn. The launch of an efficiency programme is expected to create a sustainable EBITA improvement of Euro100m with full-year effect from 2015.

Brazil: FLSmidth has received two new orders in Brazil. The first is for a 3300t/day line for Pitimbu Plant, a greenfield project by Companhia De Cimento Da Paraíba in Paraíba state. The Danish cement plant supplier previously built a plant at Sete Lagoas for the client.

The second order is for an OK-33 vertical roller mill. Cimento Itambé has ordered the mill for cement grinding at its Balsa Nova Plant located in Paraná state. This is the 19th OK mill sold in Brazil.

"The awarding of these orders to FLSmidth is a consequence of a high market demand and has been given to FLSmidth in spite of great competitor interest in the same area," said President, Cement Division, Per Mejnert Kristensen.

India: The Danish cement plant supplier FLSmidth has reported that it has received an order worth around US$35.5m from the Indian cement manufacturer Orient Cement Limited for the supply of main equipment for a greenfield cement plant to be located in the state of Karnataka in southern India. The plant will have a capacity of 6000t/day. The order will be booked by the Cement division and contribute beneficially to FLSmidth's earnings until the end of 2014.

The order covers engineering and supply of main equipment from limestone crusher to packing plant. Included in the scope of supply are key components for raw material crushing equipment, limestone, coal and additive stores, raw material grinding system using roller press technology, vertical mill for coal grinding, ILC pyro processing system with Cross-Bar Cooler, two vertical mills for cement grinding as well as packing and loading system for trucks and rail wagons.

"Orient Cement is a well-known customer to FLSmidth. In 2007, we supplied the company with a pyro-processing system with a capacity of 4000t/day for a brownfield project. This new order from Orient Cement is based on a close and successful customer relationship and is furthermore a good example of FLSmidth's leading position in the Indian cement market," said Group Executive Vice President Per Mejnert Kristensen.

Denmark: FLSmidth has reported a 86% drop in its profit year-on-year to Euro5.77m for the first quarter of 2013, compared to Euro32.3m in 2012. The Danish engineering group blamed increased customer hesitation, market uncertainty and a lack of efficiency.

Its revenue increased by 17% to Euro758m in the first quarter of 2013 from Euro648m in 2012. However, order intake fell by 22% to Euro675m from Euro862m. Fewer large orders were signed in the fist quarter of 2013, while unannounced orders were stable. Earnings before interest, taxes, depreciation and amortisation fell by 28% to Euro43.9m from Euro61.2m.

In its interim results FLSmidth stated that corrective actions were being developed and would be publicised in its second quarter report along with measures from the new CEO.

Equatorial Guinea: FLSmidth has been awarded an order worth approximately Euro68m from Grupo Abayak AKOGA Cemento for the supply of a 3000t/day green field cement plant at Akoga in Equatorial Guinea. The contract includes supply of plant engineering and all main equipment, including jaw crusher, cone crusher, ATOX® raw mill, OK cement mill, pyroline with cross bar cooler, dosing systems, filters, packing plant and automation control system.

"Equatorial Guinea and the surrounding region have been relying on imported cement - thereby suffering from high prices and constraints. This plant will be serving the local market as well as neighbouring countries," said group executive vice president Per Mejnert Kristensen in a statement.

Grupo Abayak AKOGA Cemento is a newcomer to the cement industry but has been involved in multiple infrastructure projects in Equatorial Guinea. The order will be booked by the FLSmidth's cement division and contribute beneficially to the cement plant manufacturer's earnings until 2016.

Denmark: Danish cement plant manufacturer FLSmidth has reported that its profit fell by 9% to Euro175m in 2012 from Euro193m in 2011. However, its revenue rose by 21% to Euro3.33bn from Euro2.75bn. Earnings before non-recurring items, depreciation, amortisation and amortisation (EBITDA) rose by 9% to Euro370m from Euro339m.

FLSmidth commented that in 2012 in the cement industry, capacity utilisation outside China remained relatively subdued at around 75%. Overall, the global cement market was affected by macroeconomic uncertainty and slow growth, but there were several local areas, where the economy grew and where cement demand outpaced supply.

In its cement division FLSmidth reported a fall in revenue of 3% to Euro584m in 2012 from Euro565m in 2011. It commented that the global market for contracted new kiln capacity (excluding China) amounted to an estimated 40Mt/yr in in 2012, compared to 46Mt/yr in 2011. This is the lowest level since 2002 and FLSmidth stated that it expects the market for new cement kiln capacity to have hit 'bottom' in 2012.

"We expect 2013 to be a trough year in terms of EBITA margin – particularly in Cement and Mineral Processing, where execution times are typically up to two to three years. The explanation is simply that we will now be executing orders taken at trough margins during the years of global financial crisis. Fortunately, we have seen market conditions improve since then, and we therefore expect margins to increase again in 2014," commented CEO Jørgen Huno Rasmussen in his outlook for 2013.

Denmark: Danish cement plant manufacturer FLSmidth has signed a Euro125m loan agreement with the European Investment Bank (EIB). The five-year-bullet loan will finance FLSmidth's global research and development (R&D) programme within the cement industry during the period 2013-2016. The R&D programme will focus on development of innovative products, optimisation of energy efficiency and use of materials and fuel in the production process as well as reduction of harmful emissions.

"Through its focused R&D efforts FLSmidth aims at fulfilling its customers' future needs for innovative technical solutions, high reliability and availability, minimum environmental impact and the lowest possible lifecycle costs. This loan from the European Investment Bank supports these efforts," said Group Executive Vice President and CFO Ben Guren.

In its press release about the loan, FLSmidth noted that it places emphasis on the use of alternative fuels, reduced emissions and waste, improved heat recovery, lower power consumption, minimised water consumption, increased plant capacity, availability and operating efficiency and minimum safety risk.

Denmark: Danish cement plant manufacturer FLSmidth has announced that Jørgen Huno Rasmussen, aged 60, group chief executive officer (CEO) of FLSmidth since 2003 has decided to retire in the middle of 2013 after 10 years of service. Thomas Schulz will be appointed new group CEO of and is expected to take up his new position no later than 1 June 2013.

Schulz, aged 47, is a German citizen and has since 1998 been part of Sandvik (Svedala Industries), currently as President of Sandvik's Construction business area and member of Sandvik's Executive Management Group, based in Sweden. From 2005 to 2011 Schulz was based in Germany, Sweden and Singapore as president of Construction and senior vice president of Mining and Construction. Schulz holds a MSc and PhD in Engineering from the Technical University of Aachen, Germany with a dissertation in Mineral Mining and Quarrying.

"On behalf of the Board, I wish to express my sincere gratitude to Jørgen Huno Rasmussen for his decisive contribution to the successful turnaround and development of the FLSmidth Group and for his dedicated leadership over 10 years. I am sure Thomas Schulz will prove to be a worthy successor and look forward to welcoming him to FLSmidth", commented chairman of the board of FLSmidth, Vagn Ove Sørensen.

Russia: The Danish cement plant manufacturer FLSmidth has won a contract worth approximately Euro27m from the Russian company Kaluga Cement Plant LLC to supply additional equipment for its cement plant currently under construction in the Kaluga province, 300km southwest of Moscow. The contract is an extension of the contract that FLSmidth won in 2011 from Kaluga for the supply of a complete cement plant.

"The award of this order to FLSmidth underlines the strength of our good relations with the customer and the value of our long-standing local presence in Russia," said Group CEO Jørgen Huno Rasmussen. "The order is also a good example of the general signs of a positive development in the cement market."

Denmark: The Danish cement plant manufacturer FLSmidth & Co. A/S has continued strong growth in both revenue and order intake over the nine month period to 30 September 2012. The company's full year revenue guidance has been maintained, based on expectations of strong revenue generation in the fourth quarter.

In the third quarter of 2012 FLSmidth's order intake increased by 11% to Euro1.07bn from Euro962m in the third quarter of 2011. Revenue increased by 23% year-on-year to Euro847m from Euro688m and earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 6% to Euro95.1m from Euro89.7m. The profit for the period decreased by 6% to Euro50.6m from Euro54.1m in the third quarter of 2011.

Over the nine months to 30 September 2012 FLSmidth's order intake increased by 19% year-on-year to Euro2.90bn from Euro2.44bn and its order backlog increased by 13% to Euro4.18bn. Revenue for the nine months increased by 23% to Euro2.25bn. Nine month EBITDA was up by 16% to Euro204m. Profit for the period decreased by 3% to Euro113m.

FLSmidth has maintained its full year revenue guidance for continuing activities of Euro3.35-3.48bn. Cash flow from investing activities (exclusive of acquisitions and their subsequent capital expenditure needs) is expected to amount to Euro102.9m in 2012 due to investments in service supercentres and expansion of manufacturing in India and China.