FLSmidth CEO Mikko Keto has welcomed a “stable and healthy” Q3 trading period for the Danish global cement and mining equipment and linked technology solutions giant.
“In the third quarter of 2024, we continued to see a stable and healthy Mining service market and a relatively softer Mining products market, and we expect these conditions to continue into next year,” said FLSmidth’s top executive. “The Mining business delivered an Adjusted EBITA margin of 13.3%, and we continue progressing towards our 2026 financial target. The long-term market outlook remains encouraging, exemplified by the recently signed strategic cooperation agreement for a new copper concentrator production line in Uzbekistan – a clear testament to the strength of our full flowsheet offerings and our proven global execution capabilities.”
Keto continued: “For Cement, the stable market conditions continue to provide good opportunities for the Service business, whereas we continue to de-risk the Products business to preserve profitability. In the third quarter of 2024, the Cement business achieved an Adjusted EBITA margin of 10.8%, demonstrating continued strong execution of higher-margin orders and release of provisions related to the completion of legacy projects. Overall, the third quarter showed continued progression in our transformation activities, leading to additional improvements in profitability. We have continued our dedicated efforts to implement a cost-efficient operating model and corporate structure. We believe we are well on track to end the year in line with our plans and ensure a good outset for the coming year.”
FLSmidth Mining order intake decreased by 14% compared to Q3 2023 (a decrease of 11% if excluding currency effects). Service order intake decreased by 6%, mainly driven by lower order intake within upgrades & retrofits and professional services, as well as our ongoing exit from basic labour services. The decline was partly offset by a relatively higher order intake for consumables, including a multi-year contract for the supply of mill liners to a customer in Australia. Product order intake decreased by 28%, reflecting the continued softness of the mining products market and the de-risking of our order backlog. One large order of DKK 340 million was announced in the quarter. Service and Products comprised 71% and 29% of the total Mining order intake in the quarter, respectively (compared to 65% and 35% in Q3 2023, respectively).
Cement order intake decreased by 31% compared to Q3 2023 (a decrease of 24% if excluding currency effects and effects from divestments). Service order intake decreased by 20%, largely due to the recent divestments and less favourable market conditions in Western Europe, especially the timing of booking certain larger service orders. Product order intake decreased by 53%, driven by the recent divestments, continued de-risking of the order intake, and exit from the project-oriented business. Service and Products comprised 78% and 22% of the total Cement order intake in the quarter, respectively (compared to 67% and 33% in Q3 2023).
