First publishedon www.AggBusiness.com
Thomas Schulz, FLSmidth CEO
, the Denmark-headquartered global mining and cement industries equipment and services supplier, has revised its financial guidance for full-year 2019.
Revenue is now expected to be in the range of DKK 20-21bn (€2.67- 2.81bn) - previously expected to be in the higher end of the DKK 19-21bn range).
The EBITA margin is now expected to be around 8% (previously expected to be in the lower end of the 9-10% range).
Return on capital employed is now expected to be 10-12% (previously 12-14%).
In connection with the 2019 half-year results, FLSmidth specified that it expected the full-year EBITA margin to be in the lower end of the range of 9-10% due to "a different development in business mix".
FLSmidth Group CEO Thomas Schulz said: "We see good momentum in the service business, but parts of our Mining capital business are not delivering the planned margin. We have reviewed the project portfolio to ensure a better link between planned and executed margin going forward. A contributing factor has been the weakening business environment which has delayed customer decisions and added costs as it has been difficult to ensure satisfactory progress on some projects. At the same time, we experience that it is becoming increasingly difficult for miners to obtain licenses for new projects.
“Later in the year, we will inform about mitigating initiatives to improve business performance, which will include an acceleration of ongoing efforts to improve business performance."
FLSmidth will publish its Q3 interim report on 29 October 2019.