DOW JONES NEWSWIRES
(Dow Jones Newswires)-Danish supplier to the minerals and cement
industries FLSmidth Thursday reported a first quarter net profit of
DKK171 million down from DKK234 million in the year-ago period,
failing to beat the DKK292 million consensus estimate, and repeated
its outlook for 2011 with expectations of a consolidated revenue of
DKK21 billion to DKK22 billion with an Ebit ratio of about 9% to
10%.
MAIN FACTS:
-"The lower revenue in 1Q is a consequence of time variations in
revenue and is expected to be overcome during 2011," the company
said.
-"In 2011, the global market for new contracted cement kiln
capacity (exclusive of China) is expected to be approximately 65
million tonnes per year, of which India is expected to account for
approximately 20 million tonnes per year," the company said.
-"2011 is expected to see an increasing intake of large cement
orders compared to 2010 measured in DKK," the company said, adding
that 2011 is not likely to generate the same high order intake of
operation and maintenance contracts as 2010.
-"Based on the current market prospects 2011 is expected to see
increasing investments in the minerals industry, and this is
expected to result in an increasing intake of both small and large
orders plus Customer Services orders," the company said.
-The current situation in several North African countries causes
delays in ongoing projects and adds to uncertainty in the short
term, but this does not change FLSmidth's long-term expectations
for the region, the company said.
-There are signs that the Russian cement market is becoming
active again, the company said.
-"The foreign exchange effect of translating into DKK has had a
3% positive impact on revenue compared to 1Q 2010," the company
said.
-1Q revenue was DKK4.39B, down from DKK4.49B in 1Q 2010, below
analysts expectations of DKK4.81B.
-1Q Ebit was DKK305M, down from DKK359M in 1Q 2010, below
analysts' expectations of DKK359M.
-Wednesday shares in FLSmidth ended at DKK445.10.
-By Jens Hansegard, Dow Jones Newswires; +46-8-5451-3095;
jens.hansegard@dowjones.com
