Download Center

FLSmidth & Co. is a project and service focused engineering business with a unique global market position and strong potential for growth.

FLSmidth download center


Here you can read company announcements and press releases from FLSmidth.

FLSmidth Company Announcements

Annual Report 1 January to 31 December 2006 for FLSmidth & Co. A/S

Message to the Copenhagen Stock Exchange, No. 06 - 2007, 28 February 2007

The Board of Directors of FLSmidth & Co. A/S has today reviewed and adopted the Annual Report and accounts for January - December 2006. The Report is presented in accordance with International Reporting Standards, which is approved by the EU, and additional Danish disclosure requirements for annual reports of listed companies.
The full report is accessible via the Internet at:

The main conclusions 2006 (continuing activities) are as follows:
Financial performance
In 2006, FLSmidth & Co. saw satisfactory development of its turnover and earnings and had a historically high order backlog at the end of 2006
-Turnover rose by 20% to DKK 12,311m in 2006 up from DKK 10,250m in 2005
-Earnings before interest and tax (EBIT) rose by 95% to DKK 775m in 2006 up from DKK 398m in 2005
-Earnings before tax (EBT) rose by 80% to DKK 924m in 2006 up from DKK 512m in 2005
-Cash flow from operating activities dropped by 21% to DKK 1,372m in 2006 down from DKK 1,731m in 2005
-Order intake rose by 39% to DKK 18,534m in 2006 up from DKK 13,289m in 2005
-The order backlog amounted to DKK 18,264m at the end of 2006, as against DKK 10,834m at the end of 2005, corresponding to an increase of 69%,
The market situation
In 2006, activity has been historically high within all business segments. Activity is expected to remain high in 2007.
Cement: The global market for new contracted cement kiln capacity (exclusive of China) amounted to 140m tonnes per year in 2006 (2005: 75m tonnes per year), FLSmidth & Co.'s share of the market amounting to 29% (2005: 33%)
Minerals: The level of investment in the minerals industry was particularly high in 2006 due to a sustained large global demand for minerals.
Prospects for 2007 (continuing activities)
Sustained favourable business cycles and a continued high level of activity are expected for 2007.
-In 2007, FLSmidth & Co. expects a consolidated turnover of DKK 16-18.5bn, earnings before interest and tax (EBIT) at DKK 1.1-1.3bn and earnings before tax (EBT) at DKK 1.2-1.4bn.
-Cash flows from operating activities in 2007 are expected to amount to approximately DKK 600m, and investments (exclusive of acquisitions) are expected to be extraordinarily high and total approximately DKK 450m due to the general increase in capacity.
-2007 is expected to see an effective tax rate of around 30%.
-For the individual business areas, the prospects for 2007 are as follows:
Turnover DKK 10-12bn
EBIT ratio approx. 6%
Turnover DKK 5-5.5bn
EBIT ratio approx. 9%
Dansk Eternit Holding
Turnover approx. DKK 1.3bn
EBIT ratio approx. 8%
-The prospects of the Cement business for 2007 are based on an unchanged market share and a total market for new cement kiln capacity of 80-90m tonnes per year (exclusive of China). The prospects are also based on a change in product portfolio, as services and spare parts are expected to account for a relatively smaller part of turnover, and the share of turnkey contracts is expected to increase. Both changes will reduce the average EBIT ratio.
-In 2007-2008, the Group's overall EBIT ratio is expected to be 7-8%, depending on the breakdown of turnover into various products and business areas.
-In the longer term, earnings from Minerals will account for a relatively larger part of the Group's overall earnings, which will reduce the effects of any fluctuations in the cement market. Against this background, the Group's EBIT ratio in periods of low activity is expected to be only marginally below the expected EBIT ratio of 7-8% for the coming years.
FLSmidth & Co. A/S
Corporate Public Relations