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FLSmidth Company Announcements

Interim Report for FLSmidth & Co. A/S 1 January - 31 March 2013

17.05.2013

Company Announcement to the Danish Financial Supervisory Authority No. 08-2013, 17 May 2013

The Board of Directors and the Group Management of FLSmidth & Co. A/S have today reviewed and approved the Interim Report for 1 January to 31 March 2013.

The Interim Report has been presented in accordance with IAS 34 and additional Danish information requirements regarding interim reporting of listed companies.
No review or auditing of the interim report has taken place.

The Interim Report is accessible at FLSmidth's website:

http://www.flsmidth.com/reports


The main conclusions of the Interim Report are:
Q1 is seasonally weak, and 2013 is no exception. Revenue increased 17% versus Q1 2012 whereas order intake was down 22%. Fewer large orders were signed in Q1, while unannounced orders were stable.

Guidance for 2013 is maintained, however skewed towards the lower end due to increased customer hesitation, market uncertainty and a certain lack of efficiency. Corrective actions are being developed and will in parallel with initiatives from the new CEO be communicated in connection with the Q2 report.

The earlier announced share buyback programme will be initiated now.

Financial results in Q1 2013
The order intake decreased 22% to DKK 5,027m (Q1 2012: DKK 6,421m)

The order backlog decreased 3% to DKK 28,583m (end of 2012: DKK 29,451m)

Revenue increased 17% to DKK 5,651m (Q1 2012: DKK 4,829m)

Earnings before amortisation and impairment of intangible assets (EBITA) decreased
38% to DKK 254m (Q1 2012: DKK 408m), corresponding to an EBITA margin of 4.5% (Q1 2012: 8.4%)

Earnings before interest and tax (EBIT) decreased 51% to DKK 166m (Q1 2012: DKK 341m), corresponding to an EBIT margin of 2.9% (Q1 2012: 7.1%)

The profit for the period decreased 86% to DKK 34m (Q1 2012: DKK 241m)

Cash flow from operating activities amounted to DKK -466m (Q1 2012: DKK -117m)

Net interest-bearing debt (excl. Cembrit) amounted to DKK -3,883m (end of 2012: DKK -3,183m)

Working capital (excl. Cembrit) amounted to DKK 2,335m (end of 2012: DKK 1,629m).

Return on capital employed (ROCE) declined to 17% in Q1 2013 (Q1 2012: 23%)

Guidance for 2013
FLSmidth & Co. A/S maintains expectations of consolidated revenue of DKK 27-30bn (2012: DKK 25bn) and an EBITA margin of 8-10% (2012: 10.1%).

Market uncertainty and customer hesitation has increased in recent months, which is expected to have an adverse impact on order intake and revenue in the remainder of the year, although tender activity remains high and the service activities show no signs of weakness. As a consequence, the guidance for 2013 is now skewed towards the lower end. Corrective actions are being developed and will in parallel with initiatives from the new CEO be communicated in connection with the Q2 report.

The margin guidance includes costs of a one-off nature of around DKK -200m for the Group in 2013 (2012: DKK -225m).

Cash flow from investing activities (including acquisitions but excluding disposals) is expected to amount to the level of DKK -1bn in 2013 (2012: DKK -3,6bn).

The effective tax rate is now expected to be 36% in 2013 (2012: 34%) due to withholding tax in Chile related to the integration of Ludowici (previous expectation 32-34%).

Return on Capital Employed (ROCE) is expected to be approximately 15% in 2013 (2012: 19%).

The four divisions are expected to see the following developments in 2013:

Expected revenue 
Customer Services        DKK 8-10bn 
Material Handling          DKK 4-6bn 
Mineral Processing       DKK 10-12bn 
Cement                        DKK 5-7bn 

Expected EBITA margin
Customer Services       13-15%
Material Handling          > 0%
Mineral Processing       8-10%
Cement                       6-8%

Please address any questions to this announcement to Mr Thomas Schulz, Group CEO, telephone +45 36 18 18 00.

An investor & press meeting and telephone conference regarding the Interim Report will be held today at 11:00 hours CET at the company's headquarters.
For further details please visit www.flsmidth.com.
http://www.flsmidth.com/en-US/News+and+Press/News/2013/Invitation+to+Investor+Meeting+Q1+2013

FLSmidth & Co. A/S
Corporate Communications & Investor Relations