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 for FLSmidth & Co. A/S 1 January - 31 December 2014


Company Announcement to the Danish Financial Supervisory Authority No. 02-2015, 12 February 2015

The Board of Directors and the Executive Board have today considered and approved the Annual Report for the financial year 1 January - 31 December 2014.

The consolidated financial statements are presented in accordance with International Financial Reporting Standards as adopted by the EU. The parent financial statements are presented in accordance with the Danish Financial Statements Act. Further, the Annual Report is prepared in accordance with Danish disclosure requirements for listed companies.

The Annual Report is accessible at FLSmidth's website:

Group CEO Thomas Schulz, FLSmidth & Co. A/S says; "We deliver solid 2014 result in a challenged market. We increased profit by more than 1.5bn DKK and created a strong cash flow. Our mid to long term outlook is strong and we use the time now at the bottom of the industry cyclicality to trim and position FLSmidth for the coming upturn. Last, but not least, we are well prepared for a tough 2015 where we expect to improve our market position".

The main conclusions of the Annual Report are:
Revenue and earnings in line with Group guidance. Highest free cash flow in five years. Record high revenue in Customer Services. Additional efficiency and business right-sizing initiatives. Weak order intake, reflecting market conditions. Order intake expected to grow in 2015, supported by the new divisional structure. Proposed divided 9 DKK per share.

Financial results for 2014
The order intake decreased 15% to DKK 17,761m (2013: DKK 20,911m)

The order backlog decreased 15% to DKK 19,017m (2013: DKK 22,312)

Earnings before amortisation and impairment of intangible assets (EBITA) increased 56% to DKK 1,627m (2013: DKK 1,042m), corresponding to an EBITA margin of 7.7% (2013: 4.1%)

Earnings before interest and tax (EBIT) amounted to DKK 1,220m (2013: DKK -270m), corresponding to an EBIT margin of 5.8% (2013: -1.1%)

Profit/loss for the year increased to DKK 813m (2013: DKK -784m) including discontinued activities of DKK 44m (2013: DKK -56m)

Cash flow from operating activities amounted to DKK 1,298m in 2014 (2013: DKK -157m)

Net interest-bearing debt amounted to DKK 4,499m (end of 2013: DKK 4,718m)

Net working capital (including Cembrit) amounted to DKK 2,404m (end of 2013: DKK 2,382m). Net working capital (excluding Cembrit) amounted to DKK 2,164m, representing 10.2% of revenue at the end of 2014 (2013: 8.4% of revenue)

Return on Capital Employed (ROCE) increased to 11% (2013: 7%)

Financial results in Q4 2014
Cash flow from operations improved significantly as net working capital decreased in Q4. Revenue was in line with expectations, whereas margins declined sequentially in all divisions. Order intake disappointed due to global geo-political uncertainty.

The order intake decreased 33% to DKK 3,775m (Q4 2013: DKK 5,616m)

Revenue decreased 16% to DKK 5,911m (Q4 2013: DKK 7,046m)

Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 63% to DKK 483m (Q4 2013: DKK 297m), corresponding to an EBITDA margin of 8.2%
(Q4 2013: 4.2%)

Earnings before amortisation and impairment of intangible assets (EBITA) amounted to DKK 400m (Q4 2013: DKK 250m), corresponding to an EBITA margin of 6.8% (Q4 2013: 3.5%)

Earnings before interest and tax (EBIT) increased 187% to DKK 255m (Q4 2013: DKK 89m), corresponding to an EBIT margin of 4.3% (Q4 2013: 1.3%)

The gross profit amounted to DKK 1,282m (Q4 2013: DKK 1,290m)

Cash flow from operating activities amounted to DKK 739m (Q4 2013: DKK 77m)

The Board of Directors will propose to the Annual General Meeting that a dividend of DKK 9 per share (2013: DKK 2) be distributed for 2014. This is equivalent to a dividend yield of 3.3% (2013: 0.7%) and a pay-out ratio of 55% (2013:n/a).

Long-term financial targets for the four new divisions:
Growth (over the cycle)
Customer Services 5-10%
Product Companies 5-10%
Minerals 5-6%
Cement 3-5%

EBITA% (over the cycle)
Customer Services >15%
Product Companies 12-15%
Minerals 3-8%
Cement 3-8%

Net working capital as pct. of revenue
Customer Services 15-20%
Product Companies ~15%
Minerals Negative
Cement Negative

Long-term financial targets
Long-term financial goals for FLSmidth subject to normalised market conditions:

Annual growth in revenue above market average
EBITA margin 10-13%
ROCE*) >20%
Tax rate 32-34%
Financial gearing (NIBD/EBITDA) <2
Equity ratio >30%
Pay-out ratio 30-50% of the profit for the year

*) ROCE: Return on Capital Employed calculated on a before-tax basis as EBITA divided by average Capital Employed including goodwill.

Group guidance for 2015
In 2015, FLSmidth & Co. A/S expects a consolidated revenue of DKK 19-21bn (2014: DKK 21.1bn) and an EBITA margin of 9-10% (2014: 7.7%)

The return on capital employed is expected to be 12-14% in 2015 (2014: 11%)

The effective tax rate is expected to be 31-33% (2014: 36%) and cash-flow from investments is expected to be around DKK -0.4bn excl. acquisitions and divestments (2014: DKK -0.4bn)


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 Annual Report will be held today at 14:00 hours CET at the company's headquarters.

For further details please visit:

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