Employees at Plant in Dubai

Financial Objectives

Here you can find FLSmidth's short and long-term financial guidance.

Prospects for 2011 (unchanged)

The expectations for the cement market in 2011 are 65m tonnes per year new contracted cement kiln capacity worldwide (exclusive of China)


In 2011, FLSmidth & Co. expects a consolidated revenue of DKK 21-22bn and an EBIT ratio of approximately 9-10%

 

For the individual business areas, the prospects for 2011 are as follows:

 

                   Revenue              EBIT ratio

Cement       DKK 9-10bn             9-10%

Minerals       DKK 10-11bn           10-11%

Cembrit       approx. DKK 1.4bn   approx. 4%

 

The effect of purchase price allocations regarding GL&V Process is expected to amount to approximately DKK -90m in 2011 in the form of amortisation of intangible assets

 
In 2011, the effective tax rate is expected to be around 30%

Cash flow from investing activities (inclusive of acquisitions) is expected to be around DKK -900m in 2011

Long-term Financial Objectives (unchanged)

It is expected that particularly urbanisation and industrialisation in emerging markets will generate increasing demand for cement and minerals. In addition, there are a number of other structural conditions which are expected to result in increasing investments in the mining industry; they include underinvestment over a number of years, and the fact that the quality and accessibility of unexploited ore deposits are decreasing, thereby contributing to a higher demend for minerals handling and extraction equipment.

 

The long-term sustainable level for addition of new global cement kiln capacity (exclusive of China) is expected to be 60-75m tonnes per year on average.

Earnings from Customer Services in both Cement and Minerals over the coming years are expected to account for a rising proportion of the Group's total earnings. This also applies to the Minerals segment as a whole. In the light of these facts the Group stukk expects its EBIT ratio to be 10-12% in periods of high activity and 8-9% in periods of low activity, bearing in mind that FLSmidth's business is of a late cyclical nature.

The effect of purchase price allocations regarding GL&V Process is in future expected to be around DKK -100m per year.

In years to come, the annual investments (exclusive of acquisitions) are expected to be in the range of DKK 400-500m (previous expectation DKK 300-400m). In 2011, however, they are expected to amount to DKK 900m as a result of investmets in Service Super Centres and manufacturing facilities in China and India.

  • Investor Relations

    Pernille Friis Andersen
    Head of Corporate Communications & Investor Relations
    Tel: +45 3618 1887
    pefa@flsmidth.com
  • Investor Relations

    Investor Relations
    Tel: +45 3618 1800
    corpir@flsmidth.com

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