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UPDATE 1-FLSmidth beats Q1 profit forecast, keeps full-year view
May 14, 2014 / 7:09 AM / 4 years ago

UPDATE 1-FLSmidth beats Q1 profit forecast, keeps full-year view

* Q1 EBIT 239 mln DKK vs 181 mln seen in Reuters poll

* First quarter order intake was “very positive” - CEO

* Revenue fell less than expected in the first quarter (Adds details, comments from CEO)

COPENHAGEN, May 14 (Reuters) - Danish engineering group FLSmidth & Co A/S posted a stronger than expected rise in first-quarter operating profit on Wednesday, but left its full-year forecast unchanged.

FLSmidth, which makes cement plants and gear for cutting, crushing and transporting metal ores, has been hit by a slump in spending by the global mining industry. Last year, it cut more than 1,200 jobs and posted its first annual net loss in a decade.

The group’s order intake grew by 4 percent in local currencies in the quarter to 4.84 billion Danish crowns ($888.74 million), above the 4.49 billion forecast by analysts in a Reuters poll.

“The order intake is very positive. It is a fantastic performance relative to the whole industry,” chief executive Thomas Schulz told Reuters.

Revenue fell by 11 percent in the first quarter, which was less than expected, to 5.30 billion crowns.

Operating profit rose to 239 million Danish crowns from 166 million crowns a year ago and above a forecast of 181 million crowns in the Reuters poll.

The group maintained its full-year forecast for revenue of between 21 billion and 24 billion crowns and a margin on earnings before interest, tax and amortisation (EBITA) of between 7 and 9 percent.

$1 = 5.4459 Danish Crowns Reporting by Teis Jensen; Editing by Greg Mahlich and Mark Potter

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