Full year 2024 financial guidance updated; Mining revenue guidance lowered, driven by Products, while the Adjusted EBITA margin guidance for both Mining and Cement is raised as a result of strong strategy execution
COMPANY ANNOUNCEMENT NO. 9-2024
7 August 2024, Copenhagen, Denmark
Full year 2024 financial guidance updated; Mining revenue guidance lowered, driven by Products, while the Adjusted EBITA margin guidance for both Mining and Cement is raised as a result of strong strategy execution
Today, FLSmidth announces preliminary and unaudited financial results for Q2 2024 and H1 2024, and the financial guidance for the full year 2024 is updated.
The updated Mining revenue guidance reflects the expectation of lower revenue from the order backlog due to customer-driven delays affecting the execution and finalisation of certain legacy Products orders. The Adjusted Mining EBITA margin guidance is raised, reflecting continued business improvements, especially in the Service business, as well as our de-risking strategy.
The updated Adjusted EBITA margin guidance for Cement reflects a better-than-expected impact from the implementation of the service-oriented business model, our continued de-risking strategy and the ongoing business simplification.
It remains the expectation that the total loss of exiting the Non-Core Activities (NCA) segment will be around DKK 1.0 billion (over the period since the establishment of the segment as of Q4 2022 until end of 2024). However, the updated NCA revenue guidance reflects that a lower share of the order backlog will now be executed and instead be terminated and/or re-scoped.
As consequence of the updated Mining, Cement and NCA guidance, the FLSmidth Group guidance for revenue, Adjusted EBITA margin and EBITA margin are updated accordingly. The updated FY 2024 Adjusted EBITA margin guidance for Mining and Cement gives us great confidence that we are well on track to meet our long-term ambitions for both Mining and Cement.
FLSmidth will, as previously communicated, release the detailed and unaudited financial results for the first half of 2024 on 15 August 2024.
Preliminary and unaudited key figures for Q2 2024 and H1 2024
| Mining | Cement | Non-Core Activities | Consolidated Group | |||||
| Q2 2024 | H1 2024 | Q2 2024 | H1 2024 | Q2 2024 | H1 2024 | Q2 2024 | H1 2024 | |
| Revenue, DKK | 3.8bn | 7.4bn | 1.1bn | 2.3bn | 44m | 94m | 5.0bn | 9.8bn |
| Adj. EBITA margin | 13.1% | 12.3% | 9.6% | 8.6% | 10.2% | 9.7% | ||
| EBITA margin | Loss of DKK 99m | Loss of DKK 161m | 8.7% | 8.1% | ||||
| Order intake, DKK | 3.4bn | 7.6bn | 1.0bn | 2.0bn | 7m | 37m | 4.4bn | 9.7bn |
The adjusted Mining EBITA margin includes an adjustment for transformation and separation costs of DKK 63m and DKK 104m for Q2 2024 and H1 2024, respectively. The adjusted Cement EBITA margin includes an adjustment for transformation and separation costs of DKK 12m and DKK 49m for Q2 2024 and H1 2024, respectively.
Financial guidance for FY 2024
Our updated financial guidance for the full year 2024 reflects the ongoing business simplification and transformation efforts, continued improvement in the core Mining business, realisation of the full cost synergies from the Mining Technologies acquisition, continued profitability progress in the Cement business and the ongoing exit from the Non-Core Activities segment.
| Mining | Cement | Non-Core Activities | Group |
| Revenue (DKKbn) ~15.5 (16.0-17.0) | Revenue (DKKbn) 4.0-4.5 (unchanged) | Revenue (DKKm) 200-300 (250-350) | Revenue (DKKbn) ~20.0 (20.0-21.5) |
| Adj. EBITA margin 12.5-13.0% (11.5-12.5%) | Adj. EBITA margin 8.0-9.0% (5.5-6.5%) | Adj. EBITA margin 10.0-11.0% (9.0-10.0%) | |
| EBITA (DKKm) Loss of 200-300 (unchanged) | EBITA margin 8.5-9.5% (7.5-8.5%) |
Note: Numbers in brackets represent prior guidance as provided on 15 May 2024 in Company Announcement No. 8-2024.
Mining
We expect the mining service market to remain stable, whereas the products market remains soft due to persistent hesitation by some customers on larger investment decisions. Longer term, the mining industry continues to benefit from a positive outlook for minerals crucial to continued global economic development and a successful green energy transition.
The guidance for the adjusted EBITA margin includes an adjustment for transformation and separation costs of around DKK 200m for the full year 2024. The adjusted EBITA margin is impacted by the realisation of the full cost synergies from the Mining Technologies acquisition, cost base inflation and re-investment of parts of the synergies into key commercial areas to support our CORE’26 strategy and to fuel our long-term growth ambitions.
Cement
We expect the short-term outlook for the cement industry to remain impacted by macroeconomic uncertainty. The guidance for revenue and adjusted EBITA margin reflects the ongoing execution of the ‘GREEN’26’ strategy, continued business simplification and product portfolio pruning, including the completed sale of the MAAG business in Q1 2024. Further, the guidance for adjusted EBITA margin includes an adjustment for transformation and separation costs of around DKK 100m for the full year 2024.
Non-Core Activities
The guidance for revenue reflects continued execution of the order backlog and contract negotiations aimed at reducing the scope of the remaining Non-Core Activities order backlog. The EBITA margin guidance reflects the operational loss-making nature of the business as well as costs related to finalising the exit of the business segment by end of 2024.
Consolidated Group
The Consolidated Group guidance reflects the sum of the guidance for the three business segments. The guidance for 2024 is subject to uncertainties stemming from the current macroeconomic and geopolitical environment.
Contacts:
Investor Relations
Jannick Lindegaard Denholt, +45 21 69 66 57, jli@flsmidth.com
Andreas Escherich Holkjær, +45 24 85 03 84, andh@flsmidth.com
Therese Möllevinge, +45 41 37 16 38, tmo@flsmidth.com
Media Relations
Rasmus Windfeld, +45 40 44 60 60, rwin@flsmidth.com
About FLSmidth
FLSmidth is a full flowsheet technology and service supplier to the global mining and cement industries. We enable our customers to improve performance, lower operating costs and reduce environmental impact. MissionZero is our sustainability ambition towards zero emissions in mining and cement by 2030. We work within fully validated science-based targets, have a clear commitment to improving the sustainability performance of the global mining and cement industries and aim to become carbon neutral in our own operations by 2030. www.flsmidth.com.
Attachment
Subscribe to releases from GlobeNewswire by notified
Subscribe to all the latest releases from GlobeNewswire by notified by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from GlobeNewswire by notified
Iveco Group signs a 150 million euro term loan facility with Cassa Depositi e Prestiti to support investments in research, development and innovation11.6.2024 12:00:00 CEST | Press release
Turin, 11th June 2024. Iveco Group N.V. (EXM: IVG), a global automotive leader active in the Commercial & Specialty Vehicles, Powertrain and related Financial Services arenas, has successfully signed a term loan facility of 150 million euros with Cassa Depositi e Prestiti (CDP), for the creation of new projects in Italy dedicated to research, development and innovation. In detail, through the resources made available by CDP, Iveco Group will develop innovative technologies and architectures in the field of electric propulsion and further develop solutions for autonomous driving, digitalisation and vehicle connectivity aimed at increasing efficiency, safety, driving comfort and productivity. The financed investments, which will have a 5-year amortising profile, will be made by Iveco Group in Italy by the end of 2025. Iveco Group N.V. (EXM: IVG) is the home of unique people and brands that power your business and mission to advance a more sustainable society. The eight brands are each a
DSV, 1115 - SHARE BUYBACK IN DSV A/S11.6.2024 11:22:17 CEST | Press release
Company Announcement No. 1115 On 24 April 2024, we initiated a share buyback programme, as described in Company Announcement No. 1104. According to the programme, the company will in the period from 24 April 2024 until 23 July 2024 purchase own shares up to a maximum value of DKK 1,000 million, and no more than 1,700,000 shares, corresponding to 0.79% of the share capital at commencement of the programme. The programme has been implemented in accordance with Regulation No. 596/2014 of the European Parliament and Council of 16 April 2014 (“MAR”) (save for the rules on share buyback programmes set out in MAR article 5) and the Commission Delegated Regulation (EU) 2016/1052, also referred to as the Safe Harbour rules. Trading dayNumber of shares bought backAverage transaction priceAmount DKKAccumulated trading for days 1-25478,1001,023.01489,100,86026:3 June 20247,0001,050.597,354,13027:4 June 20245,0001,055.705,278,50028:6 June20243,0001,096.273,288,81029:7 June 20244,0001,106.174,424,68
Landsbankinn hf.: Offering of covered bonds11.6.2024 11:16:36 CEST | Press release
Landsbankinn will offer covered bonds for sale via auction held on Thursday 13 June at 15:00. An inflation-linked series, LBANK CBI 30, will be offered for sale. In connection with the auction, a covered bond exchange offering will take place, where holders of the inflation-linked series LBANK CBI 24 can sell the covered bonds in the series against covered bonds bought in the above-mentioned auction. The clean price of the bonds is predefined at 99,594. Expected settlement date is 20 June 2024. Covered bonds issued by Landsbankinn are rated A+ with stable outlook by S&P Global Ratings. Landsbankinn Capital Markets will manage the auction. For further information, please call +354 410 7330 or email verdbrefamidlun@landsbankinn.is.
Relay42 unlocks customer intelligence with a new insights and reporting module, powered by Amazon QuickSight11.6.2024 11:00:00 CEST | Press release
AMSTERDAM, June 11, 2024 (GLOBE NEWSWIRE) -- Relay42, a leading European Customer Data Platform (CDP), is leveraging Amazon QuickSight to power its new real-time customer intelligence, reporting, and dashboard module. Harnessing the breadth and quality of customer data, the new Insights module empowers marketing teams to dive deep into customer behaviors and gain invaluable insights into the performance of their marketing programs across all online, offline, paid, and owned marketing channels. Preview of the Relay42 Insights module, in pre-beta version Key capabilities of the Relay42 Insights module include: Deep insights into customer behaviors: With the Relay42 Insights module, marketers can ask unlimited questions about their data and gain a deeper understanding of how to serve their customers more effectively. Simplicity with AI-powered querying: Marketers can use artificial intelligence to query their data using natural language search, reducing the reliance on data scientists. Us
Metasphere Labs Announces X Spaces Event on the Topic of Green Bitcoin Mining and Sound Money for Sustainability11.6.2024 10:30:00 CEST | Press release
VANCOUVER, British Columbia, June 11, 2024 (GLOBE NEWSWIRE) -- Metasphere Labs Inc. (formerly Looking Glass Labs Ltd., "Metasphere Labs" or the "Company") (Cboe Canada: LABZ) (OTC: LABZF) (FRA: H1N) is thrilled to announce an engaging Twitter Spaces event on Green Bitcoin mining, energy markets, and sustainability on July 3, 2024 at 2 p.m. ET. Follow us on X at MetasphereLabs for updates and to join the event. What We'll Discuss Bitcoin Mining Basics: Understand the fundamentals of Bitcoin mining.Energy Market Dynamics: Explore how Bitcoin mining interacts with energy markets.Sustainable Innovations: Learn about our efforts to promote sustainability in Bitcoin mining.Sound Money: Discover how tamper-proof currency can enhance stability.Efficient Payment Rails: See how fast, neutral payment systems support humanitarian projects.Carbon Footprint: Compare Bitcoin's environmental impact with traditional banking. "We're excited to host this event and dive into the critical topics of Bitcoin