Denmark: FLSmidth has continued to report disruption to order intake, revenue and earnings due to the coronavirus pandemic. Its nine-month revenue from cement sector supply and service contracts were US$680m, down by 28% year-on-year from US$940m in the first nine months of 2020. The cement division’s loss before interest, taxation and amortisation (LBITA) was US$14.1m, compared to earnings before interest, taxation and amortisation (EBITA) of US$50.7. Its gross order intake fell by 39% to US$569m from US$932m. However, order intake in the third quarter of 2020 improved from the second quarter of the year.
The company said, “Across regions, around 95% of cement plants were back in operation at the end of the third quarter of 2020, but many plants continue to run at reduced capacity. As economic growth is one of the most important drivers for cement demand, our customers are highly sensitive to market fluctuations and typically respond through hesitation and cash preservation.” It added, “We are taking additional steps to simplify our cement business and adjust our cost structure. These activities include less in-house manufacturing and more sourcing from local suppliers as well as a reduction of the project organisation.”