Improved financial performance in 2022 with Mining revenue growth of 29% and an … – Press Release

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COMPANY ANNOUNCEMENT NO. 5-2023
22 February 2023, Copenhagen, Denmark

 

Highlights in FY 2022

  • Mining service order intake growth of 37% and service revenue growth of 32%
  • Adjusted Mining EBITA margin of 10.6%1
  • Cement service order intake growth of 9% and service revenue growth of 12%
  • Cement continued its positive trend on improving profitability with a 3.3% EBITA margin
  • Positive cash flow from operations
  • Acquisition of Mining Technologies (ex-TK)2 completed
  • New Non-Core Activities segment established as of Q4 2022 with focus on full exit
  • Launch of new pure play strategies for Mining and Cement – CORE’26 and GREEN’26

Mining order intake increased 20% organically as a result of improved service activity compared to 2021. Including currency effects and the impact from the acquisition of Mining Technologies (ex-TK), order intake increased by 34%, comprising a 37% increase in service orders and a 30% increase in capital orders. Cement order intake increased 5% organically compared to 2021. Group order intake increased by 16% organically, driven by both Mining and Cement. Currency tailwinds and the acquisition of Mining Technologies (ex-TK) supported order intake in the quarter by 7% and 5%, respectively.

Group CEO, Mikko Keto, commented: “We kickstarted our pure play strategy transformation in 2022, and we have already seen positive effects from some of the implemented changes during 2022. Throughout the year, our legacy FLSmidth Mining business showed a sustained strong growth in order intake and revenue especially due to improved Service activity. Cement has shown a stable performance and continued the positive trend of improving profitability, and thereby returned to positive EBITA. As a result of this, we delivered an improved performance in 2022 with Mining and Cement revenue growth of 29% and 7% over 2021, respectively. Revenue and EBITA margin for the Group, Mining, Cement and Non-Core Activities all ended in line with our latest FY 2022 guidance.”

Financial performance…

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