English
Published: 2013-02-12 07:58:32 CET
FLSmidth & Co. A/S
Annual Financial Report
Annual report for FLSmidth & Co. A/S 1 January - 31 December 2012
Company Announcement to the Danish Financial Supervisory Authority No.
03-2013,
12 February 2013



The Board of Directors and the Executive Management have
today considered and
approved the annual report of FLSmidth & Co. A/S for the
financial year 1
January - 31 December 2012.

The consolidated financial
statements are presented in accordance with
International Financial Reporting
Standards as adopted by the EU. The parent
financial statements are presented
in accordance with the Danish Financial
Statements Act.

Further, the annual
report is prepared in accordance with Danish disclosure
requirements for listed
companies.

The report is accessible at FLSmidth's
website:

http://www.flsmidth.com/reports


The main conclusions of the
annual report are:

Financial results in Q4 2012
Strong operating cash flow,
record high quarterly revenue and satisfactory
margins

The order intake
increased 4% to DKK 6,104m (Q4 2011: DKK 5,856m)

Revenue increased 16% to DKK
8,051m (Q4 2011: DKK 6,911m)

Earnings before interest, tax, depreciation and
amortisation (EBITDA) decreased
1% to DKK 966m (Q4 2011: DKK 978m),
corresponding to an EBITDA margin of 12.0%
(Q4 2011: 14.2%)

Earnings before
amortisation and impairment of intangible assets (EBITA)
decreased 4% to DKK
890m (Q4 2011: DKK 931m), corresponding to an EBITA margin
of 11.1% (Q4 2011:
13.5%)

Earnings before interest and tax (EBIT) decreased 8% to DKK 796m (Q4
2011: DKK
865m), corresponding to an EBIT margin of 9.9% (Q4 2011:
12.5%)

Earnings before tax (EBT) decreased 9% to DKK 767m (Q4 2011: DKK
843m)

The profit for the period decreased 19% to DKK 462m (Q4 2011: DKK
567m)

Cash flow from operating activities amounted to DKK 1,532m (Q4 2011: DKK
260m)


Financial results for 2012
Full-year guidance met: DKK 25bn revenue and
10.1% EBITA margin. Planned DKK
1bn cash distribution.

The order intake
increased 15% to DKK 27,727m (2011: DKK 24,044m)

The order backlog increased
9% to DKK 29,451m (end of 2011: DKK 27,136m)

Revenue increased 21% to DKK
24,849m (2011: DKK 20,538m)

Earnings before interest, tax, depreciation and
amortisation (EBITDA) increased
9% to DKK 2,759m (2011: DKK 2,528m)
corresponding to an EBITDA margin of 11.1%
(2011: 12.3%)

Earnings before
amortisation and impairment of intangible assets (EBITA)
increased 7% to DKK
2,502m (2011: DKK 2,347m), corresponding to an EBITA margin
of 10.1% (2011:
11.4%)

Earnings before interest and tax (EBIT) decreased 6% to DKK 1,988m
(2011: DKK
2,117m) corresponding to an EBIT margin of 8.0% (2011:
10.3%)

Earnings before tax (EBT) decreased 5% to DKK 1,927m (2011: DKK
2,038m)

Profit for the period decreased 9% to DKK 1,303m (2011: DKK
1,437m)

Cash flow from operating activities increased to DKK 1,720m (2011: DKK
1,148m)

Net interest-bearing debt (Group) amounted to DKK -3,084m (end of
2011: DKK
-98m)

Working capital (Group) amounted to DKK 1,950m (end of 2011:
DKK 1,620m)

Return on capital employed (ROCE) declined to 19% (2011:
23%)


Cash Distribution
The Board of Directors plans to make a total cash
distribution of DKK 1bn after
the Annual General Meeting on 5 April 2013 in the
form of:

-A proposed dividend of DKK 9 per share (2011: DKK 9) corresponding
to 36% of
the year's profit (2011: 33%) and a dividend yield of 2.8% (2011:
2.7%)
representing a total value of DKK 479m

-An extraordinary distribution in
the form of a share buy back program of DKK
521m


Outlook for 2013
In 2013,
FLSmidth & Co. A/S expects consolidated revenue of DKK 27-30bn (2012:
DKK 25bn)
and an EBITA margin of 8-10% (2012: 10.1%) for continuing activities.
Cembrit
is classified as assets held for sale and reported as
discontinued
activities.

The margin guidance includes costs of a one-off
nature, of around DKK -200m for
the Group in 2013 (2012: DKK -225m).

Cash flow
from investing activities (including acquisitions but excluding
disposals) is
expected to amount to the level of DKK -1bn in 2013 (2012: DKK
-3,640m).

The
effective tax rate is expected to be 32-34% in 2013 (2012: 34%).

Return on
Capital Employed (ROCE) is expected to be 15% in 2013 (2012: 19%)

2013 is
expected to be a trough year in terms of EBITA margin, whereas both cash
flow
from operating activities and order intake are expected to be satisfactory
in
2013.


The four divisions are expected to see the following developments in
2013:

Expected revenue
Customer Services: DKK 8-10bn
Material Handling: DKK
4-6bn
Mineral Processing: DKK 10-12bn
Cement: DKK 5-7bn

Expected EBITA
margin
Customer Services: 13-15%
Material Handling: >0%
Mineral Processing:
8-10%
Cement: 6-8%


Long-term financial targets
Long-term financial goals for
FLSmidth subject to normalised market conditions

Annual growth in revenue
above the market average
EBITA margin 10-13%
ROCE *) >20%
Tax rate
32-34%
Equity ratio >30%
Financial gearing (NIBD/EBITDA) <2
Pay-out ratio
30-50% of the profit for the year

*) ROCE: Return on Capital Employed
calculated on a before tax basis as EBITA
divided by average Capital Employed
including goodwill.

                  
-------------------------------------------

Please address any questions to
this announcement to Mr Jørgen Huno Rasmussen,
Group CEO, telephone +45 36 18
18 00.

An investor & press meeting and telephone conference regarding
the annual report
will be held today at 11:00 hours CET at the company's
headquarters.
For further details please visit
     www.flsmidth.com

http://www.flsmidth.com/en-
us/News+and+Press/News/2013/Invita
     tion+to+Q4+2012+investor+meeting




FLSmidth
& Co. A/S
Corporate Communications & Investor Relations


[HUG#1677312]

 


Annual Report 2012.pdf