FLSmidth has highlighted the difficult conditions faced in the mining and coal markets in its Q3 results. Its outlook for coal has particularly deteriorated, leading to a writedown of Ludowici-related assets. FLSmidth acquired the Australian producer of coal preparation equipment last year for AU$ 388 million but has now booked a DKK 880 million impairment charge on the investment.
“China and a growing number of emerging market economies are coming off cyclical peaks. However, the fear of a hard landing in China and a resulting commodity collapse has diminished and most commodity prices are on a par with or above the levels one quarter ago. This is by no means to indicate that the mining downturn is over. The current business environment is challenging and it is too early to write off the risk of a further deteriorating market,” the company said in its report.
Adapted from press release by Jonathan Rowland
Read the article online at: https://www.worldcoal.com/coal/06112013/coal_flsmidth_writes_down_ludowici_investment_as_coal_market_suffers_coalnews/