FLSmidth has announced its mineral processing and material handling business continue to suffer from the drop in mining CAPEX – but remain in line with expectations.
In the materials handling sector, order intake was down 30% in Q1 2014 compared to the same period last year as the market “continues to be impacted by the cyclical downturn in mining investments”, the company said in its earnings report. Guidance for full year earnings remain at DKK 3.5 – 4.5 billion.
Mineral processing orders were down 18% on Q1 2013 with revenue down 24%. Coal remains particularly depressed, while the company reported more positive activity in the gold and copper industries. Guidance for full year earnings remains at DKK 5.5 – 6.5 billion.
Overall, revenue and earnings were “as expected”, the company noted.
Written by Jonathan Rowland