FLSmidth 2Q Net Profit +14%, Misses Consensus,Fiscal Year Tgts Confirmed

Danish industrial plant maker and services supplier FLSmidth & Co. A/S (FLS.KO) Thursday reported that its second-quarter 2011 net profit rose 14%, missing analysts views, and said its full-year results guidance is kept unchanged.

MAIN FACTS:

- FLSmidth said it still expects to generate full-year consolidated sales of between DKK21 billion and DKK22 billion, and a margin on earnings before interest and tax, or EBIT, of between 9% and 10%.

- In the second quarter, FLSmidth's net profit rose to DKK295 million, from DKK258 million in the year-earlier quarter, but fell short of the DKK337.7 million average estimate of seven analysts polled by Dow Jones Newswires.

- EBIT fell to DKK404 million in the quarter, from DKK478 million a year earlier, while the EBIT margin declined to 8.4%, from 9.7%.

- Sales fell 2.9% on the year in the three months to DKK4.80 billion , from DKK4.92 billion, missing by a wide margin analysts' forecast of DKK5.23 billion.

- FLSmidth said both its business segments, cement and minerals, performed well in the quarter, but sales suffered from time variations in revenue, which it expect to overcome during the second half of the year.

- In the first half of 2011, the company's order backlog declined by 13%, to 11.01 billion, due mainly to a decline in orders for the cement segment, which it attributed to the civil unrest in North Africa, which has put a number of large projects on hold.

- The order backlog rose to DKK25.01 billion in the first half, from DKK23.71 billion at the end of the first half of 2010.

 
-By Flemming Emil Hansen, Dow Jones Newswires; [phone]; [e-mail]