Shares in FLSmidth jumped more than 8% on Thursday after the mining equipment and cement maker reported strong third quarter results, boosted by higher commodity prices.
Revenue rose 22% to 4.7 billion Danish crowns ($730.85 million), above an average forecast of 4.2 billion crowns among analysts in a Refinitiv poll.
The main driver behind the recovery in the mining industry is soaring demand for raw materials to make electric cars, wind turbines and solar panels, said Chief Executive Thomas Schulz.
“The demand in mining is driven by sustainability. It’s electrical mobility, green energy, which all consume a lot of copper, a lot of iron, a lot of any other commodity,” Schulz told Reuters.
“Our customers make a lot of money now. They have a lot of investments in the pipeline, which is good,” he said.
The company reported 14% growth in order intake for the third quarter, driven by increased service demand, while earnings before interest, taxes and amortization rose 72% (EBITA), driven by both its mining and cement units.
Shares in FLSmidth traded up 7.25% at 0829 GMT.
Its cement business managed to turn a profit in the third quarter for the first time since early 2020.
“We are in a growth cycle, that is clear,” Schulz said.
Schulz will step down as CEO on Jan 1, the firm announced late on Wednesday. He will be replaced by internal candidate Mikko Keto, current president of the company’s mining unit.
($1 = 6.4309 Danish crowns)
(By Nikolaj Skydsgaard; Editing by Gareth Jones)
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