FLSmidth scraps financial targets after Q4 profit just beats forecast

Image: FLSmidth

Mining equipment maker FLSmidth said on Wednesday it was withdrawing its mid-term and long-term financial targets, after posting fourth-quarter profits slightly above forecasts.

The firm said fundamentals for the mining industry remained positive, while over-capacity in the cement industry had put pressure on cement producers, further accelerated by the pandemic.

“Consequently, it has been decided to withdraw the mid- and long- term financial targets,” the firm said in a statement.

Operating profit (EBITA) at the Danish firm fell to 235 million Danish crowns ($38.31 million) from 487 million a year ago. Analysts had on average expected a profit of 207 million, according to Refinitiv data.

The company said its targets for capital structure, including financial gearing, equity ratio and dividend policy remained unchanged.

($1 = 6.1338 Danish crowns)

(By Helena Soderpalm; Editing by Simon Johnson)

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