FLSmidth released financial results for full-year 2022 and the fourth quarter of 2022, highlighting the continued positive trend its Cement business had on improving profitability with a 3.3% EBITA margin during the year.
Cement order intake increased 5% organically in 2022 compared to 2021. Group order intake increased by 16% organically, driven by both Mining and Cement businesses.
“Cement has shown a stable performance and continued the positive trend of improving profitability, and thereby returned to positive EBITA. As a result of this, we delivered an improved performance in 2022 with Mining and Cement revenue growth of 29% and 7% over 2021, respectively,” said FLSmidth CEO Mikko Keto. “Revenue and EBITA margin for the group, Mining, Cement and Non-Core Activities all ended in line with our latest FY 2022 guidance.”
For the full year, Cement revenue increased 2% organically and by 7% including favorable currency effects. During the fourth quarter, Cement revenue decreased by 14% organically compared to Q4 2021, due to supply chain challenges and a strong comparison quarter. Including currency effects, Cement revenue decreased by 11% in the quarter.
Cement order intake in the fourth quarter of 2022 decreased by 20% organically. Including currency effects, the Cement order intake in the quarter decreased by 17%, mainly explained by a 37% decrease in capital order intake compared to prior-year period.
Looking at 2023, FLSmidth said, “Short-term outlook for the cement industry remains impacted by overcapacity and the potential recession is expected to impact market demand negatively over the coming period.”