FLS Industries A/S - Interim report 1 January - 30 June 2002

| Source: FLSmidth A/S FLSmidth A/S

The Board of Directors of FLS Industries A/S has today reviewed and adopted the report and accounts for the first six months of 2002. The full report is accessible via the Internet at

http://www.flsindustries.com/investor/fls_reports.htm


The main conclusions are as follows:
  • The FLS Group's earnings before interest and tax (EBIT) were DKK -123m (2001: DKK 6m). Net earnings for the period amounted to DKK -777m and were significantly influenced by an accounting loss from the sale of shares in NKT Holding.

  • Cash flow from operating activities amounted to DKK 771m - an improvement of almost DKK 1.1bn on the year before, after adjustment for dividend from NKT Holding in 2001.

  • The FLS Group's interest-bearing debt amounted to DKK 3.6bn (DKK 5.7bn).

  • The order intake for the first half-year in engineering activities was DKK 4.9bn (DKK 4.6bn). The FLS Group's turnover was DKK 8.4bn (DKK 9.0bn).

  • The F.L.Smidth Group's order intake and its half-year earnings before interest and tax (EBIT) of DKK 31m (DKK -103m) were in accordance with expectations.

  • FLS Building Materials recorded earnings before interest and tax of DKK 150m (DKK 111m).

  • For FLS Aerospace, despite signs of improvement in the aircraft maintenance industry, a change in principles regarding write-down of stocks resulted in unsatisfactory earnings before interest and tax (EBIT) of DKK -26m (DKK 105m) for the first half-year.

  • A comprehensive restructuring of FLS miljø was completed. Unsatisfactory order processing performance resulted in unsatisfactory earnings before interest and tax (EBIT) of DKK -223m (DKK -66m).

  • The FLS Group's earnings forecast for the F.L.Smidth Group and FLS Building Materials remains unchanged.

  • Due to the disclosure of more uncertainty factors than expected during project processing, FLS miljø has significantly revised its forecast for the year 2002 to a substantial loss.

  • Due, among other things, to a revaluation of parts of the consumables stock, FLS Aerospace has downgraded its forecast for 2002 from a slight profit to a loss, albeit up on 2001.

  • The forecast for the FLS Group's overall earnings before interest and tax (EBIT) has been adjusted to a positive figure, but below that of last year (2001: DKK 0.2bn) at a turn-over of around DKK18m.

  • The FLS Group is presenting a new value creation strategy which focuses on the F.L.Smidth Group and FLS Building Materials.

  • Effective 31 August, Peter Assam will resign as Group President & CEO at his own request.

  • At 1 September Corporate Management will comprise Birgitte Nielsen (CFO), Frank Gad, Bjarne Moltke Hansen and Preben Tolstrup.


    FLS Industries A/S
    Corporate Public Relations