FLSmidth jumps after it reports Q4 beat, weighs Cement divestment

DKK

30/01/2024 09:02

** Shares in FLSmidth  FLS.CO  jump around 5% to three-week
high after the Danish engineering group reported Q4 results
above expectations and announced a potential divestment for its
Cement business
    ** FLSmidth announced it is exploring options to divest the
Cement business, which J.P.Morgan sees as "helpful for sentiment
around the future of the business leaving the potential for a
higher quality, mining pure-play"
    ** The company reported Q4 adjusted EBITDA margin of 8% and
revenue of DKK 6 billion ($871.22 million) vs DKK 5.8 billion
expected by analysts, according to LSEG data
    ** "Q4 beat our expectations on both sales and Adj. EBITA by
MSD% and HSD% respectively," JPM says
    ** The brokers notes also that costs relating the
acquisition of DKK 733 million were lower than previously
expected of DKK 800 million
    ** FLSmidth sees 2024 revenue of about DKK 20-21.5 billion
and adjusted EBITA margin of 9-10%
    ** FLSmidth's shares are on track for their best day in
almost three months


($1 = 6.8869 Danish crowns)

 (Reporting by Elsa Ohlen)
 ((elsa.ohlen@thomsonreuters.com;))