FLSmidth slumps as Q1 mining unit revenues disappoint

FLSmidth & Co. A/S

15/05/2024 08:53

** Shares in Danish engineering group FLSmidth  FLS.CO  fall
2.7% after Q1 results miss market expectations, hit by lower
mining revenues
    ** It reports a 14% yoy drop in Q1 mining revenue, or a
decrease of 11% when excluding currency effects
    ** Sydbank analyst Mikkel Emil Jensen says that while
"profitability is improving for FLSmidth, revenue and earnings
are lower than expected in the Mining division"
    ** The company says it continues to observe a stable service
market in the mining business, while softness in the products
market persists
    ** "It is also appropriate to look at the recent share
performance, which has been strong – so the market have been
factoring in some strong results," Jensen adds
    ** The stock is up around 30% YTD including Wednesday's drop

 (Reporting by Elviira Luoma)
 ((E;lviira.luoma@thomsonreuters.com))