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