FLSmidth Falls as Danske See Fewer Orders: Copenhagen Mover
FLSmidth & Co. A/S (FLS) fell in Copenhagen trading after Danske Bank A/S told investors to sell Europe’s biggest maker of cement production plants after new orders sank 70 percent in the fourth quarter.
FLSmidth dropped as much as 0.7 percent, making the stock the third-largest loser in the Nasdaq OMX Copenhagen 20 index, which gained 0.2 percent. The stock declined 0.6 percent to 333.70 kroner at 10 a.m. in the Danish capital, with trading volume at 14 percent of the three-month daily average.
FLSmidth has announced new cement orders for about 200 million kroner ($35 million) in the fourth quarter, according to Danske. That compares with 667 million kroner in the previous three-month period. Danske today lowered its 2013 forecast for earnings before interest and tax as well as repeating an earlier recommendation to sell.
“We stick to sell on FLS and lower our EBIT estimates by 1 percent to reflect a slightly weaker order intake estimate in cement,” Kenneth Leiling, an analyst with Copenhagen-based Danske, said in the note. He also lowered 2013 estimates for revenue and for earnings per share by about 1 percent.
FLSmidth reported in November a 56 percent decline in third-quarter order intake for its cement unit, which has become the smallest of Copenhagen-based engineering group’s four divisions.
Danske said that FLSmidth’s mining equipment unit will suffer from “a slowdown rather than an implosion” of new orders this year and the next after December turned out to be “a good month” for the industry.
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