FLSmidth Q2 EBIT hit by one-off writedown
COPENHAGEN Aug 15 (Reuters) - Danish engineering group FLSmidth reported a drop in operating profits for the second quarter on Wednesday against expectations of an increase, hit by a one-off writedown and weak results in its bulk materials business.
Earnings before interest and tax fell to 349 million Danish crowns ($57.78 million) in April-June from 404 million in the second quarter last year, against analysts' average expectation of a rise to 505 million in a Reuters poll.
The result, which was hit by a 188 million crowns writedown on capitalised research and development, missed all estimates in the poll which had ranged from 432 million to 590 million crowns.
FLSmidth cut guidance for its 2012 EBIT margin to a range of 8-9 percent from an earlier forecast of 9-10 percent, but maintained guidance for its margin on earnings before interest, tax and amortisation (EBITA) of at least 10 percent.
"Expectations to Bulk Materials have been downgraded and risk associated with the margin guidance has increased due to short term macroeconomic uncertainty," FLSmidth & Co A/S said in a statement. ($1 = 6.0406 Danish crowns) (Reporting by Copenhagen newsroom)