FLSmidth, the Danish engineering firm, has revealed financial results for 2013 that show a loss of 784 million kroner despite revenue actually increasing by two percent to a record 26.9 billion kroner.
The firm cited huge one-time expenses connected to depreciation, staff reductions and warehouse closures as the primary reasons for deficit.
“In order to increase efficiency and adjust the capacity for market development, the leadership decided to set in motion a number of initiatives that have resulted in one-time expenses and negatively influenced yields and profits,” Thomas Schulz, the head of FLSmidth, told Børsen business newspaper.
Two billion decrease in two years
The firm’s negative financial results were further hampered by dwindling profits from its investment in the mining industry, which fell by 25 percent to 20.9 billion kroner from 27.7 billion kroner in 2012.
FLSmidth’s downturn in 2013 comes on the heels of a 2012 that saw it enjoy a positive financial result of 1.3 billion kroner.
In August 2013, the firm announced that it was planning to cut down its staff by 1,100 people worldwide over 18 months, including 140 in Denmark.