Denmark s FLSmidth has joined its Nordic peers Sandvik and Atlas Copco in announcing weak results as the global mining slowdown continues to impact equipment suppliers and engineering firms.
FLSmidth on Friday reported a 40% drop in second-quarter operating profit and announced it is shedding 1,100 jobs, around 7% of its total global workforce, and closing offices and facilities.
Miners around the world are under intense pressure to cut costs as they contend with volatile commodity prices, rising wages, labour unrest and lower-grade ores and capital spending has shrunk accordingly.
Reuters reports FLSmidth Chief Executive Thomas Schulz, who took the reins on April 1, told a conference call with analysts: "We expect mining capex will hit bottom in 2014,"
