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[August 2006]
RHI Half-Year Report 2006
RHI Group (Vienna, Austria) reported revenue in the amount of 666.8 million euro in the first half of 2006 (previous year, comparable to the new group structure 2006: 601.9 million euro), an increase of 10.8%. EBITDA amounted to 86.4 million euro (previous year: 75.9 million euro); EBIT, at 64.6 million euro (previous year: 56 million euro), was up 15.4% on the previous year.
Profit before income taxes rose by 17.6% to 51.4 million euro; profit from continuing operations (Refractories, other) was 46.2 million euro (previous year: 40.3 million euro). Profit from discontinued operations (Insulating) amounted to 60.8 million euro (previous year: 3.5 million euro); the RHI Group’s profit, at 107 million euro, reached an historic high in the first half of 2006, amounting to 2.5 times the figure of the previous year (43.8 million euro).The Refractories business continued to develop positively overall in the second quarter of 2006. Revenue exceeded the very good previous quarter by 6.7%; sales volume rose by 4.1%.The EBIT margin exceeded the target figure of 10% despite continuously rising raw material and energy costs. Price increases were implemented successfully. RHI Refractories reported revenue amounting to 660 million euro in the first half (previous year: 596.8 million euro), an increase of 10.6%. Refractories sales volume rose 5.2% to 900,000 tonnes. EBIT amounted to 67.7 million euro (previous year: 66.5 million euro); the EBIT margin was 10.3% (previous year: 11.1%).
The steel industry, RHI’s most important group of customers, increased crude steel output by almost 8% worldwide in the first half of 2006, adjusted for another substantial increase in China (+18%) by some 3%. Regionally, the production showed varied developments ranging from +12% in Asia (inc China), +5% in North America, +5% in Eastern Europe, +4% in the EU, to -4% in South America and -5% in Africa. RHI’s customer industries cement, lime, nonferrous metals, glass, environment, energy and chemicals overall also showed positive growth in capacity and production, with regional differences.
RHI said that, with its new focus on refractories, it has laid the strategic and operative foundations for a future geared to high earnings and cash flow. Forecasts for the RHI Group results in 2006 are positive, provided there are no unexpected cost, cyclical or exchange rate pressures. In addition to industrial cycles, especially in the steel industry, raw material and energy costs as well as monetary parity, business success is significantly influenced by the consolidation and modernisation of RHI’s client industries worldwide. Incoming orders and the good economic situation of RHI’s customer industries indicate a positive business development for refractories. RHI Refractories aims to reach a two-digit EBIT margin again in 2006 based on the successful implementation of price increases to cover further cost increases.
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ENDS