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[August 2005]
RHI Increases Half-Year Revenue and Profit
The RHI Group (Vienna, Austria) recorded good business and earnings development in the second quarter of 2005 with both divisions experiencing positive progress. RHI Refractories increased revenue by 11% world-wide in the reporting period while Heraklith improved revenue by 35.2%, the latter largely attributable to the consolidation of Eurovek and Termo at 1 February 2005.
Overall, RHI Group reported revenue of 711 million in the first half of 2005, up 12.5%. It also increased earnings significantly. EBITDA was 88.1 million (up 10.53%) and EBIT was 62 million (up 11.3%).
Profit before income taxes increased by 25%, from 39 million to 48.7 million as a result of a once again improved financial result. The higher profit before tax and further optimisation of income taxes based on the use of loss carryforwards, which was already evident in the financial statement of 2004, led to a group profit of 43.8 million in the first half (H1 2004: 18.1 million), up 142%.
RHI Refractories, the group's core business, contributed 596.8 million to H1 consolidated revenue, an increase of 9.6%. Refractories sales volume grew 3% to 856,000 tonnes. EBIT was 66.5 million, up from 60.7 million, and there was an EBIT margin of 11.1%, virtually unchanged from H1 2004's 11.2%. RHI noted that negative effects of the US dollar/euro exchange rate, which deteriorated by about 4% year-on-year, and higher raw materials costs were thus successfully compensated.
RHI said that earnings outlook for the group was positive: incoming orders in the first half 2005 exceeded the level of the previous year. The business volume of RHI Refractories would, added the company, stabilise at a high level, with the development of the steel cycle and the US dollar remaining important factors for business success. Heraklith (insulating division) would benefit from the final reorganisation of the participating interests in Slovenia and continue to improve earnings as compared to the previous year.
ENDS