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[January 2006]
RHI Receives US$20 Million from Honeywell
Honeywell International Inc has paid US$20 million to RHI Refractories Holding as agreed by contract, after NARCO, a company currently operating under US Chapter 11 and deconsolidated by RHI at the end of 2001, submitted an adjusted plan of reorganisation, which was accepted by Honeywell, to the court in Pittsburgh, PA, USA.
Honeywell contractually agreed in early 2002 to pay a total of US$60 million to RHI once certain requirements related to NARCO's Chapter 11 proceedings were met. The remaining US$40 million are due when the Chapter 11 proceedings of NARCO are completed successfully. From the current perspective, this is expected for 2006.
The US$20 million payment, which corresponds to nearly 17 million euro, will be accounted for in RHI's earnings before interest and taxes (EBIT) 2005. Overall, the RHI Group's EBIT 2005 - including this payment - is currently expected to be slightly below the prior year figure of 135.6 million euro. EBIT of the Refractories division (RHI Refractories) 2005 will decline on 2004 due to increased energy and raw material costs. EBIT from the Insulating division will exceed 2004 significantly. Holding/other remain at the 2004 level.
Thus, RHI's profit after income taxes is expected to be slightly below the figure for the previous year.
Following a temporary decline in the third quarter, said RHI on 30 December 2005, the level of incoming refractories orders has now substantially improved again. Based on the successful implementation of price increases to cover further increased raw material and energy costs, RHI said it was aiming at double-digit EBIT margin in 2006.
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ENDS