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[March 2007]
Preliminary Results 2006: RHI Group Profit at Record Level
RHI AG (Vienna, Austria) reported a group profit amounting to €157.9 million in 2006 (2005: €97.3 million), which contributed substantially to further improving equity in the consolidated balance sheet. Undiluted earnings per share amounted to €5.81 in 2006 (2005: €4.07), fully diluted earnings per share to €4.01 (2005: €2.55), up 57%.€97.1 million of the RHI Group's profit (2005: €82.8 million) were accounted for by continued operations with RHI's core business, Refractories; the discontinued Insulating operations (Heraklith Group) contributed a book profit of €60.8 million (2005: €14.5 million). The group said that since the sale of Heraklith in 2006, RHI has been focusing on its position as world market leader for high-grade refractories systems solutions; the restructuring of the group was completed successfully with the record results for 2006.
Net financial liabilities continued to fall considerably by 34% to €419.7 million in 2006 (2005: €636.4 million). This corresponds to the 2.3-fold EBITDA of the year 2006 and reflects the financial success of the reorganisation and the RHI Group's newly gained scope for profitable growth in refractories worldwide.
RHI's consolidated revenue (continued operations) rose by 11.4% to €1.3358 billion in 2006 (2005: €1.1994 billion). With this increase in revenue, RHI outperformed the growth rates of its client industries and the refractories market and expanded is position as the world market leader further. RHI's divisions Steel (+10.9%) and Industrial (+13.3%) continuously expanded their business in a good market environment and gained market share in important growth regions world-wide.
EBITDA in the RHI Group amounted to €179.5 million (2005: €156.4 million); EBIT was €133.8 million in 2006 (2005: €115.5 million), an increase of 15.8%. The EBIT margin increased to 10.0% (2005: 9.6%) although energy and raw material costs continued to rise.
All figures for 2006 are preliminary; the final results and RHI's consolidated balance sheet 2006 will be published after the balance sheet has been approved, on 25 April 2007.
RHI said that the outlook for 2007 was positive. Based on business development and the level of incoming orders, the refractories business is expected to develop well. There are good opportunities world-wide to expand market position and earnings power further in the coming years. RHI's objective is to increase revenue to €2 billion by 2010 through organic growth and targeted acquisitions and to raise its world market share to over 15%.
www.rhi-ag.com
ENDS