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[May 2005]
Increase in Sales for RHI Refractories
RHI Refractories, the core business of the RHI Group, contributed 284.7 million to consolidated revenue in the first quarter of 2005, up by 8.2% from the 263.2 million recorded in the first quarter of 2004. Refractories sales volume grew by 3.1% to 423,000 tonnes.
RHI Refractories reported EBIT of 32.1 million in Q1 2005 as against 29.1 million in Q1 2004 and an EBIT margin of 11.3% (Q1 2004: 11.1%). Negative effects of the US dollar/euro exchange rate, which deteriorated by about 6% year-on-year, and higher raw materials and energy costs were thus successfully compensated.
Business of the four regional steel business units continued to develop favourably in the first quarter. In Central and South America in particular, but also in Europe (including Eastern Europe and Russia) and North America, revenue of the previous year was surpassed. In Asia/Pacific, sales to the still growing steel industry rose. They were, however, negatively compensated by the persisting unfavourable US dollar/euro relation.
The industrial business units non-ferrous metals, cement & lime and environment, energy, chemicals exceeded last year's revenue level; attractive projects were won world-wide. Revenue of the glass business unit maintained the level of 2004.
RHI will strengthen its presence in Asia by extending its own capacities without, however, becoming overly dependent on market developments in China. In Q1 2005, a decision was taken to extend Chinese capacities to over 100,000 tonnes in Bayuquan and to another 100,000 tonnes in Dalian in two phases.
This means that more than 10% of RHI's world-wide output will come from China by the end of 2005. All available growth options in that region, i.e. extending RHI's own capacities, setting up joint ventures or taking over strong local specialists are under constant examination. In Europe, service business for refractory linings will be extended following the complete takeover of the German MARVO Feuerungs- und Industriebau GmbH.
RHI Refractories' headcount went up from 5,821 in Q1 2004 to 6.040 in Q1 2005.
ENDS