RHI Magnesita

RHI Group increased revenues and profit in the first nine months 2011

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quarterly report

Wien (euro adhoc) - In the first three quarters of the year 2011, the RHI Group
increased revenues by 14.1% in comparison with the same period of the previous
year. The operating result amounts to EUR 108.4 million, up roughly EUR 1.1
million on the 2010 reference period. 

In the third quarter of 2011, revenues declined by 1.7% in comparison with the
second quarter of 2011 due to the traditionally weaker steel business in the
summer months and the seasonal effect in the cement industry. The operating
result dropped 2.0% to EUR 39.2 million and the operating result margin of 9.1%
is slightly below the figure of 9.2% in the second quarter.

Compared with the reference quarter of 2010, revenues of the RHI Group rose by
12.7% to EUR 429.8 million in the third quarter of 2011. The operating result of
the third quarter, at EUR 39.2 million, exceeds the level of the reference
period of 2010 of EUR 32.8 million; the operating result margin was thus half a
percentage point higher than in the third quarter of 2010.

At September 30, 2011 the equity ratio amounted to 24.5%, which corresponds to
an increase by 2 percentage points on the second quarter of 2011. Cash and cash
equivalents declined from EUR 86.6 million to EUR 74.6 million, which was
primarily due to the purchase consideration payments for the acquisitions in
Norway and Ireland. At the same time, net debt rose from EUR 346.9 million on
July 1, 2011 to EUR 356.6 million.

                                                   Q1 - Q3
in EUR million                            2011       2010    Change
Revenues                                 1,280.7    122.0      14.1%
Operating result1)                        108.4     107.2       1.1%
Operating result margin1)                   8.5%      9.6%     (1.1) PP
EBIT                                      108.4      96.7      12.1%
EBIT margin                                 8.5%      8.6%     (0.1) PP
Profit before income taxes                 88.9      83.3       6.7%
Profit                                     90.0      88.8       1.4%
Net cash flow from operating activities    74.9      (4.9)  1,628.6%
Investments in property, plant and 
equipment and in intangible assets         32.2      30.4       5.9%
Number of employees at September 30     8,001     7,370         8.6%

1) EBIT before restructuring expenses

Steel Division
In the first three quarters of 2011, the Steel Division realized an increase in
revenues of 14.6% compared to same period of 2010. The operating result, at EUR
47.1 million, slightly exceeded the prior-year reference figure of EUR 46.3

Despite a decline in world steel output by 2.4%, RHI´s Steel Division increased
its revenues by roughly 1% in comparison with the previous quarter, which was
due to further price increases related to higher raw material costs. The
operating result, at EUR 20.4 million, was only slightly lower than in the
previous quarter, when it amounted to EUR 20.6 million. 

Industrial Division 
Revenues of the Industrial Division, at EUR 432.8 million in the first three
quarters, clearly exceeded the prior-year figure of EUR 382.4 million. 
For seasonal reasons revenues in the Industrial Division are generally weaker in
the third quarter than in the rest of the year. At EUR 138.9 million, revenues
of the third quarter of 2011 were down approx. 7% on the previous quarter. The
decline in the margin to 9.9%, versus 12.2% in the second quarter, is largely
due to higher raw material costs, and here especially to the prices of zirconium
sand, which is applied for refractory products for the glass industry. 

Raw Materials Division
In the third quarter of 2011 two important steps were taken to improve the
backward integration of the Group: with effect from September 30, 2011, RHI
acquired Premier Periclase Ltd., Ireland. Premier Periclase Ltd. produces
roughly 70,000 annual tons of seawater-based large crystal sintered magnesia in
the north of Dublin with 109 employees. The closing of the acquisition of SMA
Mineral Magnesia AS, Norway, also took place with effect from September 30,
2011. Following these acquisitions and the capacity expansion at the production
site Eskisehir in Turkey, RHI will reach a self-sufficiency level for magnesia
raw materials of roughly 80% in mid-2012.

Based on the capacity reduction in the steel industry as well as the
conservative investment and ordering behavior of customers in the industrial
segment, RHI expects business to slow down moderately in the coming months.
However, this trend could come to an end again in the second quarter of 2012.
The World Steel Association forecasts an increase in steel output of approx.
5.4% for the year 2012. The volume produced in China will continue to grow above
average at 6% and Europe will, despite major regional differences, reach the
record production level of 2007 with a growth rate of 2.5%.

RHI is confident that the Group`s revenues of the second half of the year will
match the revenues of the first half, despite a decline in steel production. In
the fourth quarter, the Group´s EBIT will remain at the level of the third
quarter due to lower capacity utilization at the RHI plants.

The quarterly report III/2011 and the online version are available on the RHI
website www.rhi-ag.com.

Further inquiry note:
Investor Relations
Mag. Barbara Potisk-Eibensteiner
Tel: +43-1-50213-6123
Email: barbara.potisk@rhi-ag.com

end of announcement                               euro adhoc 

company:     RHI AG
             Wienerbergstrasse 9
             A-1100 Wien
phone:       +43 (0)50213-6123
FAX:         +43 (0)50213-6130
mail:     rhi@rhi-ag.com
WWW:      http://www.rhi-ag.com
sector:      Refractories
ISIN:        AT0000676903
indexes:     ATX Prime, ATX
stockmarkets: official market: Wien 
language:   English

Weitere Meldungen: RHI Magnesita

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