RHI Magnesita

RHI confirms full-year guidance with Q1 results

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Financial Figures/Balance Sheet/quarterly report

Group revenues in the first quarter of 2013 were down 2.6% on the comparable
quarter of 2012 and amounted to EUR 425.5 million. While revenues in the Steel
Division fell by 8.1% in a market environment that continued to be difficult for
cyclical reasons, the Industrial Division recorded growth of 11.7% due to strong
cement business and the delivery of major projects in the nonferrous metals
business unit. The operating result of the first quarter was increased by 47.0%
compared with the same period of 2012 despite the delayed commissioning of the
fusion lines in Norway and, at EUR 49.4 million, also exceeded the level of the
fourth quarter of 2012. As no restructuring costs were incurred in the past
quarter, the operating result also corresponds to EBIT. The EBIT margin improved
significantly from 7.7% to 11.6%. Tax expenses in the first quarter of 2013
include provisions for a current tax audit. The tax rate calculated from the
cash flow item "income taxes paid" amounted to 20.6%.

Equity amounted to EUR 511.6 million as of March 31, 2013, after EUR 480.5
million as of December 31, 2012. Due to the partial payment of the purchase
price for the Indian company Orient Refractories Ltd., cash and cash equivalents
fell from EUR 185.7 million to EUR 152.4 million. Net debt rose from EUR 418.5
million to EUR 444.6 million. The gearing ratio improved slightly from 87.1% to
86.9% due to the higher equity. Net cash flow from operating activities amounted
to EUR 37.8 million despite a significant increase in working capital. Net cash
flow from investing activities in the past quarter amounted to EUR (60.1)
million and largely includes the acquisition of ORL. The number of employees
increased from 7,917 at December 31, 2012 to 7,976.

                                         1st Quarter
 in EUR million                      2013   2012 1) Change
 Revenues                            425.5  436.9   (2.6%)
 EBITDA                              65.9   47.6    38.4%
 EBITDA margin                       15.5%  10.9%   4.6pp
 Operating result 1)                 49.4   33.6    47.0%
 Operating result margin             11.6%  7.7%    3.9pp
 EBIT                                49.4   33.6    47.0%
 EBIT margin                         11.6%  7.7%    3.9pp
 Profit before income taxes          40.8   35.4    15.3%
 Profit                              22.8   32.0    (28.8%)
 Cashflow  from operating activities 37.8   45.0    (16.0%)
 Cashflow  from investing activities (60.1) (41.9)  43.4%
 Number of employees at end of
 quarter                             7,976  8,182   (2,5%)
1) For details on reclassifications see page 72 et seq. (other changes in

Steel Division
The Steel Division's revenues in the first quarter of 2013, at EUR 256.5
million, fell short of the revenues of the fourth quarter of 2012 with EUR 264.7
million and the revenues of the 2012 comparative period with
EUR 279.1 million. However, the operating result rose from EUR 3.8 million in
the fourth quarter of 2012 to EUR 20.5 million in the first quarter of 2013
despite a decline in revenues, also clearly exceeding the figure of EUR 12.1
million in the comparative quarter of 2012. The development of the operating
result margin reflects the consistent implementation of the sales strategy. At
8.0%, it exceeded the 1.4% of the preceding quarter and also that of the 2012
comparative period.
Industrial Division
In the first quarter of 2013, revenues of the Industrial Division, at EUR 159.7
million, fell short of the strong revenues of EUR 186.9 million in the fourth
quarter of 2012, but significantly exceeded the revenues of the 2012 comparative
period, which amounted to EUR 143.0 million. The operating EBIT declined
slightly from EUR 26.7 million in the fourth quarter of 2012 to EUR 25.5 million
in the first quarter of 2013, but was substantially higher than that of the
comparative quarter 2012 of EUR 14.3 million. At 16.0%, the operating result
margin exceeded the 14.3% of the preceding quarter and also that of the
comparative period of 2012.
Raw Materials Division
Due to the projects implemented to increase backward integration of raw
materials, revenues in the Raw Materials Division in the first quarter of
2013,at EUR 72.5 million, clearly exceeded the figures of the fourth quarter of
2012 and the 2012 comparative period of EUR 55.7 million and EUR 60.2 million
respectively. The operating EBIT rose from EUR 1.3 million in the fourth quarter
of 2012 to EUR 3.4 million in the first quarter of 2013, but fell short of the
EUR 7.2 million in the comparative quarter of 2012. The increased start-up costs
for the fusion line in Norway ware partially compensated by the sale of land in
Turkey. The operating result margin, at 4.7%, exceeded that of the preceding
quarter of 2.3%, but was lower than in the comparative quarter of 2012.
In a stable macroeconomic environment and with unchanged exchange rates, RHI
expects a higher level of revenues in the Steel Division for the second quarter
of 2013, amongst other things due to the full consolidation of the Indian Orient
Refractories Ltd., and in the Industrial Division slightly lower revenues than
in the first quarter of 2013. This is primarily attributable to the end of the
cement season. The operating result margin is expected to be in the single-digit
range due to changes in product mix, the higher share of revenues of the Steel
Division and negative effects from lower capacity utilization.
For the full year 2013 RHI adheres to the outlook that revenues at a similar
level as in 2012 and a further improvement in the EBIT margin (not including
positive one-offs mentioned below) can be realized.
The payment of USD 40 million received in the second quarter of 2013 will be
recognized as income from restructuring in the income statement and will
accordingly have a positive effect on EBIT. Forming provisions related to the
closure of the Duisburg plant leads to restructuring costs in the income
statement, which will, however, be balanced out by the reversal of provisions
related to the termination of the Chapter 11 proceedings of the deconsolidated
US companies.
The report on the first quarter of 2013 is available on RHI's website www.rhi-

Further inquiry note:
Investor Relations
Mag. Simon Kuchelbacher
Tel: +43-1-50213-6676
Email: simon.kuchelbacher@rhi-ag.com

end of announcement                               euro adhoc 

issuer:      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

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