Good half-year result compared to the previous year despite weak US Dollar (ad hoc)

07. August 2003

In the first half of 2003 group sales revenue amounted to EUR 613.4 million (previous year: EUR 670.1 million); the decline results primarily from the sale of Engineering as of June 30, 2002. EUR 516.7 million (previous year: EUR 526.2 million) of consolidated sales revenue were accounted for by RHI Refractories; the slight drop is exclusively due to the significant change in the US dollar/euro relation over the past year. Refractories EBIT amounted to EUR 59.2 million in the reporting period (previous year: EUR 54.0 million); the EBIT margin in RHI’s core business thus reached a good 11.5% despite the negative effects of the weak US dollar, following 10,3% in the previous year.

Insulating reported sales revenues of EUR 77.4 million (previous year: EUR 77.8 million), which was still slightly below the figure of the previous year because of limited construction activities at the beginning of the year due to low temperatures. EBIT in the Insulating Division, at EUR 1.1 million (previous year: EUR 0.4 million), exceeded the level of the previous year due to positive restructuring and cost-cutting effects and despite adverse market conditions.

The group’s EBIT was EUR 53.9 million (previous year: EUR 50.3 million) in the first half of 2003; RHI thus confirms the turnaround of the year 2002.

Further IAS key figures in the first half: financial result EUR –21.1 million (previous year: EUR –21.1 million), EBT EUR 32.8 million (previous year: EUR 29.2 million), result before minorities EUR 21.0 million (previous year: EUR 19.5 million), net income after minorities EUR 18.2 million (previous year: EUR 16.6 million), earnings per share EUR 0.91 (previous year: EUR 0.83).

The group’s equity, which was still negative, improved by EUR 38.6 million at June 30, 2003; financial payables were reduced by EUR 27.0 million to EUR 343.7 million in the first half.

Despite the weak US dollar as compared to 2002, the earnings outlook for 2003 is still positive due to RHI’s good competitive position, the good earnings development to date and not least the stable level of incoming orders. RHI once again expects a good results for 2003.

Quarterly Report 2/2003