Key figures preliminary result 2007
The refractories world market leader RHI increased revenue from continuing operations by more than 11% to EUR 1,485.8 million (previous year: EUR 1,335.8 million) and the operating result by approx. 23% to EUR 164.3 million. With this increase in revenues, RHI surpasses the growth rates of its customer industries and the refractories market.
The RHI divisions Steel (+9.3%) and Industrial (+15.8%) continuously expanded their business in a good market environment and gained market share in important growth regions. Although raw material, energy and transport costs have continued to rise, the technology leader managed to raise the EBIT margin from 10.0% in 2006 to 11.1% in 2007. Profit after taxes amounted to EUR 111.0 million (previous year:
EUR 97.1 million). The company’s equity, at EUR 95.6 million, was positive again for the first time since the crisis threatening RHI’s very existence due to the asbestos claims in the USA in the year 2001.
Cash flow from operating activities increased by more than 200% to EUR 154.8 million; free cash flow, at EUR 51.1 million, fell short of the prior-year figure due to the acquisition of Monofrax as well as the complete takeover of Dolomite Franchi S.p.A. and increased investing activities, in particular in the raw material joint venture in China and the new smelting plant in South Africa.
All of the above data for 2007 are preliminary; the final results and the consolidated balance sheet 2007 will be published on 25 April 2008 following the approval of the balance sheet.
At the Annual General Meeting on 29 May 2008, the RHI Management Board will propose to carry forward the accumulated profit 2007 of RHI AG in its entirety in order to strengthen equity and with a view to the ambitious growth targets. RHI’s objective is to increase revenue to EUR 2.0 billion by 2010 through organic growth and targeted acquisitions, to raise its EBIT margin to 12% due to the higher raw material supply rate and its world market share to over 15%.
Outlook 2008: The record level of incoming orders at the end of December 2007, the newly created company-owned raw material supplies in China as well as the general business development in the customer industries indicate a sustained strong business development in 2008.