Preliminary results 2006: RHI group profit at record level

21. March 2007

RHI reported a group profit amounting to EUR 157.9 million in 2006 (previous year: EUR 97.3 million), which contributed substantially to further improving equity in the consolidated balance sheet. Undiluted earnings per share amounted to EUR 5.81 in 2006 (previous year: EUR 4.07), fully diluted earnings per share to EUR 4.01 (previous year: EUR 2.55), up 57%.

EUR 97.1 million of the RHI Group’s profit (previous year: 82.8 million) were accounted for by continued operations with RHI’s core business, Refractories; the discontinued Insulating operations (Heraklith Group) contributed a book profit of EUR 60.8 million (previous year: EUR 14.5 million). Since the sale of Heraklith in 2006, RHI has been focusing on its position as world market leader for high-grade refractories systems solutions; the restructuring of the Group was completed successfully with the record results 2006.
Net financial liabilities continued to fall considerably by 34% to EUR 419.7 million in 2006 (previous year: EUR 636.4 million). This corresponds to the 2.3-fold EBITDA of the year 2006 and reflects the financial success of the reorganisation and the RHI Group’s newly gained scope for profitable growth in refractories worldwide.

RHI’s consolidated revenue (continued operations) rose by 11.4% to EUR 1,335.8 million in 2006 (previous year: EUR 1,199.4 million). With this increase in revenue, RHI outperformed the growth rates of its client industries and the refractories market, and expanded is position as the world market leader further. RHI’s divisions Steel (+10.9%) and Industrial (+13.3%) continuously expanded their business in a good market environment and gained market share in important growth regions worldwide. EBITDA in the RHI Group amounted to EUR 179.5 million (previous year: EUR 156.4 million); EBIT was EUR 133.8 million in 2006 (previous year: EUR 115.5 million), in increase by 15.8%. The EBIT margin increased to 10.0% (previous year: 9.6%) although energy and raw material costs continued to rise.

All figures for 2006 are preliminary; the final results and RHI’s consolidated balance sheet 2006 will be published after the balance sheet has been approved, on 25 April 2007.

The outlook for 2007 is positive. Based on business development and the level of incoming orders, the refractories business is expected to develop well. There are good opportunities worldwide to expand market position and earnings power further in the coming years. RHI’s objective is to increase revenue to EUR 2.0 billion by 2010 through organic growth and targeted acquisitions and to raise its world market share to over 15%.