Strong revenues in Q4 and EBIT according to guidance RHI divisions Steel and Industrial realize new record revenues in 2011 RHI increases dividend from € 0,5 up to € 0,75 RHI invests € 170 million in 2012 Solid year 2012 expected in a volatile market environment
Figures RHI Group – Preliminary results 2011
| 2011 | 2010 | +/- | 2011 Q4 | 2010 Q4 | +/- | |
| Sales volume (thousand tons) | 1,948.3 | 1,786.7 | 9.0% | 503.9 | 474.5 | 6.2% |
| in € million | ||||||
| Revenues | 1,758.6 | 1,522.9 | 15.5% | 477.9 | 400.9 | 19.2% |
| Steel Division | 1,106.8 | 977.3 | 13.3% | 281.5 | 256.9 | 9.6% |
| Industrial Division | 613.9 | 517.8 | 18.6% | 181.1 | 135.4 | 33.8% |
| Raw Materials Division | ||||||
| External revenues | 37.9 | 27.8 | 36.3% | 15.3 | 8.6 | 77.9% |
| Internal revenues | 170.4 | 137.4 | 24.0% | 39.6 | 35.7 | 10.9% |
| Operating result1) | 148.6 | 138.8 | 7.1% | 40.2 | 31.6 | 27.2% |
| Steel Division | 70.1 | 62.7 | 11.8% | 23.0 | 16.4 | 40.2% |
| Industrial Division | 68.3 | 74.3 | (8.1)% | 20.6 | 22.1 | (6.8)% |
| Raw Materials Division | 10.2 | 1.8 | 466.7% | (3.4) | (6.9) | 50.7% |
| EBIT | 150.9 | 126.0 | 19.8% | 42.5 | 29.3 | 45.1% |
| Steel Division | 71.5 | 61.7 | 15.9% | 24.4 | 14.0 | 74.3% |
| Industrial Division | 71.8 | 60.6 | 18.5% | 24.1 | 20.1 | 19.9% |
| Raw Materials Division | 7.6 | 3.7 | 105.4% | (6.0) | (4.8) | (25.0)% |
1)before reversal of impairments/impairment losses and restructuring expenses
Business development
The RHI Group increased revenues by 15.5% to € 1,758.6 million in the year 2011 (previous year: € 1,522.9 million). The operating result rose by 7.1% to € 148.6 million (previous year: € 138.8 million). Earnings before interest and tax (EBIT) hence increased by nearly 20% to € 150.9 million (previous year: € 126.0 million) and included expenses and income arising from the reversal of impairments and restructuring of € 2.3 million, which are related to the closure of two sites in EMEA and the sale of a plant in Canada. The RHI Group’s profit thus rose from € 105.7 million in 2010 by approx. 15% to € 121.5 million in 2011. Cash flow from continuing operations amounted to
€ 86.2 million (previous year: € (84.9) million); free cash flow was positive at € 18.9 million despite a strong investment program.
The Steel Division benefited from the good development in the steel industry especially in the first half of 2011, which, however, lost momentum in the second half of the year. The Steel Division’s revenues of € 1,106.8 million (previous year: € 977.3 million) exceeded the record year 2010 by more than 13%.
The division’s EBIT amounted to € 71.5 million after € 61.7 million in the year 2010; the EBIT margin rose slightly from 6.3% to 6.5%.
With revenues of € 613.9 million (previous year: € 517.8 million), the Industrial Division also realized the highest revenues in company history. The business units nonferrous metals and environment, energy, chemicals recorded new record revenues. The division’s EBIT was increased by roughly 19% to € 71.8 million, while the EBIT margin of 11.7% exactly matched the level of the year 2010.
The Raw Materials Division recorded good capacity utilization throughout the entire year 2011. The focus in the year 2011 was placed on the backwards integration of raw materials and was reflected in the acquisitions in Ireland and Norway and in the expansion of the plant in Turkey.
Balance sheet
The company’s equity was increased by approx. 37% to € 438.9 million (previous year: € 320.9 million); the equity ratio amounted to 26% (previous year: 22.2%) at the balance sheet date. Net debt mounted to € 361.5 million at December 31, 2011 due to acquisitions (previous year: € 341.0 million). The Management Board of RHI AG intends to propose a dividend of € 0,75 per share to the Annual General Meeting on May 3, 2012.
Outlook
Q1/2012 In comparison with the fourth quarter of 2011, RHI expects slightly lower revenues in the Steel Division in the first quarter of 2012; in the Industrial Division, RHI expects revenues to fall substantially short of the exceptionally strong fourth quarter of 2011. Hence the EBIT margin will be slightly lower than in the fourth quarter of 2011.
Whole year 2012
Despite the uncertain economic environment, RHI expects good revenues for the whole year 2012, which will be at the level of the year 2011. The persisting good investment climate should be able to compensate a temporary downturn on the steel side. The EBIT margin in the year 2012 should exceed that of 2011 due to the higher backwards integration of magnesia-based raw materials and
the improved cost structure. The RHI group will invest roughly € 170 million in 2012, with the main part flowing into the expansion of raw materials supply in Norway and Turkey as well as the creation and extension of capacity in Brazil and China.
All data given for 2011 are preliminary, the final result and the consolidated balance sheet 2011 will be published on March 27, 2012 following the approval of the financial statements by the Supervisory Board.