Preliminary results: RHI profit for 2005 at the high level of the previous year

22. March 2006

 

Key Figures RHI Group, Preliminary results 2005

With a profit of EUR 99.8 million (2004: EUR 99.7 million), RHI once again reported a very good result in the financial year 2005. The profit attributable to stockholders of RHI AG (after minority interest) amounts to EUR  98.1 million (2004: EUR 95.0 million). On an undiluted basis, earnings per share came to EUR  4.18 (2004: EUR 4.63) as a result of the newly added RHI shares due to the conversion of convertible bonds in 2005. Taking into account all possible conversions by the end of 2009, earnings per share on a fully diluted basis were EUR  2.61 (2004: EUR 2.58), thus slightly exceeding the comparable figure of 2004. The price/earnings ratio (p/e ratio) of the RHI share therefore still amounts to under 6 on an undiluted basis and, fully diluted, to under 10.

With its good results, RHI once again confirms that the strategic direction taken following the crisis in 2001 has been successful. After the contract to sell the Insulating Group was signed in January, RHI is now fully concentrating on extending the globally leading technology and market position of RHI Refractories.

Note: As RHI signed a contract to sell the Heraklith Group in January 2006, the insulating division is already shown as “discontinued operations” in fiscal 2005 in accordance with IFRS regulations. Although profit of the RHI Group according to IFRS still comprises the entire business of the Group and thus also the insulating division, the group figures for revenue, EBIT and other earnings figures, have been “adjusted” for Insulating. In order to ensure better comparability, revenue and EBIT 2005 are shown as both figures comparable to 2004 and in accordance with IFRS. Both versions are also shown in the attached overview “Key figures of the RHI Group”.

On a comparable basis, RHI’s consolidated revenue amounted to EUR 1,451.5 million in 2005 (2004: EUR 1,297.3 million), up 11.9%. Revenue from refractories rose by a pleasing 7.5% to EUR 1,185.1 million (2004: EUR 1,102.6 million), enabling RHI Refractories to further extend its position as world market leader. With the successful acquisition in Slovenia, Insulating increased revenue significantly by 40.7% to EUR 255.4 million in 2005 (2004: EUR 181.5 million).

The RHI Group’s EBIT comparable to 2005 reached EUR 139.5 million (2004: EUR 135.6 million), up 2.9%. Refractories reported EBIT of EUR 117.8 million (2004: EUR 123.2 million), as a result of energy and raw material costs, which continued to rise in 2005. The EBIT margin fell to 9.9%, a good figure compared to the competition. Insulating more than doubled its EBIT to EUR 21.7 million (2004: EUR 10.1 million) and once again significantly improved its EBIT margin to a very good 8.5% (2004: 5.5%).

In accordance with IFRS, RHI’s consolidated revenue in 2005 amounted to EUR 1,199.4 million (2004: EUR 1,119.8 million), up 7.1%. This consolidated revenue shows the continuing refractories operations and other revenue in the amount of EUR 14.3 million.

The RHI Group’s EBIT recorded in accordance with IFRS was EUR 117.8 million in 2005 (2004: EUR 125.5 million). In addition to refractories, this figure also contains contributions by holding/other in the amount of EUR 0.0 million (2004: EUR 2.3 million).

All of the above mentioned data for 2005 are preliminary. The final results as well as RHI’s consolidated balance sheet 2005 will be published on April 25, 2006 following the approval of the balance sheet.