Preliminary result 2008 of RHI AG: further increase in revenue – decline in earnings due to increased precautionary measures (ad hoc)

12. março 2009

Key Figures RHI Group Preliminary result 2008

RHI, the world market leader in refractories, increased consolidated revenues by 8.8% to EUR 1,596.7 million in 2008 (previous year: EUR 1,467.6 million); however, the operating result, at EUR 148.4 million, fell short of the prior-year-figure of EUR 165.8 million. This is due to increased precautionary measures (market risks and impairments) in the balance sheet totalling EUR 39 million in the context of the global recession.

The profit of the RHI Group amounted to EUR 100.6 million; at 31 December 2007 it was EUR 111.0 million. The RHI Management Board will propose to the Annual General Meeting on 28 May 2009 to carry forward the accumulated profit 2008 of RHI AG in its entirety in order to further strengthen equity and with a view to the economic situation.

The year 2008 showed varied developments for the group: while two-digit growth rates in revenues and earnings were recorded in the first three quarters, the fourth quarter reflected first effects of the global economic crisis. The Steel Division suffered a 6.5% decline in revenues in Q4; the Industrial Division resisted this trend with a 7.8% increase in revenues.

In order to be prepared for further growth, the Management Board of RHI AG has decided to reorganise the group. As of 1 July 2009 the respective production facilities and research activities will be allocated to the Steel, Industrial and Raw Material Divisions. In the third quarter of 2009 RHI will report according to the new structure for the first time. Moreover, a comprehensive cost-cutting programme with a savings target of approx. EUR 80.0 million has been launched for 2009/2010.

In the first months of the year 2009 the negative trend of the last quarter of 2008 continued. Economic recovery plans worldwide should have a positive impact on RHI’s customer industries in the second half of 2009. Lower raw material and energy prices as well as internal cost savings should partially counteract future price pressure.

All of the above figures for 2008 are preliminary; the final results and the consolidate balance sheet 2008 will be published following the approval of the balance sheet on 23 April 2009.