LANGUAGE: EN | PT

RHI Group with good business development in the first half of 2007

26. July 2007

The RHI Group reported revenues in the amount of EUR 732.0 million (previous year: EUR 666.8 million) in the first half of 2007, up 9.8%. EBITDA rose 21.8% to EUR 105.2 million (previous year: EUR 86.4 million); EBIT improved by a very positive 25.1% to EUR 80.8 million (previous year: EUR 64.6 million). Die EBIT margin, at 11.0% (previous year: 9.7%), also clearly exceeded the figure of the previous year. Profit before income taxes from continuing operations amounted to EUR 61.0 million (previous year: EUR 51.4 million), up 18.7%. The RHI Group profit, at EUR 53.7 million (previous year: EUR 107.0 million), was 49.8% down on the previous year. However, compared to the adjusted figures of the refractories profit, the group profit rose 16.2% on the previous year to EUR 53.7 million.

RHI’s Steel Division recorded revenues of EUR 439.5 million (previous year: EUR 398.6 million) in the first half of 2007, up 10.3%. The EBIT margin improved to 9.0% (previous year: 7.7%). RHI’s Industrial Division reported revenues in the amount of  EUR 266.3 million (previous year: EUR 241.4 million) in the first half of 2007, an increase by 10.3%, which is largely attributable to the RHI Monofrax acquisition. At 12.4%, the EBIT margin was slightly below the good level of the previous year. RHI’s Division Raw Materials, Production, Other reported revenues amounting to EUR 481.9 million in the first half of 2007; adjusted for deliveries to the Steel and Industrial Divisions, external revenues amounted to EUR 26.2 million (previous year: EUR 26.8 million). The EBIT margin improved to 1.7% (previous year: 0.6%).

RHI expects a continued positive market environment with solid growth rates in the customer industries worldwide. The availability and cost development of important raw materials and energy are important influences on the economic situation of the RHI Group. Incoming orders are still at a high level so that a continued business development is to be expected for the rest of the year. RHI will continue to expand capacity in China and India in 2007 in order to lay the foundations for profitable growth. In the raw materials segment, however, significant price increases for materials purchased in China (introduction of export tax, increase in cost due to trading export licenses) are expected. The intention is to pass these costs on to the customer. RHI’s consolidated revenues and operating result are overall expected to exceed the level of the previous year in 2007. Moreover, the Management Board of RHI AG is currently evaluating possible acquisitions to achieve the target of increasing revenues to EUR 2.0 billion and the world market share to over 15% by 2010 based on organic growth and targeted acquisitions.