RHI Half-year results confirm turnaround, positive outlook for 2002 (ad hoc)

27. August 2002

RHI Group reported a good business development with positive results in the second quarter of 2002 despite the ongoing weak industry cycle worldwide. Compared to 2001, RHI increased the operating result (EBIT according to ÖHGB) by more than 60% to EUR 40.6 m in the first half of 2002 despite the split from the US refractories activities and consolidated sales revenues that were down 30% due to changes in consolidation. With net income for the period (ÖHGB) amounting to EUR 18.8 m, RHI met the half-year targets of the capital restructuring and confirmed the turnaround. An important step in focussing RHI on the core business Refractories was realized through the sale of the Engineering Division, which was successfully completed in the first half of 2002.

RHI’s consolidated sales revenues amounted to EUR 670.1 m in the first half of 2002 (previous year incl. Refractories USA: EUR 952.1 m); of this figure, approx. EUR 527.2 m, thus approx. 80%, were accounted for by the core business Refractories. In the previous year, Refractories sales revenue, including activities in the USA, still amounted to EUR 783.0 m; the figure comparable to the new structure came to EUR 500.0 m. Refractories EBIT came to EUR 48.7 m in the first half of 2002 (previous year incl. USA: EUR 30.3 m); the EBIT margin thus amounts to 9.2%. EBIT margin therefore rose to 9.6% in the second quarter (1st quarter: 8.9%), Insulating reported sales revenues of EUR 76.7 m in the first half of 2002 (previous year: EUR 95.4 m), which fell short of the figure of the previous year due to consolidation.

Insulating EBIT amounted to EUR 0.1 m (previous year: EUR 3.0 m). Engineering reported sales revenues in the amount of EUR 72.8 m (previous year: 80.3 m). This division was deconsolidated as of June 30, 2002 in the course of the sale. EBIT to be reported for Engineering amounted to EUR 0.0 m after deconsolidation.

Group EBIT amounted to EUR 40.6 m in the first half of 2002 (previous year: 25.2 m) according to ÖHGB and EUR 50.3 m according to IAS; which corresponds to a 61% increase (ÖHGB) on the previous year. Financial result amounted to EUR –14.7 m (ÖHGB) or EUR –21.1 m (IAS).

Result from ordinary activities (EBT) in the RHI Group amounted to EUR 25.9 m (ÖHGB) or EUR 29.2 m (IAS) in the first half; consolidated net income for the period came to EUR 18.8 m (ÖHGB) or EUR 19.5 m (IAS).


Quarterly Report 2/2002