RHI net income increases by 30% in 2004

17. March 2005


Key Figures RHI Group, Preliminary results 2004

RHI improved its net income to EUR 99.7 million in the financial year 2004 (2003: EUR 77.5 million), an increase by 28.6%. The profit allocated to the shareholders of RHI AG rose by 30.3% to EUR 95.0 million (2003: EUR 72.9 million). RHI thus recorded a significant increase in earnings for the third consecutive year after the crisis in 2001. In addition, the result 2004 was the best in the company’s history. The undiluted earnings per share improved by 26.9% to EUR 4.63 (2003: EUR 3.65).

This positive increase in earnings in the RHI Group in 2004 is essentially attributable to two effects: EBIT rose by 11.1% to EUR 135.6 million (2003: EUR 122.0 million), and the EBIT margin, at 10.5% in 2004 (2003: 9.9%), is a two-digit figure for the first time. Moreover, income taxes were reduced by 66.5% to EUR –6.3 million (2003: EUR –18.8 million) in 2004 as a result of transfer pricing regulations and optimum use of loss carry-forwards.

RHI reported sales revenues of EUR 1,297.3 million in 2004 (2003: EUR 1,232.6 million), up 5.2%. Sales revenue in the refractories core business, under the RHI Refractories brand, rose 6.6% toh EUR 1,102.6 million (2003: EUR 1,033.6 million); adjusted for currency effects the increase would have amounted to 8.6%. RHI Refractories recorded EBIT amounting to EUR 123.2 million (2003: EUR 115.9 million); the EBIT margin, at 11.2%, remained constant.

RHI’s Insulating division, with the lead company Heraklith, increased sales revenues by 8.7% to EUR 181.5 million (2003: EUR 166.9 million). EBIT again rose significantly by 42.3% to EUR 10.1 million (2003: EUR 7.1 million); the EBIT margin amounted to 5.5% (2003: 4.3%). As the former Waterproofing activities were still included in the annual sales revenue of 2003, sales revenue in the group rose by a smaller proportion than in the individual divisions in 2004 due to changes in consolidation.

With the good results of 2004, RHI once again confirms that the strategic steps taken after the company’s crisis in 2001 are successful. RHI Refractories and Heraklith have since continuously improved their market position and increased their operating earnings power for the third consecutive year.

All of the above-mentioned figures for 2004 are preliminary; the final results will be published after the balance sheet has been approved on April 21, 2005.