RHI reports third consecutive good quarter, targets for 2002 will be exceeded (ad hoc)

26. November 2002

Despite average cyclic conditions in industry and the weak construction industry, RHI reported good results again in Q3 2002. RHI thus confirmed the turnaround and the reorientation of the group for the third consecutive quarter.

In the first 9 months 2002, the RHI Group increased EBIT (according to OeHGB) by 273% to EUR 67.8 million as compared to the previous year. This soaring operating result was realized despite the split from the US refractories activities and the sale of Engineering, which entailed a 31% decline in sales revenues. With a net income (according to OeHGB) of EUR 35.2 million, RHI clearly exceeds the targets set within the capital restructuring in the first 9 months.

RHI’s sales revenue amounted to EUR 985.6 million in the first 9 months 2002 (previous year incl. Refractories USA: EUR 1,428.4 million). Core business Refractories accounted for EUR 797.2 million or 80% of this figure. In the previous year Refractories sales including Usbusiness amounted to EUR 1,156.4 million, the comparable figure for the previous year is EUR 774.4 million. Refractories EBIT amounted to EUR 75.8 million (previous year incl. USA: EUR 22.9 million), EBIT margin to a very good 9.5%. Insulating reported sales revenues of EUR 123.1 million, which fell short against of the figure of the previous year (EUR 154.6 million) due to cyclical factors and changes in consolidation. Insulating EBIT amounted to EUR 3.8 million (previous year: EUR 6.6 million).

In the first 9 months 2002, Group EBIT came to EUR 67.8 million according to OeHGB (previous year: EUR 18.2 million) and EUR 80.0 million according to IAS. Financial result amounted to EUR -21.1 million (OeHGB) or EUR -31.6 million (IAS). Result from ordinary activities (EBT) thus reached EUR 46.7 million (OeHGB) or EUR 48.4 million (IAS), net income was EUR 35.2 million (OeHGB) or EUR 32.2 million (IAS).

In view of the continuing good level of incoming Refractories orders, RHI will also exceed its earnings targets for the 4th quarter and 2002 as a whole. RHI can thus confirm the expectations already in the first year after the capital restructuring and the portfolio reorientation. The pending Chapter 11 proceedings of the deconsolidated US Refractories subsidiaries have so far progressed as expected. The non-asbestos-creditors of the US companies must file their definitive claims by February 28, 2003 (“bar date”).