The RHI Group reported revenue in the amount of € 998.6 million in the first three quarters of 2006 (previous year: € 893.9 million), an increase by 11.7%. In the third quarter revenue amounted to € 331.8 million (previous year: € 292.0 million) as a result of the good development of the refractories business worldwide and exceeded the figure of the previous year by 13.6%. Accumulated EBITDA in the RHI Group rose 20.7% to € 130.5 million (previous year: € 108.1 million); EBIT, at € 97.5 million (previous year: € 78,3 million), was up 24.5%. The EBIT margin in the group improved to 9.8% (previous year: 8.8%). Profit before income taxes from continuing operations (Refractories, other) increased by 32.4% to € 79.3 million (previous year: € 59.9 million), and profit after taxes rose 29.9% to € 71.3 million. Profit from discontinued operations (Insulating), which was realised with the closing of the Heraklith transaction in June 2006, amounted to € 60.8 million (previous year: € 9.8 million). The RHI Group’s profit thus increased by 104.2 % auf € 132.1 million (previous year: € 64.7 million) in the first three quarters of 2006.
With the focus on refractories, RHI shows a new reporting structure. Since two new members will be added to RHI’s Board of Management in 2007 to strengthen customer care and market penetration in the segments “Steel” and “Industrial”, reporting already now follows this new management structure. In addition, RHI reports on “Raw Materials, Production, Other” in a third segment. This segment shows the strategic value added by the mining, raw materials and production plants, which predominantly supply the Steel and Industrial segments (for details see Q3 report).
The refractories business continued to develop well in the third quarter of 2006, accumulated sales volume 2006 rose 8.4% to 1,357,000 tonnes. Consolidated revenue improved by 13.6% in the third quarter, accumulated 2006 by 11.7%. Revenue in the Steel segment in Q3 exceeded the previous year by 15.8%, in the Industrial segment by 8.9%; accumulated revenue in the Steel segment was up 11.3%, and 11.8% in the Industrial segment. The overall positive development in the Steel and Industrial segments reflects the favourable economic situation and the worldwide increase in output in RHI’s client industries. Incoming orders and the good economic situation of RHI’s customer industries indicate a positive business development for the fourth quarter 2006. Forecasts for results in 2007 are also positive, provided there are no unexpected cost, cyclical or exchange rate pressures. In addition to industrial cycles, especially in the steel industry, raw material and energy costs as well as monetary parity, business success is significantly influenced by the consolidation and modernisation of RHI’s client industries worldwide.