RHI’s final results 2002 confirm turnaround (ad hoc)

08. April 2003

RHI’s good preliminary results for 2002 have been reconfirmed; the restructuring and earnings targets were significantly exceeded. The RHI Group reported consolidated sales revenues of EUR 1,351.9m (2001: EUR 1,867.2m), EBITDA of EUR 143.4m (2001: EUR -24.2m) and EBIT of EUR 85.2m (2001: EUR -114.3m) acc. to ÖHBG and of EUR 117.9m acc. to IAS. RHI thus confirms, through strong performance, the aspired turnaround despite the decline in sales revenue resulting from the split of refractories USA and the sale of Engineering.

EUR 1,067.2m (2001 incl. USA EUR 1,510.5m, 2001 comparable EUR 1,034.0m), or 79%, of consolidated sales revenue are accounted for by Refractories, where EBIT amounted to EUR 98.8m (2001: EUR -71.5m, comparable EUR 72.2m). The high earnings power of RHI’s core business thus becomes clearly visible again after the deconsolidation of the US activities. Sales revenue in the Insulating Division amounted to EUR 164.4m (2001: EUR 161.5m). EBIT in 2002 amounted to EUR 4.1m (2001: EUR -6.9m, comparable EUR 2.2m).

Further key data: financial result EUR -23.0m (2001: EUR -90.6m) acc. to ÖHGB, EUR -43.4m acc. to IAS. Result from EBT EUR 62.2m (2001: EUR -204.9m) acc. to ÖHGB, EUR 74.5m acc. to IAS. Extraordinary result EUR 19.9m (2001: EUR -590.7m) acc. to ÖHGB, EUR 0.0 acc. to IAS. Taxes EUR -12.7m (2001 EUR -60.8m) acc. to ÖHGB, EUR -23.5m acc. to IAS. Net income for the year EUR 69.4 m (2001: EUR -856.4 m) acc. to ÖHGB, EUR 51.0m acc. to IAS. Net income after minorities EUR 65.9m (2001: EUR -863.1m) acc. to ÖHGB, EUR 48.2m acc. to IAS (EUR 70.6m in consideration of the change in result previous periods by conversion to IAS).

Cash flow from operating activities in the amount of EUR 81.6m (2001: EUR -106.6m) and the reduction of financial liabilities to EUR 370.0m (2001 EUR 670.3m) are also a result of the successful turnaround and the capital restructuring. Effective equity capital was positive again at December 31, 2002 as planned amounted to EUR 18.2m (2001: EUR -148.6m).

The Chapter 11 proceedings of the deconsolidated US companies are developing in line with expectations; the next steps include establishing funds for asbestos creditors and the presentation of the reorganization plans. Business in Q1/2003 developed in line with expectations and both incoming orders and the earnings outlook for 2003 remain positive.