The Management Board of RHI AG informed the Supervisory Board at today’s meeting that the production of fused magnesia in Norway as of today’s knowledge will not meet the original business plan assumptions in the medium term. The revised assumptions result in an significant impairment requirement. The Supervisory Board approved the Management Board’s proposal to involve external consultants in order to identify further potential for improvements. The operations in Norway will have a negative effect of roughly EUR 15-20 million on the operating result of the year 2014.
In the financial year 2014, RHI expects the relevant end markets to recover and, consequently, revenues to increase by some 3% compared with the year 2013. The operating result margin is estimated to amount to between 8% and 9% including the negative effects from Norway.