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RHI AG / Results of the second quarter 2014 - comparative period2013 includes net income from termination of US Chapter 11 proceedings

Published: August 5, 2014; 07:44 · (Vindobona)

In the second quarter of 2014, the RHI Group increased its revenues by 8.6% compared with the first quarter of 2014 to EUR 436.8 million. This is primarily attributable to an increase in business volume in Europe, Russia and the Middle East in the Steel Division and significantly higher revenues in the business unit environment, energy, chemicals.

RHI AG / Results of the second quarter 2014 - comparative period2013 includes net income from termination of US Chapter 11 proceedings / Picture: © Vindobona.org

adhoc disclosure transmitted by euro adhoc with the aim of a Europewide distribution. The issuer is solely responsible for the content of this announcement.

Mid Year Results/6-month report
05.08.2014

In the second quarter of 2014, the RHI Group increased its revenues by 8.6%
compared with the first quarter of 2014 to EUR 436.8 million. This is primarily
attributable to an increase in business volume in Europe, Russia and the Middle
East in the Steel Division and significantly higher revenues in the business
unit environment, energy, chemicals.

The operating result rose to EUR 37.7 million in the second quarter of 2014
after EUR 34.1 million in the preceding quarter. The operating result margin
thus improved slightly to 8.6% in the past quarter. While the Steel and
Industrial Divisions raised their operating result margins due to better
capacity utilization, the operating result margin of the Raw Materials Division
dropped, which was, amongst other things, attributable to damage caused by a
fire in Porsgrunn, Norway, and the related restricted availability of the fusion
lines.

First half-year
In the first half of 2014 the RHI Group'srevenues dropped to EUR 839.1 million,
down 3.6% on the first half of 2013 due to a weaker development of revenues in
the first quarter of 2014. The operating result amounted to EUR 71.8 million in
the past quarter. Compared with the operating result of EUR 76.6 million in the
first half of 2013, this corresponds to a decrease by 6.3% and is primarily
related to the drop in revenues. The operating result margin decreased from 8.8%
in the first half of 2013 to 8.6% in the first half of 2014.

EBIT amounted to EUR 72.1 million in the first half of 2014 and includes
restructuring costs of EUR 0.5 million resulting from the closure of the plant
in Duisburg, Germany, and income from the reversal of provisions amounting to
EUR 0.8 million due to a reassessment of the scope of obligations related to the
termination of the US Chapter 11 proceedings in the previous year. In the first
half of last year, EBIT included provisions for restructuring of EUR 19.0
million related to the announced closure of the site in Duisburg, Germany, and
net income from the termination of the US Chapter 11 proceedings amounting to
EUR 75.8 million.

Equity amounted to EUR 485.4 million as of June 30, 2014 after EUR 485.5 million
as of December 31, 2013. The equity ratio improved slightly from 28.2% at the
end of the financial year 2013 to 28.3% as of June 30, 2014.

Cash and cash equivalents dropped from EUR 112.4 million to EUR 66.9 million,
which was due to the dividend payment of EUR 29.9 million and an increase in
working capital compared with December 31, 2013. Net debt consequently rose from
EUR 422.9 million to EUR 459.2 million. As a result, the gearing ratio increased
from 87.1% to 94.6%.

Net cash flow from operating activities amounted to EUR 12.4 million in the
first half of 2014 after EUR 63.3 million in the comparative period of the
previous year. This is primarily attributable to the massive increase in working
capital in the second quarter of 2014 as well as payments totaling roughly EUR
12 million made in the context of the social plan adopted as a result of the
closure of the plant in Duisburg, Germany. Net cash flow from investing
activities amounted to EUR (9.4) million in the first half of the year.

Outlook
Provided that the macroeconomic environment and exchange rates remain stable,
RHI expects similar revenues in the third quarter of 2014 as in the second
quarter of 2014, and a significant increase in revenues in the Industrial
Division in the fourth quarter of 2014.

As the growth of revenues did not meet internal expectations in the second
quarter of 2014 and the industrial business was weaker in comparison with the
previous year, especially in the glass and nonferrous metals business units, RHI
expects revenues at the prior-year level and an operating result margin between
8% and 9% for the full year 2014.

in EUR million H1/2014 H1/2013 Delta Q2/2014 Q1/2014 Delta
Revenues 839.1 870.7 (3.6)% 436.8 402.3 8.6%
EBITDA 105.0 168.1 (37.5)% 54.8 50.2 9.2%
EBITDA margin 12.5% 19.3% (6.8)pp 12.5% 12.5% 0.0pp
Operating result 1) 71.8 76.6 (6.3)% 37.7 34.1 10.6%
Operating result margin 8.6% 8.8% (0.2)pp 8.6% 8.5% 0.1pp
EBIT 72.1 133.4 (46.0)% 38.5 33.6 14.6%
EBIT margin 8.6% 15.3% (6.7)pp 8.8% 8.4% 0.4pp
Result before income taxes 62.6 116.4 (46.2)% 33.8 28.8 17.4%
Result from continued operations 42.6 83.3 (48.9)% 22.8 19.8 15.2%
1) EBIT before impairment and restructuring expenses and result from Chapter 11
proceedings

 

The report for the first half of 2014 is available for download on the RHI
website: www.rhi-ag.com/ Investor Relations / Financial Reports

Further inquiry note:
RHI AG
Investor Relations
Mag. Simon Kuchelbacher
Tel: +43-1-50213-6676
Email: simon.kuchelbacher@rhi-ag.com
end of announcement euro adhoc
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issuer: RHI AG
Wienerbergstrasse 9
A-1100 Wien
phone: +43 (0)50213-6676
FAX: +43 (0)50213-6130
mail: rhi@rhi-ag.com
WWW: http://www.rhi-ag.com
sector: Refractories
ISIN: AT0000676903
indexes: ATX Prime, ATX

stockmarkets: official market: Wien
language: English

Digital press kit: http://www.ots.at/pressemappe/1644/aom

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