EANS-News: RHI AG: Global Recession affects company development in the first half of 2009 - RHI is prepared for a difficult year 2009

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Wien (euro adhoc) - Throughout the first half of 2009, the global
economic situation was characterised by a profound recession
worldwide. This had significant negative effects on the customers of
the RHI Group, where demand plummeted in nearly all industries,
causing high double-digit production cuts compared with the previous
year. As a result of the market situation, incoming orders and the
revenue development of RHI, the world market leader in refractories,
declined in all divisions in the first half of 2009.

RHI immediately reacted to the changed framework conditions with
structural and capacity adjustments, a group-wide cost saving
programme and a programme to lower working capital. These programmes
are being implemented according to plan and enabled RHI to generate a
positive operating result (EBIT) in the first half of 2009 despite
the contraction of the market. Thomas Fahnemann, Chairman of the
Management Board of RHI: "RHI has implemented the change from a boom
scenario to a recession scenario within a few weeks, and is prepared
for the currently very difficult market and financial situation."

Positive operating result - net debt reduced In the first half of
2009, RHI´s revenues fell by 25.1% to EUR 604.5 million compared with
the record year 2008. The decline of the RHI Group´s revenues is thus
significantly lower than in the customer industries, some of which
suffered 40-50% drops in revenues. EBITDA amounted to EUR 49.6
million (previous year: EUR 122.7 million); EBIT was clearly positive
at EUR 21.4 million (previous year: EUR 98.1 million) despite the
restructuring costs of EUR 6.8 million incurred in the second
quarter. The Group´s profit amounted to EUR 2.3 million (previous
year: EUR 70.4 million) in the first six months of 2009.

Since the beginning of the year, the RHI Group´s equity rose by 8.2%
from EUR 181.8 million to EUR 196.7 million, so that the equity ratio
continued to improve to 15.6% (31.12.2008: 13.7%). Net debt was
reduced by 17.8% to EUR 308.4 million in the first half of 2009.

1st Half
in EUR million 2009 2008 Change
Revenues 604.5 806.8 -25.1%
EBITDA 49.6 122.7 -59.6%
EBITDA margin 8.2% 15.2% -46.0%
EBIT 21.4 98.1 -78.2%
EBIT margin 3.5% 12.2% -71.3%
Profit before income taxes 3.1 81.6 -96.2%
Profit from continuing operations 2.3 71.6 -96.8%
Loss from discontinued operations 0.0 -1.2 n.a.
Profit 2.3 70.4 -96.7%
Diluted earnings per share (in EUR) 0.05 ´ 1.77 -97.2%

Steel Division

As a result of the international recession, world steel production
fell 21.1% period-on-period in the first six months of 2009, with an
especially dramatic drop in the European Union (-43.2%) and North
America (-48.5%). It was only towards the middle of the year that the
steel market started to stabilise at a low level. In this negative
environment, RHI managed to gain market share in Europe and America,
and to record double-digit growth in revenues and incoming orders in
Asia. Overall, however, the difficult market situation let do a
decline in revenues to EUR 317.1 million (previous year: EUR 486.6
million) in the Steel Division.

Industrial Division While the Industrial Division benefited from
existing orders in the first quarter of 2009, incoming orders also
declined in this division as expected in the second quarter. The main
causes were the slump in the construction industry and a lack of
project financing on the customer side, which increasingly led to the
postponement or cancellation of investment projects. Accordingly,
revenues of the Industrial Division declined in the first half of
2009 and amounted to EUR 275.2 million (previous year: EUR 299.9
million).

Raw Materials/Production Division As in the first quarter, the
development in the Raw Materials/Production Division was
characterised by low capacity utilisation and the related fixed cost
deficit in the first half of 2009. Raw material prices recorded a
largely stable development until mid-year.

Outlook Following a sharp drop in orders in the first half of 2009,
first signs indicated a bottoming out of this development at a low
level at mid-year. However, a first upward trend in the refractories
industry cannot be expected before the beginning of the fourth
quarter. 2009 will therefore be a difficult year for RHI. However,
based on massive counteractive and restructuring measures, RHI
expects to gain market share in this particularly difficult climate
and to emerge stronger from the crisis than its competitors.

RHI will continue unabatedly to implement its programmes to cut costs
and reduce working capital. Positive cost effects will increasingly
have an effect on the result in the second half of the year.
Moreover, marketing and sales activities are stepped up in all
divisions. At present new customers are successfully won, especially
in the emerging markets. RHI strives to maintain sale prices stable
in the coming months.

Details regarding the quarterly result and the online version of the
half-year financial report 2009 are available on the RHI Website
www.rhi-ag.com.

end of announcement euro adhoc
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ots Originaltext: RHI AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

RHI AG

Investor Relations

Mag. Barbara Potisk

Tel: +43-1-50213-6123

Email: barbara.potisk@rhi-ag.com

Branche: Refractories
ISIN: AT0000676903
WKN: 874182
Index: ATX Prime, ATX
Börsen: Wien / official dealing