EANS-News: RHI AG / Significant improvement in results in the third quarter due to successful restructuring programme

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quarterly report

Wien (euro adhoc) - Following the worldwide recession, which had
characterised the business development in the first half of 2009, the
economy started to bottom out in most of RHI´s customer markets at
mid-year. This had first positive effects on RHI´s customer
industries, especially in the Steel Division. In the Industrial
Division no significant recovery was tangible by the end of
September. Capacity utilisation of the Raw Materials Division was in
line with the demand for basic materials in the RHI Group.

The restructuring measures introduced in the first half of the year
were consistently implemented, so that the resulting cost
improvements had an effect on the result for the first time in the
third quarter. Consequently, the RHI group generated an operating
result of EUR 32.8 million in the first three quarters despite the
ongoing difficult economic climate. Profit in first nine months of
2009 was down 26.3% on the comparative period of 2008 and amounted to
EUR 900.2 million.

Performance in the third quarter was better than in the second
quarter: revenues amounted to EUR 295.7 million (after EUR 288.7
million), and EBIT to EUR 11.4 million (after EUR 7.3 million).

Since the beginning of the year, equity of the RHI Group rose from
EUR 181.8 million to EUR 189.9 million. The liquidity situation
improved further and net debt was reduced by 28.4% from EUR 375.0
million at 31 December 2008 to EUR 268.5 million.

Q1 - Q3
in EUR million 2009 2008 Change
Revenues 900.2 1.220.9 -26.3%
EBITDA 73.5 184.9 -60.2%
EBITDA margin 8.2% 15.1% -46.1%
EBIT 32.8 148.0 -77.8%
EBIT margin 3.6% 12.1% -70.2%
Profit before income taxes 6.7 123.5 -94.6%
Profit from continuing operations 4.4 108.3 -95.9%
Loss from discontinued operations 0.0 -1.1 n.a.
Profit 4.4 107.2 -95.9%
Diluted earnings per share in EUR 0.11 2.69 -95.9%
Number of employees at 30 September 7,078 7,845 -9,8%

RHI´s Steel Division benefited from the recovery in world steel
output and generated revenues of EUR 179.0 million in the third
quarter of 2009, up 18% on the previous quarter. Due to the weak
market performance in the first half of the year, revenues declined
by 33.6% to EUR 497.4 million in the first nine months of 2009.

In RHI´s Industrial Division, the situation continued to be very
subdued overall in the third quarter of 2009. Revenues of the
Industrial Division, at EUR 387.7 million in the first nine months of
2009, fell short of the prior-year figure of EUR 446.8 million.

Revenues of the Raw Materials Division in the first three quarters of
2009 dropped by 30.8% on the comparative period of 2008 because of
lower volumes and a decline in price levels.

New strategy and long-term location concept Following the
corresponding preparation work, RHI established a corporate strategy
until 2015. The objectives are to make RHI the most profitable group
in the industry and to expand the number one position further.

The new location concept is one of the main prerequisites for this
strategy. It provides for increased flexibility and an optimisation
of production capacity to match future market and demand
developments. This goes hand in hand with a transfer of production
capacities from the stagnating customer markets of Europe and North
America to the emerging markets of Asia. Through a consistent
reduction of fixed costs, all existing plants in the western
industrialised countries are to be maintained. Individual plants or
part of plants, however, will be shut down until the economy picks up
again.

The new concept will require investments of roughly EUR 15 million in
the coming years. In addition, non-recurring costs of roughly EUR 5
million will be incurred in the context of staff cuts with a focus on
Europe and North America.

Outlook Depending on the further development of the world economy,
demand in the Steel Division is expected to stabilise further and the
order level in the Industrial Division is expected to improve in the
coming months until the end of the year 2009. As there will be no
more non-recurring restructuring costs and the cost effects resulting
from capacity adjustments are now taking full effect, the RHI Group´s
results should improve in the fourth quarter of 2009.

Therefore, in the light of the deep crisis, an adequate annual result
is to be expected for the whole year 2009.

Details on the quarterly report as well as the online version of the
quarterly financial report III/2009 are available on RHI´s website
www.rhi-ag.com.

Ende der Mitteilung euro adhoc
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ots Originaltext: RHI AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

RHI AG

Investor Relations

Barbara Potisk-Eibensteiner

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