EANS-News: RHI AG / improvements in revenues and earnings in the first half of 2010

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quarterly report

Wien (euro adhoc) - RHI AG, the world market leader for refractory
products, continued the upward trend in the first half of 2010 and
realised significant improvements in revenues and earning in
comparison with the very difficult first half of 2009.

Revenues of the RHI Group in the first half of 2010 rose by 22.5% to
EUR 740.7 million compared with the reference period of 2009 (first
half 2009: EUR 604.5 million). The operating result increased by
139.2% compared with the first half of 2009, up from EUR 31.1 million
to EUR 74.4 million. The balance of the reduction in carrying value
and the insurance compensation for the plants destroyed by the
earthquake in Chile was reflected in a positive one-off effect of EUR
7.9 million. The pre-restructuring EBIT margin rose from 5.1% to
10.0%. Impairment losses and restructuring expenses amounted to EUR
-4.1 million in the first half of 2010. The Group´s EBIT thus
equalled EUR 70.3 million (first half 2009: EUR 21.4 million). In
comparison with the first quarter of 2010, the second quarter of 2010
also showed a positive development. Revenues were up 16.5% on the
previous quarter, and the quarterly EBIT was increased from EUR 31.7
million to EUR 38.6 million.

As of 2 July 2010 the equity ratio increased to 22.3% versus 20.0% as
of 31 March 2010. Compared with the half-year balance sheet date of
the previous year, equity rose by 59.5% from EUR 196.7 million to EUR
313.8 million; net debt declined by 24.0% from EUR 308.4 million in
the reference period to EUR 234.4 million.

1st Half
in EUR million 2010 2009 1) Change
Revenues 740.7 604.5 22.5%
Operating result2) 74.4 31.1 139.2%
Operating result margin2) 10.0% 5.1% 4.9ppts
EBIT 70.3 21.4 228.5%
EBIT margin 9.5% 3.5% 6.0ppts
Profit before income taxes 61.7 3.1 1,890.3%
Profit after income taxes 49.1 2.3 2,034.8%
Net cash flow from operating activities 16.2 90.3 (82.1)%
Capital expenditure 14.5 15.1 (4.0)%
Employees at half-year 7.258 7.062 2.8%
1) after reclassification
2) before impairment losses and restructuring expenses

Steel Division
World steel output in the first half of 2010 increased by roughly 28% compared
with the first half of 2009, not including China even by some 34%. Revenues of
the Steel Division improved significantly from EUR 318.4 million to EUR 466.2
million; the operating result was raised from EUR -9.7 million to EUR 30.9
million. In the second quarter, RHI increase revenues by 61.6% in comparison
with the same period of the previous year. The growth of RHI thus again exceeded
the growth rate of steel production. The operating result of the second quarter,
at EUR 14.8 million, was clearly positive after it had still been negative at
EUR -2.9 million in the second quarter of 2009.

Industrial Division
In the second quarter of 2010 business in the most important customer industries
of the Industrial Division started to recover slightly. However, a genuine
upswing, in the global construction industry in particular, is not yet in sight.
Revenues of the Industrial Division, at EUR 262.1 million in the first half of
2010, still fell slightly short of the figure of the first half of 2009 (EUR
275.4 million), which was still affected by the good order situation of the year
2008. The operating result increased from EUR 33.0 million in the first half of
2009 to EUR 39.2 million in the first half of 2010, which corresponded to a
pre-restructuring EBIT margin of 15.0% (first half of 2009: 12.0%). The
improvement of the pre-restructuring EBIT margin in the second quarter of 2010
to 16.4% (second quarter of 2009: 10.4%) was primarily attributable to the
one-off effect of an insurance payment resulting from the earthquake in Chile.

Raw Materials Division Revenues of the Raw Materials Division
improved from EUR 63.5 million to EUR 77.7 million in the first half
of 2010, up 22.4% on the comparative period in 2009. This was caused
by significantly higher demand by the Steel and Industrial Divisions.
In comparison with the first half of 2009, capacity utilisation was
32.4% higher. The operating result amounted to EUR 4.3 million in the
first half of 2010 (first half 2009: EUR 7.8 million), with a
landslide at the Eskisehir plant in Turkey due to bad weather
creating costs of EUR 1.5 million.

Outlook RHI expects a sustained recovery of the global economy in the
second half of the year, which will again be driven by growth in the
emerging markets. A potential slow-down of the growth momentum should
not counteract the overall trend. Uncertainties may result from
changes in the structure of raw material prices.

The order status of the Steel Division for the third quarter of 2010
indicates a business development comparable to the two previous
quarters, though moderately weaker due to seasonal factors. In
comparison with the first half of 2010, RHI expects global steel
output to decline slightly in the second half of the year 2010. In
addition, the increased raw material costs will cause pressure on
margins and make significant price adjustments necessary in the
coming quarters.

In the Industrial Division RHI considers the market development
positive and expects revenues in the second half to slightly exceed
the figures of the first half, which will be primarily attributable
to a good fourth quarter.

The development of the Raw Materials Division will depend on the
further economic development, especially in the steel industry.

Overall, RHI expects revenues in the second half of the year to reach
the level of the first half. Higher raw material prices and the
delayed price adjustments give reason to expect an EBIT margin in the
third quarter 2010 of 50-150 base points below that of the first half
of the year.

The half-year financial report 2010 and the online version are
available on RHI´s 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-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 market