EANS-Adhoc: Preliminary results 2010 of RHI AG: Increase in revenues by 23% leads to rise in EBIT by 130%

--------------------------------------------------------------------------------
ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
--------------------------------------------------------------------------------

08.03.2011

>> Strong recovery of world steel output in 2010 -
RHI´s Steel Division outperforms the market
>> Industrial business driven by repair business -
growing number of new projects from Q4
>> Operating result margin increased from 6.4% to 9.1%
>> RHI will propose a dividend to the Annual General Meeting

2010 20091) +/- 2010 20091) +/-
Q4 Q4
Sales volume
(thousand tonnes) 1,786.7 1,436.2 24.4% 474.5 426.0 11.4%

in EUR million
Revenues 1,522.9 1,236.9 23.1% 400.9 336.7 19.1%
Steel Division 977.3 703.6 38.9% 256.9 206.2 24.6%
Industrial Division 517.8 513.6 0.8% 135.4 125.9 7.5%
Raw Materials Division
External revenues 27.8 19.7 41.1% 8.6 4.6 87.0%
Internal revenues 137.4 115.4 19.1% 35.7 34.6 3.2%
Operating result2) 138.8 79.0 75.7% 31.6 33.3 (5.1)%
Steel Division 62.7 2.7 2,222,2% 16.4 8.4 95.2%
Industrial Division 74.3 64.6 15.0% 22.1 18.4 20.1%
Raw Materials Division 1.8 11.7 (84.6)% (6.9) 6.5 (206.2)%
EBIT 126.0 54.8 129.9% 29.3 22.0 33.2%
Steel Division 61.7 (6.7) 1,020.9% 14.0 4.1 241.5%
Industrial Division 60.6 54.2 11.8% 20.1 15.1 33.1%
Raw Materials Division 3.7 7.3 (49.3)% (4.8) 2.8 (271.4)%

1) after reclassification
2) before reversal of impairment losses/impairment losses and restructuring
expenses

Market environment Following the decline in world steel output by 8%
due to the crisis in the year 2009 (outside China -20%), the year
2010 was characterised by a worldwide recovery. World steel output
rose to 1,4 billion tonnes in 2010, up roughly 15% on the reference
year 2009, with a particularly good development in the regions that
are especially important for RHI: in the EU27 (+24.6%), North America
(+35.7%) and Asia excl. China (+17.3%).

Both the cement and the glass industry reported subdued investment
activities, with the exception of the growth regions China and
Brazil, where infrastructure projects drove new construction
activities. A recovery became visible only in the fourth quarter. In
the nonferrous metals segment, the high price levels of nickel, lead
and zinc caused a revival of investment projects. At the end of the
year, a major contract amounting to EUR 47 million in the ferrochrome
sector was concluded in the CIS, which will be delivered in 2012.

Business Development RHI´s revenues were up 23.1% to EUR 1,522.9
million in 2010 (previous year: EUR 1,236.9 million); the operating
result increased by 75.7% to EUR 138.8 million (previous year: EUR
79.0 million). Earnings before interest and taxes (EBIT) thus rose by
129.9% to EUR 126.0 million (previous year: EUR 54.8 million) and
take into account restructuring measures and impairment losses for
the shut-down of the plants in Chile and Canada as well as a raw
material site in the EMEA region. The operating result margin, at
9.1% in 2010, significantly exceeded the prior-year figure of 6.4%,
but fell short of the pre-crisis level of 10.4%.

The Steel Division benefited from the good development of the steel
industry in the year 2010, increased revenues each quarter throughout
the year and even surpassed the revenue level of 2008. Revenues
amounted to EUR 977.3 million (previous year: EUR 703.6 million) and
at EUR 256.9 million in the fourth quarter exceeded revenues of the
fourth quarter of 2009 by some 25%. The division´s operating result
was negatively affected by the soaring raw material prices, which can
only be gradually passed to customers with a delay due to agreements.

Revenues of the Industrial Division, where business is strongly
characterised by the investment cycle, roughly matched the level of
2009 in terms of. With revenues amounting to EUR 517.8 million
(previous year: EUR 513.6 million), the operating result of EUR 74.3
million significantly exceeded the prior-year figure of EUR 64.6
million. In late 2010, the contract regarding the complete takeover
of ZAO Podolsk Refractories was signed; the closing will take place
in the second quarter of 2011.

Capacity utilisation at the Raw Materials Division was good
throughout the year 2010; both internal and external revenues were
significantly increased.

Statement of financial position The company´s equity was increased by
55.7% to EUR 320.9 million (previous year: EUR 206.1 million); the
equity ratio at the balance sheet date was 22.2% (previous year:
16.2%). Net debt at 31 December 2010 amounted to EUR 341.0 million
(previous year: EUR 255.9 million) due to the increase in working
capital. The Management Board of RHI AG will propose a dividend of
EUR 0.50 per share to the Annual General Meeting on 6 May 2011.

Outlook Overall, RHI expects an increase in revenues of approximately
5% for the year 2011 based on the generally positive economic
forecasts. Sales growth will be driven by the Industrial Division,
which received positive signals from all customer industries in the
fourth quarter of 2010. In the highly competitive steel segment, the
focus will lie on defending existing market shares due to necessary
price increases in the developed markets. Therefore, the Steel
Division´s contribution to growth in revenues will largely stem from
the planned price increases.

All of the data given for 2010 are preliminary figures; the final
result as well as the consolidated statement of financial position
2010 will be published on 21 March 2011 following the approval of the
consolidated financial statements by the Supervisory Board.

end of announcement euro adhoc
--------------------------------------------------------------------------------

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