EANS-Adhoc: RHI AG / Revenues continue to increase in the first quarter and investment programme of EUR 130 million in 2011

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12.05.2011

Revenues of the RHI Group amounted to EUR 413.8 million in the first
quarter of 2011, up 20.9% on the reference quarter of 2010. In the
Steel Division revenues grew by 20.1%, in the Industrial Division by
23.3%. The Group´s sales volume amounted to 466,526 tonnes (reference
period 2010: 412,183 tonnes). The operating result of the first
quarter declined in comparison with the same quarter of 2010 due to
negative currency effects, and was down 13.1% to EUR 29.2 million and
also corresponds to EBIT as no restructuring costs were incurred in
the first quarter. The EBIT margin thus deteriorated from 9.8% to
7.1%. Tax expenses equalled EUR 5.4 million in the first quarter,
which corresponds to a tax rate of 22.8%. Compared to the fourth
quarter of 2010 the RHI Group raised its revenues by 3.2%, while
EBIT, at EUR 29.2 million, was slightly below the figure of the
previous quarter of EUR 29.3 million. The EBIT margin of 7.1% fell
short of the EBIT margin of the fourth quarter of 2010, which
amounted to 7.3%. The equity ratio was increased from 22.2% as of 31
December 2010 to 22.5% as of 1 April 2011. Compared to the end of the
year 2010, cash and cash equivalents rose by EUR 27.9 million to EUR
86.7 million, causing net debt, which amounted to EUR 318.3 million,
to fall significantly below the figure of EUR 341.0 million at 31
December 2010. Net cash flow from operating activities rose to EUR
26.8 million in the first quarter of 2011 (Q1/2010: EUR 22.4
million), net cash flow from investing activities remained stable at
EUR -2.8 million, after EUR -2.9 million in the reference quarter of
2010.

1st Quarter
in EUR million 2011 2010 Change
Revenues 413.8 342.2 20.9%
EBITDA 42.4 44.9 -5.6%
EBITDA margin 10.2% 13.1% -22.1%
Operating result 1) 29.2 33.6 -13.1%
Operating result margin 7.1% 9.8% -27.6%
EBIT 29.2 31.7 -7.9%
EBIT margin 7.1% 9.3% -23.7%
Profit before income
taxes 23.7 26.8 -11.6%
Profit for the period 18.3 21.5 -14.9%
Net cash flow from
operating activities 26.8 22.4 19.6%
Capital expenditure -4.9 -5.2 -5.8%

Number of employees at
end of quarter 7,344 7,279 0.9%

1) EBIT before restructuring costs

Division Stahl In RHI´s Steel Division, which due to is structure
measures itself against world steel production ex China, revenues did
not match the growth levels of world steel production. Due to price
increases, which were related to higher costs for Chinese raw
materials, revenues were raised by 2.3% in comparison with the fourth
quarter of 2010, while sales volume declined by 3.5%. . As a result
of the strong USD movement between 31 December 2010 and 1 April 2011,
the operating result dropped to EUR 6.1 million, which corresponds to
a margin of only 2.3%. Overall, RHI increased revenues of the Steel
Division in the first quarter of 2011 by 20.1% to EUR 262.7 million
(Q1/2010: EUR 218.8 million). EBIT, at EUR 29.2 million, fell
slightly below the figure of the first quarter of 2010 of EUR 31.7
million.

Industrial Division In the Industrial Division, the first quarter of
2011 was characterised by a strong cement season. Both sales volume
and revenues are back to pre-crisis levels. This indicates a recovery
of the construction industry, which, however, still shows regional
differences. The development in the glass segment also indicates that
the investment climate is slowly improving. Revenues of the
Industrial Division amounted to EUR 144.6 million in the first
quarter of 2011, thus exceeding the figures of both the fourth
quarter of 2010 of EUR 135.4 million and of the first quarter of 2010
of EUR 117.3 million. EBIT amounted to EUR 15.8 million; the EBIT
margin equalled 10.9%, after 14.8% in the previous quarter. In
addition to glass revenues, which grew slightly below the average
margin of the division, the strong changes in the USD also had a
negative effect in this context.

Raw Materials Division The Raw Materials Division realised revenues
of EUR 50.6 million in the first quarter of 2011, after EUR 37.1
million in the prior-year period. This increase was attributable to a
significant increase in intragroup demand. EBIT amounted to EUR 7.3
million in the reporting period, which corresponds to an increase by
247.6% compared to the first quarter of 2010 and an EBIT margin of
14.4%. The division´s EBIT included the proceeds on the sale of a
property amounting to EUR 1.9 million.

Investment programme 2011 RHI will invest roughly EUR 130 million in
the plant in Brazil, in the raw materials plant in Norway, in a
fourth tunnel kiln in China and in other smaller-scale projects in
2011.

Outlook RHI expects a further increase in revenues in the Steel
Division in the second quarter and a similarly good development in
the Industrial Division. In the second half of the year RHI expects
flat revenues due to the competitive situation in the Steel Division.
In the Industrial Division revenues should match the high level of
the first half of the year. The price increases initiated in the
Steel Division in the past year and the higher share of the
industrial business will have a positive effect on the margin in the
course of the year.

The interim consolidated financial statements as of 01.04.2011 and
the online version of the quarterly financial report 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