EANS-News: RHI AG / RHI Group increased revenues and profit in the first nine months 2011

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quarterly report

Wien (euro adhoc) - In the first three quarters of the year 2011, the
RHI Group increased revenues by 14.1% in comparison with the same
period of the previous year. The operating result amounts to EUR
108.4 million, up roughly EUR 1.1 million on the 2010 reference
period.

In the third quarter of 2011, revenues declined by 1.7% in comparison
with the second quarter of 2011 due to the traditionally weaker steel
business in the summer months and the seasonal effect in the cement
industry. The operating result dropped 2.0% to EUR 39.2 million and
the operating result margin of 9.1% is slightly below the figure of
9.2% in the second quarter.

Compared with the reference quarter of 2010, revenues of the RHI
Group rose by 12.7% to EUR 429.8 million in the third quarter of
2011. The operating result of the third quarter, at EUR 39.2 million,
exceeds the level of the reference period of 2010 of EUR 32.8
million; the operating result margin was thus half a percentage point
higher than in the third quarter of 2010.

At September 30, 2011 the equity ratio amounted to 24.5%, which
corresponds to an increase by 2 percentage points on the second
quarter of 2011. Cash and cash equivalents declined from EUR 86.6
million to EUR 74.6 million, which was primarily due to the purchase
consideration payments for the acquisitions in Norway and Ireland. At
the same time, net debt rose from EUR 346.9 million on July 1, 2011
to EUR 356.6 million.

Q1 - Q3
in EUR million 2011 2010 Change
Revenues 1,280.7 122.0 14.1%
Operating result1) 108.4 107.2 1.1%
Operating result margin1) 8.5% 9.6% (1.1) PP
EBIT 108.4 96.7 12.1%
EBIT margin 8.5% 8.6% (0.1) PP
Profit before income taxes 88.9 83.3 6.7%
Profit 90.0 88.8 1.4%
Net cash flow from operating activities 74.9 (4.9) 1,628.6%
Investments in property, plant and
equipment and in intangible assets 32.2 30.4 5.9%
Number of employees at September 30 8,001 7,370 8.6%

1) EBIT before restructuring expenses

Steel Division
In the first three quarters of 2011, the Steel Division realized an increase in
revenues of 14.6% compared to same period of 2010. The operating result, at EUR
47.1 million, slightly exceeded the prior-year reference figure of EUR 46.3
million.

Despite a decline in world steel output by 2.4%, RHI´s Steel Division
increased its revenues by roughly 1% in comparison with the previous
quarter, which was due to further price increases related to higher
raw material costs. The operating result, at EUR 20.4 million, was
only slightly lower than in the previous quarter, when it amounted to
EUR 20.6 million.

Industrial Division Revenues of the Industrial Division, at EUR 432.8
million in the first three quarters, clearly exceeded the prior-year
figure of EUR 382.4 million. For seasonal reasons revenues in the
Industrial Division are generally weaker in the third quarter than in
the rest of the year. At EUR 138.9 million, revenues of the third
quarter of 2011 were down approx. 7% on the previous quarter. The
decline in the margin to 9.9%, versus 12.2% in the second quarter, is
largely due to higher raw material costs, and here especially to the
prices of zirconium sand, which is applied for refractory products
for the glass industry.

Raw Materials Division In the third quarter of 2011 two important
steps were taken to improve the backward integration of the Group:
with effect from September 30, 2011, RHI acquired Premier Periclase
Ltd., Ireland. Premier Periclase Ltd. produces roughly 70,000 annual
tons of seawater-based large crystal sintered magnesia in the north
of Dublin with 109 employees. The closing of the acquisition of SMA
Mineral Magnesia AS, Norway, also took place with effect from
September 30, 2011. Following these acquisitions and the capacity
expansion at the production site Eskisehir in Turkey, RHI will reach
a self-sufficiency level for magnesia raw materials of roughly 80% in
mid-2012.

Outlook Based on the capacity reduction in the steel industry as well
as the conservative investment and ordering behavior of customers in
the industrial segment, RHI expects business to slow down moderately
in the coming months. However, this trend could come to an end again
in the second quarter of 2012. The World Steel Association forecasts
an increase in steel output of approx. 5.4% for the year 2012. The
volume produced in China will continue to grow above average at 6%
and Europe will, despite major regional differences, reach the record
production level of 2007 with a growth rate of 2.5%.

RHI is confident that the Group`s revenues of the second half of the
year will match the revenues of the first half, despite a decline in
steel production. In the fourth quarter, the Group´s EBIT will remain
at the level of the third quarter due to lower capacity utilization
at the RHI plants.

The quarterly report III/2011 and the online version are available on
the RHI website www.rhi-ag.com.

Further inquiry note:
RHI AG
Investor Relations
Mag. Barbara Potisk-Eibensteiner
Tel: +43-1-50213-6123
Email: barbara.potisk@rhi-ag.com

end of announcement euro adhoc
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company: RHI AG
Wienerbergstrasse 9
A-1100 Wien
phone: +43 (0)50213-6123
FAX: +43 (0)50213-6130
mail: rhi@rhi-ag.com
WWW: http://www.rhi-ag.com
sector: Refractories
ISIN: AT0000676903
indexes: ATX Prime, ATX
stockmarkets: official market: Wien
language: English