EANS-Adhoc: RHI AG / RHI confirms full-year guidance with Q1 results

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Financial Figures/Balance Sheet/quarterly report
15.05.2013

Group revenues in the first quarter of 2013 were down 2.6% on the
comparable quarter of 2012 and amounted to EUR 425.5 million. While
revenues in the Steel Division fell by 8.1% in a market environment
that continued to be difficult for cyclical reasons, the Industrial
Division recorded growth of 11.7% due to strong cement business and
the delivery of major projects in the nonferrous metals business
unit. The operating result of the first quarter was increased by
47.0% compared with the same period of 2012 despite the delayed
commissioning of the fusion lines in Norway and, at EUR 49.4 million,
also exceeded the level of the fourth quarter of 2012. As no
restructuring costs were incurred in the past quarter, the operating
result also corresponds to EBIT. The EBIT margin improved
significantly from 7.7% to 11.6%. Tax expenses in the first quarter
of 2013 include provisions for a current tax audit. The tax rate
calculated from the cash flow item "income taxes paid" amounted to
20.6%.

Equity amounted to EUR 511.6 million as of March 31, 2013, after EUR
480.5 million as of December 31, 2012. Due to the partial payment of
the purchase price for the Indian company Orient Refractories Ltd.,
cash and cash equivalents fell from EUR 185.7 million to EUR 152.4
million. Net debt rose from EUR 418.5 million to EUR 444.6 million.
The gearing ratio improved slightly from 87.1% to 86.9% due to the
higher equity. Net cash flow from operating activities amounted to
EUR 37.8 million despite a significant increase in working capital.
Net cash flow from investing activities in the past quarter amounted
to EUR (60.1) million and largely includes the acquisition of ORL.
The number of employees increased from 7,917 at December 31, 2012 to
7,976.

1st Quarter
in EUR million 2013 2012 1) Change
Revenues 425.5 436.9 (2.6%)
EBITDA 65.9 47.6 38.4%
EBITDA margin 15.5% 10.9% 4.6pp
Operating result 1) 49.4 33.6 47.0%
Operating result margin 11.6% 7.7% 3.9pp
EBIT 49.4 33.6 47.0%
EBIT margin 11.6% 7.7% 3.9pp
Profit before income taxes 40.8 35.4 15.3%
Profit 22.8 32.0 (28.8%)
Cashflow from operating activities 37.8 45.0 (16.0%)
Cashflow from investing activities (60.1) (41.9) 43.4%

Number of employees at end of
quarter 7,976 8,182 (2,5%)

1) For details on reclassifications see page 72 et seq. (other changes in
presentation)

Steel Division The Steel Division's revenues in the first quarter of
2013, at EUR 256.5 million, fell short of the revenues of the fourth
quarter of 2012 with EUR 264.7 million and the revenues of the 2012
comparative period with EUR 279.1 million. However, the operating
result rose from EUR 3.8 million in the fourth quarter of 2012 to EUR
20.5 million in the first quarter of 2013 despite a decline in
revenues, also clearly exceeding the figure of EUR 12.1 million in
the comparative quarter of 2012. The development of the operating
result margin reflects the consistent implementation of the sales
strategy. At 8.0%, it exceeded the 1.4% of the preceding quarter and
also that of the 2012 comparative period.

Industrial Division In the first quarter of 2013, revenues of the
Industrial Division, at EUR 159.7 million, fell short of the strong
revenues of EUR 186.9 million in the fourth quarter of 2012, but
significantly exceeded the revenues of the 2012 comparative period,
which amounted to EUR 143.0 million. The operating EBIT declined
slightly from EUR 26.7 million in the fourth quarter of 2012 to EUR
25.5 million in the first quarter of 2013, but was substantially
higher than that of the comparative quarter 2012 of EUR 14.3 million.
At 16.0%, the operating result margin exceeded the 14.3% of the
preceding quarter and also that of the comparative period of 2012.

Raw Materials Division Due to the projects implemented to increase
backward integration of raw materials, revenues in the Raw Materials
Division in the first quarter of 2013,at EUR 72.5 million, clearly
exceeded the figures of the fourth quarter of 2012 and the 2012
comparative period of EUR 55.7 million and EUR 60.2 million
respectively. The operating EBIT rose from EUR 1.3 million in the
fourth quarter of 2012 to EUR 3.4 million in the first quarter of
2013, but fell short of the EUR 7.2 million in the comparative
quarter of 2012. The increased start-up costs for the fusion line in
Norway ware partially compensated by the sale of land in Turkey. The
operating result margin, at 4.7%, exceeded that of the preceding
quarter of 2.3%, but was lower than in the comparative quarter of
2012.

Outlook In a stable macroeconomic environment and with unchanged
exchange rates, RHI expects a higher level of revenues in the Steel
Division for the second quarter of 2013, amongst other things due to
the full consolidation of the Indian Orient Refractories Ltd., and in
the Industrial Division slightly lower revenues than in the first
quarter of 2013. This is primarily attributable to the end of the
cement season. The operating result margin is expected to be in the
single-digit range due to changes in product mix, the higher share of
revenues of the Steel Division and negative effects from lower
capacity utilization.

For the full year 2013 RHI adheres to the outlook that revenues at a
similar level as in 2012 and a further improvement in the EBIT margin
(not including positive one-offs mentioned below) can be realized.

The payment of USD 40 million received in the second quarter of 2013
will be recognized as income from restructuring in the income
statement and will accordingly have a positive effect on EBIT.
Forming provisions related to the closure of the Duisburg plant leads
to restructuring costs in the income statement, which will, however,
be balanced out by the reversal of provisions related to the
termination of the Chapter 11 proceedings of the deconsolidated US
companies.

The report on the first quarter of 2013 is available on RHI's website
www.rhi- ag.com.

Further inquiry note:
RHI AG
Investor Relations
Mag. Simon Kuchelbacher
Tel: +43-1-50213-6676
Email: simon.kuchelbacher@rhi-ag.com

end of announcement euro adhoc
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issuer: 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