EANS-Adhoc: RHI AG / Problems in Norway strain earnings situation

--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------

Financial Figures/Balance Sheet/quarterly report
05.11.2013

3rd Quarter In the third quarter of 2013, revenues fell to EUR 427.4
million, down 4.0% on the previous quarter. While the revenues of the
Steel Division declined by 3.6% because business in Europe was weaker
than expected, the Industrial Division's revenues fell by 4.7%
especially due to the postponement of projects in the business unit
glass.

The operating result in the past quarter amounted to EUR 32.2 million
and is burdened by technical problems in the newly constructed fusion
plant in Norway totaling roughly EUR 12 million, and by negative
currency effects. Compared with the operating result of the second
quarter of 2013, which was adversely affected by negative one-off
effects of EUR 11 million, this corresponds to an increase by 18.4%.
The operating result margin rose from 6.1% to 7.5%.

EBIT amounted to EUR 30.7 million in the third quarter of 2013 and
was influenced by write-offs of EUR 1.9 million in China resulting
from product and process enhancements. The decline in EBIT compared
to the previous quarter is primarily attributable to the positive
effects from the termination of the US Chapter 11 proceedings
recorded in the second quarter of 2013. The EBIT margin amounted to
7.2% in the past quarter. The tax rate stood at 28.4%.

Equity amounted to EUR 525.6 million at the balance sheet date on
September 30, 2013, after EUR 480.5 million at December 31, 2012. The
equity ratio thus rose from 26.0% at the end of the financial year
2012 to 28.9% as of September 30, 2013. Cash and cash equivalents
rose from EUR 121.3 million in the second quarter of 2013 to EUR
170.3 million due to strong cash flow generation.

Net cash flow from operating activities amounted to EUR 53.7 million
and cash flow from investing activities to EUR (14.1) million in the
past quarter. Consequently, net debt fell from EUR 464.2 million to
EUR 430.8 million. The gearing ratio declined from 88.3% to 82.0%.

in EUR million Q3/2013 Q2/2013 Delta Q3/2012 Delta
Revenues 427.4 445.2 (4.0)% 459.9 (7.1)%
EBITDA 50.2 102.2 (50.9)% 72.8 (31.0)%
EBITDA margin 11.7% 23.0% (11.3)pp 15.8% (4.1)pp
Operating result 1) 32.2 27.2 18.4% 50.3 (36.0)%
Operating result margin 7.5% 6.1% 1.4pp 10.9% (3.4)pp
EBIT 30.7 84.0 (63.5)% 56.6 (45.8)%
EBIT margin 7.2% 18.9% (11.7)pp 12.3% (5.1)pp
Profit before income taxes 25.0 75.6 (66.9)% 50.5 (50.5)%
Profit 17.9 60.5 (70.4)% 23.3 (23.2)%

1) EBIT before restructuring costs and result from Chapter 11 proceedings

9M/2013
Revenues in the first nine months of the year 2013 fell by 5.4% compared with
the same period of 2012 and amounted to EUR 1,298.1 million. Although sales
volume in the Steel Division dropped by 6.3% in a weak economic environment, the
decline in revenues was more moderate at 3.4% due to the consistent
implementation of a sales strategy focusing on profitability and an improved
product mix. Revenues in the Industrial Division decreased by 8.0% because of
weaker project business in the segment environment, energy, chemicals, and due
to project postponements in the business unit glass.

The decline in the operating result by 17.9% to EUR 108.8 million is
attributable to the technical problems which occurred during the start-up phase
of the newly established fusion plant in Norway, lower capacity utilization at
the production sites and negative exchange rate effects.

Due to one-off effects related to the termination of the Chapter 11 proceedings
and the closure of the site in Duisburg, Germany, EBIT rose from EUR 134.3
million to EUR 164.1 million. The EBIT margin thus increased from 9.8% to 12.6%.

in EUR million 9M/2013 9M/2012 Delta
Revenues 1,298.1 1,372.7 (5.4)%
EBITDA 218.3 181.0 20.6%
EBITDA margin 16.8% 13.2% 3.6pp
Operating result 1) 108.8 132.6 (17.9)%
Operating result margin 8.4% 9.7% (1.3)pp
EBIT 164.1 134.3 22.2%
EBIT margin 12.6% 9.8% 2.8pp
Profit before income taxes 141.4 124.0 14.0%
Profit 101.2 85.6 18.2%

1) EBIT before restructuring costs and result from Chapter 11 proceedings

Outlook
Provided that the macroeconomic environment remains stable and with no changes
in exchange rates, RHI expects the fourth quarter of 2013 to be the strongest
quarter of the Industrial Division in terms of revenues due to delays of
deliveries in the third quarter, and revenues to increase slightly in the Steel
Division in comparison with the third quarter of 2013. The operating result is
expected to be negatively affected by roughly EUR 10 million in the fourth
quarter due to the technical problems in Norway, which are still unresolved. As
soon as the results of the analyses currently carried out are available, RHI
will report on them.

For the full year 2013, RHI expects revenues to be slightly below the level of
the previous year. The operating result margin is expected to fall significantly
short of that of the year 2012 due to insufficient coverage of fixed costs
resulting from low capacity utilization, negative currency effects and the
above-mentioned burden on the result in Norway.

The report on the third 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
--------------------------------------------------------------------------------

issuer: RHI AG
Wienerbergstrasse 9
A-1100 Wien
phone: +43 (0)50213-6676
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