EANS-Adhoc: RHI AG / Preliminary results 2014

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annual result
23.01.2015

According to the preliminary, unaudited figures, the RHI Group
concluded the financial year 2014 with revenues of approximately EUR
1,720 million and an operating result exceeding expectations and
amounting to over EUR 140 million. The operating result margin will
thus amount to more than 8% after 7.2% in the previous year. In the
fourth quarter of 2014, revenues of roughly EUR 465 million and an
operating result of over EUR 40 million were realized. In terms of
revenues, the fourth quarter thus exceeds the third quarter of 2014
by approximately 12% and the fourth quarter of 2013 by roughly 2%.

In the business unit glass, no significant improvement of the results
is to be expected in the years to come due to difficult market
conditions and worldwide excess capacities for fused cast products.
The management consequently introduced sustainable savings of EUR 3.5
million in the year 2014. In addition, raw materials for applications
in the Industrial business, which were previously purchased
externally, will be produced at the American site starting in the
year 2015 in order to improve capacity utilization. Despite these
measures, which are already being implemented, an impairment loss on
existing assets of approximately EUR 12 million has to be recorded at
the end of the year 2014.

At the plant in Porsgrunn, Norway, significant progress was made in
the production process in the newly established fusion plant during
the year 2014. Nevertheless, further optimization measures are
required in the upstream production of caustic magnesia in order to
achieve the targeted costs. Therefore the Management Board of RHI AG
adopted comprehensive measures which provide for a temporary
reduction of the production volume due to the low market prices of
fused magnesia. The premium-grade qualities for customers in the
steel industry will still be supplied with raw materials from Norway.
These measures secure the continued operation of the plant and will
halve the negative contribution to earnings in the year 2015.
Nevertheless, an impairment of the assets of roughly EUR 7 million is
necessary in the year 2014.

In Europe, the RHI Group is optimizing raw material treatment. For
this reason, production at the site in Kretz, Germany, will be
discontinued and assigned to other RHI plants. This will result in
sustainable annual savings of approximately EUR 3.5 million, of which
roughly EUR 0.7 million were already realized in the past financial
year due to a partial shift of volumes. The optimization of raw
material treatment leads to a one-off negative effect of roughly EUR
10 million in the year 2014 and will have an effect on cash in the
coming years.

If the above-mentioned one-off effects are deducted from the
operating result, the EBIT for the financial year 2014 amounts to
more than EUR 110 million.

The Management Board of RHI AG intends to propose a dividend of EUR
0.75 to the Annual General Meeting on May 8, 2015.

Due to the positive development of incoming orders during the past
months and the measures taken by the management, RHI expects a
year-on-year increase in revenues by roughly 3% and an operating
result margin of approximately 9% in the current macroeconomic
environment.If the US dollar continues to strengthen against the
euro, further positive effects on revenues and EBIT can be expected.

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)50213-6676
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