EANS-Adhoc: RHI AG Preliminary results 2012: New record level of revenues,
EBIT and investments for RHI
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annual result/preliminary result 2012
08.03.2013
Business Development
In a macro-economically challenging environment, the RHI Group's sales volume
dropped by 5.0% from 1,948,000 tons in the year 2011 to 1,850,000 tons, which
was primarily due to weaker steel business in Europe and weaker cement and glass
business in Asia.
Although sales volume was lower, revenues of the RHI Group reached a new record
level of EUR 1,835.7 million in 2012 (previous year: EUR 1,758.6 million). The
increase by 4.4% in comparison with 2011 is primarily attributable to shifts in
product mix, the positive effects of a weaker euro-dollar exchange rate as well
as pricing effects.
The operating result before restructuring effects increased by 10.6% in
comparison with the previous year, from EUR 148.6 million to EUR 164.4 million.
The balance of expenses and income from the reversal of impairment losses and
restructuring amounted to EUR 3.2 million and is related to the partial closure
of the ISO production line at the Bonnybridge plant, UK, and the sale of the
Isithebe plant in South Africa.
The Group's EBIT amounted to EUR 167.6 million in the past financial year,
exceeding the prior-year EBIT of EUR 150.9 million by 11.1%. The EBIT margin
improved from 8.6% in the year 2011 to 9.1% in the year 2012.
The profit for the year amounted to EUR 113.5 million in the past financial
year, after EUR 121.5 million in the previous year. Earnings per share decreased
from EUR 3.03 to EUR 2.85 in the year 2012.
The Management Board of RHI AG will propose a dividend of EUR 0.75 to the Annual
General Meeting on May 3, 2013.
Financial and Assets Position
Net cash flow from operating activities increased from EUR 124.4 million in the
year 2011 to EUR 161.1 million in the year 2012 due to a positive development of
the operating business and consistent working capital management.
Net cash flow from investing activities rose from EUR (105.5) million in the
previous year to EUR (165.9) million in the year 2012 as the self-sufficiency
level for magnesia raw materials was increased to 80% with the construction of
the smelter in Norway and the second rotary kiln in Turkey, the flow control
segment was strengthened through the acquisition of the remaining 50% share in
Stopinc AG, Switzerland, and a fourth tunnel kiln was built at the Dalian plant
in China.
The balance sheet total of the RHI Group increased by 9.5%, from EUR 1,689.9
million in the previous year to EUR 1,850.3 million in 2012, which was mainly
due to the above-mentioned investments.
The consolidated statement of financial position as of December 31, 2012 shows
net financial liabilities of EUR 418.5 million (previous year: EUR 361.5
million). That corresponds to roughly 1.8 times the EBITDA of the year 2012.
RHI continued to build up equity in 2012. At December 31, 2012 it amounted to
EUR 480.5 million (previous year: EUR 438.9 million). The equity ratio remained
stable at 26.0% due to the higher balance sheet total.
Steel Division
In a challenging market environment, in which many steel producers struggled
with losses resulting from the decline in demand, the sales volume of the Steel
Division was also down 7% year-on-year and amounted to 1,245,000 tons, thus even
slightly below the level of the year 2010. In contrast, revenues were maintained
stable at EUR 1,112.7 million after EUR 1,106.8 million in the previous year and
reflect the adjustments in pricing necessary due to soaring raw material prices,
and the more favorable regional mix. The operating result amounted to EUR 54.0
million in the past financial year after EUR 66.0 million in the previous year.
Industrial Division
Sales volume of the Industrial Division decreased by 7% to roughly 470,000 tons
in comparison with the previous year due to a shift in product mix and a
challenging environment in the glass industry. Despite the decline in volume,
revenues rose by 9.8% to a new record level of EUR 673.9 million after EUR 613.9
million in the year 2011. This increase is mainly attributable to a higher share
of the service business, the delivery of a major project in the ferrochrome
segment as well as a positive development in the business units nonferrous
metals and environment, energy chemicals. Both business units realized a
historic record in both revenues and contribution to earnings. The operating
result thus improved significantly from EUR 69.9 million to EUR 91.8 million in
the year 2012.
Raw Materials Division
Despite a difficult market environment, production in the Raw Materials Division
was at a very high level in the first half 2012, but could not be maintained
constant at this level throughout the year. As sales volume declined in the
Steel and Industrial Divisions, internal demand for raw materials dropped
accordingly. Revenues in the Raw Materials Division amounted to EUR 237.6
million in the past financial year, compared with EUR 208.3 million in the year
2011. The operating result of EUR 12.7 million in the year 2011 was increased to
EUR 18.6 million in 2012.
Outlook
RHI expects revenues to reach a similar level in the year 2013 as in 2012 if the
macroeconomic environment remains stable and exchange rates do not change. The
EBIT margin should continue to improve due to increased backward integration and
consistent cost management.
The expected lower growth rates in Europe require an adjustment of capacities in
order to ensure optimal utilization of the production plants. Therefore, a plant
concept is currently being evaluated in the RHI Group. The results are expected
in the first half of 2013.
RHI will invest some EUR 75 million in the year 2013, of which roughly 25% will
be used for environmental investments.
Preliminary Key Figures in EUR million 2012 2011 1) Delta
Balance sheet total 1,850.3 1,689.9 9.5%
Equity 480.5 438.9 9.5%
Equity ratio (in %) 26.0% 26.0% 0.0pp
Investments in PP&E and intangible assets 167.9 86.6 93.9%
Net debt 418.5 361.5 15.8%
Gearing ratio (in %)2) 87.1% 82.4% 4.7pp
Net debt / EBITDA 1.8 1.8 0.0
Working capital 479.6 473.8 1.2%
Working capital (in %) 26.1% 26.9% (0.8pp)
Capital employed 1,184.4 1,049.0 12.9%
Return on capital employed (in %) 11.6% 14.5% (2.9pp)
Net cash flow from operating activities 161.1 124.4 29.5%
Net cash flow from investing activities (165.9) (105.5) 57.3%
Net cash flow from financing activities 47.8 67.3 (29.0%)
1) after reclassification (for explanations refer to the report for the third
quarter 2012)
2) without non-current personnel provisions
Preliminary Key Figures 2012
in EUR Mio 2012 2011 1) Delta 4Q/12 4Q/11 1) Delta
Revenues 1,835.7 1,758.6 4.4% 463.0 477.9 (3.1%)
Steel Division 1,112.7 1,106.8 0.5% 264.7 281.5 (6.0%)
Industrial Division 673.9 613.9 9.8% 186.9 181.1 3.2%
Raw Materials Division
External revenues 49.1 37.9 29.6% 11.4 15.3 (25.5%)
Internal revenues 188.5 170.4 10.6% 44.3 39.6 11.9%
EBITDA 229.4 204.1 12.4% 48.4 56.1 (13.7%)
EBITDA margin 12.5% 11.6% 0.9pp 10.5% 11.7% (1.2pp)
Operating result1) 164.4 148.6 10.6% 31.8 40.2 (20.9%)
Steel Division 54.0 66.0 (18.2%) 3.8 17.2 (77.9%)
Industrial Division 91.8 69.9 31.3% 26.7 19.3 38.3%
Raw Materials Division 18.6 12.7 46.5% 1.3 3.7 (64.9%)
Operating result margin 9.0% 8.4% 0.6pp 6.9% 8.4% (1.5pp)
Steel Division 4.9% 6.0% (1.1pp) 1.4% 6.1% (4.7pp)
Industrial Division 13.6% 11.4% 2.2pp 14.3% 10.7% 3.6pp
Raw Materials Division 7.8% 6.1% 1.7pp 2.3% 6.7% (4.4pp)
EBIT 167.6 150.9 11.1% 33.3 42.5 (21.6%)
Steel Division 50.1 67.4 (25.7%) 5.1 18.6 (72.6%)
Industrial Division 91.8 73.4 25.1% 27.1 22.8 18.9%
Raw Materials Division 25.7 10.1 154.5% 1.1 1.1 0.0%
EBIT margin 9.1% 8.6% 0.5pp 7.2% 8.9% (1.7pp)
Steel Division 4.5% 6.1% (1.6pp) 1.9% 6.6% (4.7pp)
Industrial Division 13.6% 12.0% 1.6pp 14.5% 12.6% 1.9pp
Raw Materials Division 10.8% 4.8% 6.0pp 2.0% 2.0% 0.0pp
Financial results (21.3) (30.9) (31.1%) (6.6) (6.8) (2.9%)
Result from associates 5.3 5.5 (3.6%) 0.9 0.9 0.0%
Profit before income taxes 151.6 125.5 20.8% 27.6 36.6 (24.6%)
Income taxes (38.1) (4.7) 710.6% 0.3 (5.8) (105.2%)
Income taxes (in %) 25.1% 3.7% 21.4pp (1.1%) 15.8% (16.9pp)
Profit from continuing
operations 113.5 120.8 (6.0%) 27.9 30.8 (9.4%)
Profit from discontinued
operations 0.0 0.7 (100.0%) 0.0 0.7 (100.0%)
Profit for the year 113.5 121.5 (6.6%) 27.9 31.5 (11.4%)
Earnings per share in EUR
Continuing operations 2.85 3.03 0.71 0.77
Discontinued operations 0.00 0.02 0.00 0.02
1) after reclassification (for explanations refer to the report for the third
quarter 2012)
2) before restructuring effects
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