EANS-Adhoc: RHI AG
Result influenced by one-off effects in Q2
06.08.2013 – 07:36
-------------------------------------------------------------------------------- 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. -------------------------------------------------------------------------------- Mid Year Results/6-month report 06.08.2013 2nd Quarter In the second quarter of 2013, RHI Group's revenues rose by 4.6% compared with the previous quarter and amounted to EUR 445.2 million. While revenues of the Industrial Division decreased by 7.5% due to the seasonally weak cement business, the Steel Division recorded an 11.6% increase due to the integration of the Indian company Orient Refractories Ltd., which was acquired at the end of April, into the reporting of the RHI Group. The operating result amounted to EUR 27.2 million in the past quarter and is adversely affected by negative currency effects and expenses related to the changes in the Management Board of RHI AG adding up to roughly EUR 11 million. Compared with the operating result of the first quarter of 2013 of EUR 49.4 million, this is equivalent to a decrease by 44.9%. The operating result margin fell from 11.6% to 6.1%. EBIT amounted to EUR 84.0 million in the second quarter of 2013 and is influenced by positive effects from the termination of the Chapter 11 proceedings amounting to EUR 75.8 million and the formation of provisions for restructuring related to the announced closure of the plant in Duisburg, Germany, amounting to EUR 19.0 million. The EBIT margin improved significantly from 11.6% in the first quarter of 2013 to 18.9%. The tax rate was at 20.0% in the second quarter of 2013. The tax rate calculated from the cash flow item "income taxes paid" amounted to 13.0%. Equity amounted to EUR 525.6 million at the balance sheet date on June 30, 2013, after EUR 480.5 million at December 31, 2012. Consequently, the equity ratio rose from 26.0% at the end of the financial year 2012 to 28.8% at the end of the first half of 2013. Cash and cash equivalents decreased from EUR 152.4 million in the first quarter of 2013 to EUR 121.3 million, which was, among other things, due to the dividend payment of EUR 29.9 million. Net debt increased from EUR 444.6 million to EUR 464.2 million. As a result, the gearing ratio was up slightly from 86.9% to 88.3%. Net cash flow from operating activities amounted to EUR 25.5 million in the past quarter, and cash flow from investing activities to EUR (8.3) million. in EUR million Q2/2013 Q1/2013 Delta Q2/2012 Delta Revenues 445.2 425.5 4.6% 475.9 (6.5)% EBITDA 102.2 65.9 55.1% 60.6 68.6% EBITDA margin 23.0% 15.5% 7.5pp 12.7% 10.3pp Operating result 1) 27.2 49.4 (44.9)% 48.7 (44.1)% Operating result margin 6.1% 11.6% (5.5)pp 10.2% (4.1)pp EBIT 84.0 49.4 70.0% 44.1 90.5% EBIT margin 18.9% 11.6% 7.3pp 9.3% 9.6pp Profit before income taxes 75.6 40.8 85.3% 38.1 98.4% Profit 60.5 22.8 165.4% 30.3 99.7% 1) EBIT before restructuring costs and result from Chapter 11 proceedings First half-year Revenues in the first half of 2013 were down 4.6% on the first half of 2012 and amounted to EUR 870.7 million. Although sales volume of the Steel Division declined by 7.7% in a challenging market environment, the decrease in revenues was more moderate, at 5.7%, because of price adjustments and an improved product mix. Revenues in the Industrial Division dropped by 1.5% due to weaker project business in the business unit Environment, Energy, Chemicals. The 6.9% decline in the operating result to EUR 76.6 million is attributable to a weaker performance of the Raw Materials Division and the one-off expenses recorded in the second quarter. The operating result margin amounted to 8.8% in the first half of 2013, after 9.0% in the same period of the previous year. Due to one-off effects related to the termination of the Chapter 11 proceedings and the closure of the plant in Duisburg, Germany, totaling EUR 56.8 million, EBIT rose from EUR 77.7 million to EUR 133.4 million. The EBIT margin consequently rose from 8.5% to 15.3%. in EUR million H1/2013 H1/2012 Delta Revenues 870.7 912.8 (4.6)% EBITDA 168.1 108.2 55.4% EBITDA margin 19.3% 11.9% 7.4pp Operating result 1) 76.6 82.3 (6.9)% Operating result margin 8.8% 9.0% (0.2)pp EBIT 133.4 77.7 71.7% EBIT margin 15.3% 8.5% 6.8pp Profit before income taxes 116.4 73.5 58.4% Profit 83.3 62.3 33.7% 1) EBIT before restructuring costs and result from Chapter 11 proceedings Outlook In a stable macroeconomic environment and with unchanged exchange rates, RHI expects similar revenues in the Steel Division for the third quarter of 2013 as in the second quarter of 2013, and higher revenues in the Industrial Division as projects are expected to be delivered in the business units environment, energy, chemicals and nonferrous metals. The operating result margin is expected to exceed the level of the second quarter of 2013 despite the problems that occurred during causter loading in the newly established fusion plant in Norway. RHI still expects revenues at the level of the previous year for the full year 2013. However, realizing the operating result margin of the year 2012 appears to be challenging in view of the one-off expenses in the second quarter as well as the negative effects from Norway, which are expected for the second half of the year. As a result of the positive effects from the closing of the Chapter 11 proceedings, the EBIT margin will continue to significantly exceed the prior-year level. 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 -------------------------------------------------------------------------------- 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