EANS-Adhoc: Preliminary results of RHI AG: structural measures, cost management and strong fourth quarter enabled clearly positive result

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11.03.2010

•Restructuring programme shows clearly positive effects •Significant
increase in operating margin to 9.9% in the fourth quarter •Revenues
2009: EUR 1,236.9 million (-22.5%) •Operating result: EUR 79.0
million (-52.5%) •EBIT: EUR 54.8 million, affected by restructuring
measures and impairment losses of EUR 24.2 million •Increase in
operating cash flow by roughly 64% to EUR 202.0 million •Significant
improvement in balance sheet indicators •Reduction of net debt from
EUR 375.0 million to EUR 233.2 million •Equity raised by 25% to EUR
227.8 million •Positive demand continues in the first quarter of 2010

2009 2008 1) 2009 2008 1)
Q4 Q4
Sales volume (thousand tonnes) 1,436.2 1,952.6 426.0 390.0

in EUR million
Revenues 1,236.9 1,596.7 336.7 375.8
Steel Division 703.6 957.6 206.2 208.5
Industrial Division 513.6 605.6 125.9 158.8
Raw Materials Division
External revenues 19.7 33.5 4.6 8.5
Internal revenues 439.1 583.8 128.5 138.0
Pre restructuring EBIT 2) 79.0 166.2 33.5 18.2
Steel Division 18.8 76.5 13.4 0.9
Industrial Division 75.5 79.3 22.0 21.9
Raw Materials Division 10.5 28.2 6.7 -2.0
Holding / other 25.8 17.8 8.6 -2.6
EBIT 54.8 148.4 22.0 0.4
Steel Division 11.9 71.4 10.0 4.2
Industrial Division 67.0 75.5 19.2 18.1
Raw Materials Division 6.1 19.3 3.0 10.9
Holding / other 30.2 17.8 10.2 2.6

1) adjusted

2) before impairment losses and restructuring expenses

Market environment The year 2009 was characterised by a massive slump
in steel output in Europe and North American in the first half and by
a recovery in the second half of the year. Over the entire year,
steel production recorded a decline by 30% in the EU27 and by 34% in
North America. In contrast, steel output in China rose by 13.5%. The
cement market suffered a drop of up to 50% in countries including the
UK and Russia, while markets like China and the Near/Middle East
remained unaffected by the crisis. The glass industry focused its
investments only on repairs to extend useful life, and the low raw
material prices triggered an investment stop in the nonferrous metals
industry.

Business development With revenues dropping by 22.5% to EUR 1,236.9
million (after EUR 1,596.7 million), the operating result amounted to
EUR 79.0 million (after EUR 166.2 million). EBIT equalled EUR 54.8
million (after restructuring measures and impairment losses totalling
EUR 24.2 million) versus EUR 148.4 million in the financial year
2008. This value was achieved through capacity adjustments in all
three divisions, an extensive cost-cutting programme and the
resulting significantly improved cost structure. The operating margin
amounted to 6.4% in the whole year 2009, but significantly improved
to 9.9 % in Q4, slightly below the margin of 10.4% in the year 2008.

The Steel Division defended its position as a full-range supplier
with innovative solutions in the core markets in 2009 and expanded it
in important new markets such as Brazil. Revenues amounted to EUR
703.6 million (after EUR 957.6 million) and, at EUR 206.2 million in
the fourth quarter, exceeded the level of the third quarter of 2009
by 15%.

The Industrial Division benefited from projects dating back to 2008
in the first quarter of 2009 and was affected by a drop in demand
from the second quarter 2009. With revenues of EUR 513.6 million
(after EUR 605.6 million), the operating result of EUR 75.5 million
was only slightly below the prior-year figure von EUR 79.3 million.

The operating result of the Raw Materials Division equalled EUR 10.5
million (previous year EUR 28.2 million) and was above all
attributable to the underutilisation of capacity in the first three
quarters.

Measures The initiated cost-cutting programme resulted in savings of
roughly EUR 53 million for 2009, which exceeded the target of EUR 40
million. Through active cash flow management the cash flow from
operating activities was increased by 64% to EUR 202.0 million. In
addition, RHI introduced a new profit centre structure in 2009, which
gives the company an orientation closer to the market and the
customer. A new plant concept allows flexible adjustment of
capacities to the market conditions. The project "Simplification"
will lead to simpler internal processes. Overall, the course for
future growth was set through these measures.

Balance sheet Net debt as of 31.12.2009 was cut by 38% compared to
the prior-year balance sheet date and amounted to EUR 233.2 million.
The equity ratio amounted to 17.9% at 31.12.2009 (after 13.7%).

Outlook From the current perspective, RHI expects the positive trend
to continue in the Steel Division in the first half of 2010. The
level of revenues and earnings in the first quarter will be
comparable to that of the fourth quarter of 2009. The development of
the industrial business, which is to a great extent project-driven,
will largely depend ton the expected infrastructure projects in
Europe and North America, the development of raw material prices and
the customers´ possibilities to finance projects. The Raw Materials
Division expects largely full capacity utilisation at its western
plants in 2010.

RHI expects further growth in the Steel Division for the whole year
2010, while the Industrial Division will see a development similar to
the year 2009. Due to the market recovery, the expansion of the
market position and an improved cost structure, RHI expects revenues
and earnings to increase.

All of the above data for 2009 are preliminary. The final results and
the consolidated balance sheet 2009 will be published following the
approval of the financial statements by the Supervisory Board on 26
March.

end of announcement euro adhoc
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ots Originaltext: RHI AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

RHI AG

Investor Relations

Mag. Barbara Potisk-Eibensteiner

Tel: +43-1-50213-6123

Email: barbara.potisk@rhi-ag.com

Branche: Refractories
ISIN: AT0000676903
WKN: 874182
Index: ATX Prime, ATX
Börsen: Wien / official dealing