RHI Magnesita N.V. Trading Update (2488W)
November 13 2017 - 2:00AM
UK Regulatory
TIDMRHIM
RNS Number : 2488W
RHI Magnesita N.V.
13 November 2017
RHI Magnesita N.V.
("RHI Magnesita" or the "Company")
TRADING UPDATE
13 November 2017, London. RHI Magnesita N.V. (LSE: RHIM), a
global leading supplier of refractory products, systems and
services, today announces a trading update as a combined group for
the nine months to September 2017.
OVERVIEW
RHI Magnesita's year-to-date trading performance has improved
significantly since Q2, as underlying market conditions reflect a
recovery of the activity levels seen in the first half. Revenue of
the combined group for the nine months to September 2017 was
EUR2,052.3m, 9.3% higher than the comparative period. Operating
EBITA was EUR224.6m, an increase of 23.7% on 9M2016, with a 10.9%
Operating EBITA margin.
Although global industrial production has been stable for many
years, 2017 has been a year of synchronized growth in basic
industries across the globe. Steel production is growing
simultaneously in all regions where the Company has a relevant
market position. In this context, RHI Magnesita's revenue for 2017
is expected to grow at high single digits, comfortably above volume
growth seen in our customers' industries.
STEEL DIVISION
Regional steel production trends continue to be strong, with
global volumes, as reported by the World Steel Association, 5.2%
higher than last year's comparative period. Steel production growth
in Brazil is up 9%, China and India are up 5% and 6%, respectively,
with a 4% growth in North America and the European Union. RHI
Magnesita's steel division's performance reflects these trends with
trading activity being above last year's comparative period.
INDUSTRIAL DIVISION
The Industrial division is performing in line with management
expectations. On a business unit level the Cement/Lime segment has
been strong, especially in Brazil and Asia Pacific, whilst EEC
(Environment, Energy & Chemicals) is below expectations mainly
due to lower construction business in North America. We expect
revenue for the industrial division to improve in the Q4, and to be
in line with management expectations for the full year.
COMBINATION AND INTEGRATION
We continue to successfully implement our planned integration
actions and remain very confident in achieving our synergy target
of EUR70.0m p.a. by 2020.
FINANCIAL CONDITION
Our financial position continues to strengthen, with Net
Debt/EBITDA below 2.5x upon listing (accounting for the cash
consideration disbursements) and significantly below the level
anticipated in the combination announcement one year ago. Our focus
on working capital management and cash generation remains strong,
and we continue to be well financed with high liquidity and a
robust balance sheet and deleveraging profile.
In addition to the strong cash flows from the underlying
business, we expect by year-end EUR40m of proceeds from the
divestments of Magnesita's EU Mag-Carbon and RHI's EU Dolomite
businesses and an additional EUR15m in working capital
monetisation.
ANALYST PRESENTATION
The company will host a presentation to analysts today to
provide an overview of the company, its end markets and business
strategy. No material new information, forward looking financial
information or update on trading will be provided. The presentation
will be made available on the company's investor relations website
from 0900 GMT.
About RHI Magnesita
RHI Magnesita is the result of the combination of RHI and
Magnesita to form the global leading supplier of high-grade
refractory products, systems and services which are indispensable
for industrial high-temperature processes exceeding 1,200degC in a
wide range of industries, including steel, cement, non-ferrous
metals, and glass, among others. With a vertically integrated value
chain, from raw materials to refractory products and full
performance-based solutions, RHI Magnesita serves more than 10,000
customers in nearly all countries around the world.
The Company has unmatched geographic diversification with more
than 14,000 employees in 35 main production sites and more than 70
sales offices. RHI Magnesita intends to use its global leadership
position in terms of revenue, greater scale, complementary product
portfolio and diversified geographic presence around the world to
target opportunistically those countries and regions benefitting
from more dynamic economic growth prospects.
For more information please visit: www.rhimagnesita.com
Enquiries:
RHI Magnesita N.V.
Eduardo Gotilla, Head of Corporate Finance and Investor
Relations
Tel +44 (0) 20 3823 3661
E-mail: eduardo.gotilla@rhimagnesita.com
Stefan Rathausky, Head of Corporate Communications
Tel +43 50213-6059
E-mail: stefan.rathausky@rhimagnesita.com
Brunswick Group (Financial PR)
Carole Cable
Tel +44 (0) 20 7404 5959
This information is provided by RNS
The company news service from the London Stock Exchange
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