RHI with favourable revenue and earnings increase in Q3

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The RHI Group reported revenue in the amount of EUR 998.6
million in the first three quarters of 2006 (previous year: EUR 893.9 million), an increase by 11.7%. In the third quarter revenue amounted to EUR 331.8 million (previous year: EUR 292.0 million) as a result of the good development of the refractories business worldwide and exceeded the figure of the previous year by 13.6%. Accumulated EBITDA in the RHI Group rose 20.7% to EUR 130.5 million (previous year: EUR 108.1 million); EBIT, at EUR 97.5 million (previous year:
EUR 78,3 million), was up 24.5%. The EBIT margin in the group improved to 9.8% (previous year: 8.8%). Profit before income taxes from continuing operations (Refractories, other) increased by 32.4% to EUR 79.3 million (previous year: EUR 59.9 million), and profit after taxes rose 29.9% to EUR 71.3 million. Profit from discontinued operations (Insulating), which was realised with the closing of the Heraklith transaction in June 2006, amounted to EUR 60.8 million (previous year: EUR 9.8 million). The RHI Group’s profit thus increased by 104.2 % auf EUR 132.1 million (previous year: EUR 64.7 million) in the first three quarters of 2006.

With the focus on refractories, RHI shows a new reporting structure. Since two new members will be added to RHI’s Board of Management in 2007 to strengthen customer care and market penetration in the segments "Steel" and "Industrial", reporting already now follows this new management structure. In addition, RHI reports on "Raw Materials, Production, Other" in a third segment. This segment shows the strategic value added by the mining, raw materials and production plants, which predominantly supply the Steel and Industrial segments (for details see Q3 report).

The refractories business continued to develop well in the third quarter of 2006, accumulated sales volume 2006 rose 8.4% to 1,357,000 tonnes. Consolidated revenue improved by 13.6% in the third quarter, accumulated 2006 by 11.7%. Revenue in the Steel segment in Q3 exceeded the previous year by 15.8%, in the Industrial segment by 8.9%; accumulated revenue in the Steel segment was up 11.3%, and 11.8% in the Industrial segment. The overall positive development in the Steel and Industrial segments reflects the favourable economic situation and the worldwide increase in output in RHI’s client industries. Incoming orders and the good economic situation of RHI’s customer industries indicate a positive business development for the fourth quarter 2006. Forecasts for results in 2007 are also positive, provided there are no unexpected cost, cyclical or exchange rate pressures. In addition to industrial cycles, especially in the steel industry, raw material and energy costs as well as monetary parity, business success is significantly influenced by the consolidation and modernisation of RHI’s client industries worldwide.

Q1 - Q3 Change in EUR million 2006 2005 in % Revenue 998.6 893.9 11.7 EBITDA 130.5 108.1 20.7 EBITDA margin 13.1% 12.1% 8.1 EBIT 97.5 78.3 24.5 EBIT margin 9.8% 8.8% 11.5 Profit before income taxes 79.3 59.9 32.4 Profit from continuing operations 71.3 54.9 29.9 Profit from discontinued operations 60.8 9.8 520.4 Profit 132.1 64.7 104.2

The complete Quarterly Report III/2006 is available on RHI’s website under www.rhi-ag.com.

Further inquiry note:
Investor Relations
Dkfm. Markus Richter
Tel: +43-1-50213-6123
Email: markus.richter@rhi-ag.com

end of announcement euro adhoc

emitter: RHI AG
Wienerbergstrasse 11
A-1100 Wien
phone: +43 1 50213-6123
FAX: +43 1 50213-6130
mail: rhi@rhi-ag.com
WWW: http://www.rhi-ag.com
ISIN: AT0000676903
indexes: ATX Prime
stockmarkets: official dealing: Wiener Börse AG
sector: Refractories
language: English