Ceramic Industry

RHI AG Reports Improved First Half Revenues and Earnings

August 12, 2010

RHI AG continued its upward trend in the first half of 2010 and realized significant improvements in revenues and earning compared to the same period last year. Revenues for the first half of 2010 rose by 22.5% to €740.7 million (approximately $969 million), compared to €604.5 million (about $790 million).

The operating result increased by 139.2%, up from €31.1 million (~ $40 million) in the first half of 2009 to €74.4 million (~ $96.8 million). The pre-restructuring EBIT margin rose from 5.1% to 10%. The group’s EBIT equaled €70.3 million (~ $91.9 million) in the 2010 first half. The balance of the reduction in carrying value and the insurance compensation for the plants destroyed by the earthquake in Chile was reflected in a positive one-off effect of €7.9 million (~ $10.19 million). Impairment losses and restructuring expenses amounted to €-4.1 million (~ $5 million) in the first half of 2010. The group’s EBIT thus equaled €70.3 million (~ $90 million), compared to €21.4 million (~ $27 million) for the first half of 2009.

Second quarter revenues also showed a positive development compared to 2009. Revenues were up 16.5% on the previous quarter, and the quarterly EBIT was increased from €31.7 million (~ $40.89 million) to €38.6 million (~ $49.6 million). As of July 2, the equity ratio increased to 22.3% vs. 20% as of March 31. Compared with the half-year balance sheet date of the previous year, equity rose by 59.5% from €196.7 million (~ $4252 million) to €313.8 million (~ $404 million); net debt declined by 24.0% from €308.4 million (~ $397 million) in the reference period to €234.4 million (~ $30 million).

For more information, visit www.rhi-ag.com.