RHI Magnesita Sees Strong Revenue Growth in 2018 First Quarter
According to RHI Magnesita, its first quarter trading performance continues to reflect the positive trends seen in the second half of 2017, as well as the benefits of the company’s high level of vertical integration.
RHI Magnesita N.V. recently announced a trading update for the 2018 first quarter. Revenue for the quarter was €745 million (approximately $872.1 million), 23% higher than the 2017 first quarter on a constant currency basis (14% higher on a reported basis). According to RHI Magnesita, its first quarter trading performance continues to reflect the positive trends seen in the second half of 2017, as well as the benefits of the company’s high level of vertical integration. Price increases promoted strong development in revenues, more than offsetting higher raw material input costs.
Steel production growth year-over-year was robust in South America, MEA and Asia-Pacific, and slightly positive in North America and Europe. RHI Magnesita’s steel division has outperformed these trends so far this year, with the exception of South America. While it is too early to gauge the effects from the imposition of trade tariffs, the group believes its diversified production base (in 16 countries across four continents) and client base (10,000 plants in more than 180 countries) will cushion any significant impact from these developments, as long as industrial output on a global basis is unaffected.
In the Industrial division, the Nonferrous metals segment performed stronger than last year’s first quarter with high margin order intakes so far. In EEC (Environment, Energy & Chemicals), demand is increasing in China and CIS, with the installation business picking up. The Cement/Lime segment is flat, as result of continued low capacity utilization in China and Brazil, as well as some market share losses due to pricing. The Minerals segment has benefitted from raw material price increases and supply shortage caused by the stricter environmental enforcement in China.
RHI Magnesita expects its business to develop positively in 2018 and anticipates full year operating results to continue accruing the benefits from pricing, additional synergies and network optimization, despite currency headwinds. For more information, visit www.rhimagnesita.com.