Austrian fire-proof materials maker RHI, recovering strongly from 2001 losses after a drastic restructuring, said on 18 December 2002 that 2002 net profit would exceed its own initial forecast by 18%….
Austrian fire-proof materials maker RHI, recovering strongly from 2001 losses after a drastic restructuring, said on 18 December 2002 that 2002 net profit would exceed its own initial forecast by 18%. RHI also said operating profit, or earnings before interest and tax (EBIT), would be over EUR 80 million or 15% up from initial expectations, as it had forecast in November 2002. The preliminary results are due on 4 March 2003, with the finals expected on 27 March 2003. Chief Executive Officer Helmut Draxler said net profit in 2002 would exceed EUR 40 million , an 18% rise from initial estimates after a loss of EUR 856.4 million in 2001. For 2003 he forecast a four percent increase in sales with EBIT up 10% and net profit up 25%, as the company benefits from a reduced debt burden. “Because of the dynamic reduction in debts by 2003, results will improve and net profit will be disproportionally higher (next year),” Draxler said. Draxler“s latest forecasts improved on his last guidance in November 2002, when the group had said net profit would run 10% ahead of its own forecasts and EBIT would be 13 to 15% more than targeted. After running up billion-euro debts by the end of 2001 and reporting a negative EBIT of EUR 114.3 million , the firm took action to reduce losses, separating from its U.S. business and selling its engineering division.