RHI“s US refractories division disappoints

Austrian fireproof goods maker RHI AG posted a decline in first-half sales and operating profit in mid-August this year.
RHI“s first-half operating profit fell to Euro 25.2 million from Euro 41.1 mi…

Austrian fireproof goods maker RHI AG posted a decline in first-half sales and operating profit in mid-August this year. RHI“s first-half operating profit fell to Euro 25.2 million from Euro 41.1 million, while earnings before interest, tax and amortization decreased to Euro 78.4 million compared with Euro 97.0 million in the same period of 2000. The company said sales declined by 12% to Euro 952.1 million compared with Euro 1.08 billion in the previous year, primarily due to the deconsolidation of the insulating division and unsatisfactory business development in the US. Furthermore, the refractories business hasn“t yet met expectations due to the weak industrial cycle in the US. Forecasting sales volumes in the refractories division in the US remains difficult, the company added. Nevertheless it expects satisfactory full-year sales figures in the refractories division for Europe, Asia and South America. The company said it has stepped up efforts to reduce costs to target a turnaround in the second half of 2001.