RHI Magnesita: revenues for the first nine months in line with forecasts thanks to good mergers and acquisitions activity

Monday 11th November 2024 05:22 AM

(Alliance News) – RHI Magnesita NV said on Monday that the contribution from mergers and acquisitions offset lower-than-expected sales volumes.

The Vienna-based manufacturer of refractory products for processing steel, glass and non-ferrous metals said revenue for the nine months to September 30 was in line with the previous year.

RHI Magnesita said adjusted earnings before interest, taxes, depreciation and amortization in the third quarter were in line with levels recorded in the first and second quarters.

Last July, the company announced adjusted Ebita of 190 million euros for the first half of 2024, down 5.0% from 200 million euros the previous year.

RHI Magnesita expects adjusted Ebita for 2024 to be between €400 million and €410 million, similar to the €409 million it announced for 2023.

Longer term, the company said it remains well positioned for a recovery in customer production volumes.

Stefan Borgas, Chief Executive Officer, said: “RHI Magnesita has delivered another resilient performance in difficult market conditions, amid a global industrial recession now in its third year. A strong increase in profits is necessary for the fourth quarter to achieve Ebita targets This increase was expected, but it was repeatedly delayed due to very low customer demand The normal seasonal recovery in the cement sector and the timing of industrial project deliveries. keys, however, support a fourth quarter stronger than the first nine months of the year”.

He added: “In India, the medium-term demand outlook now looks a little weaker than expected six months ago. Outside of India, we do not see a catalyst for a near-term recovery in “Restructuring China’s heavy industry and construction sector will take time, while structural oversupply will likely continue to negatively impact global steel markets.”

RHI Magnesita shares were up 0.3% at 3,155.00 pence each on Monday morning in London.

By Tom Budszus, Alliance News Editor

Comments and questions to [email protected]