RHI AG: Results 2015
The decline in revenue in the Steel Division in Europe, the Middle East and North Africa was nearly compensated by a good business development in India and South America as well as positive currency translation effects resulting from the devaluation of the EUR against the USD. In the Industrial Division, the year-on-year increase in revenue by 8,5 % is, among other things, attributable to higher project deliveries in the glass and environment, energy, chemicals business units. At the same time, the cement/lime business unit benefited from a positive development of the construction sector in North America. The operating EBIT decreased from EUR 141,9 million in the previous year to EUR 124,1 million in the financial year 2015. While the operating EBIT of the Steel Division declined due to a weaker margin development in Europe and the Middle East as well as negative product mix effects resulting from decreasing volumes in the electric arc furnace segment, the Industrial Division benefited from better utilization of fixed costs following an increase in revenue, improved margins in the glass business unit and several major repairs carried out in the nonferrous metals business unit. The Raw Materials Division’s lower contribution to earnings is attributable to weaker capacity utilization at the raw material plants resulting from declining volumes in the electric arc furnace segment. In addition, the operating EBIT was affected by negative currency translation effects of EUR 8,9 million from the measurement of balance sheet items, which are recognized under other expenses.
The EBIT amounted to EUR 37,5 million in the past financial year and includes a full write-down of the plant in Porsgrunn/NO, amounting to roughly EUR 23 million and the plant in Falconer/US, amounting to roughly EUR 8 million as well as negative effects on earnings of roughly EUR 58 million related to the change in valuation of a long-term energy supply contract concluded in the year 2011. In addition, a provision totaling roughly EUR 3 million was formed for the closure of the plant in Clydebank/GB. This is contrasted by positive effects of roughly EUR 6 million from the reversal of provisions after the sale of the premises at the site in Duisburg/DE, as well as lower closure costs at the Kretz site in Germany. Profit after income tax thus amounted to EUR 17,6 million in the financial year 2015 after EUR 52,5 million in the previous year. Earnings per share declined from EUR 1,28 to EUR 0,40.