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RHI Result Influenced by One-off Effects in Q2

While revenues of the Industrial Division decreased by 7,5 % due to the seasonally weak cement business, the Steel Division recorded an 11,6 % increase due to the integration of the Indian company Orient Refractories Ltd., which was acquired at the end of April, into the reporting of the RHI Group. Revenues in the first half of 2013 were down 4,6 % on the first half of 2012 and amounted to EUR 870,7 million. Although sales volume of the Steel Division declined by 7,7 % in a challenging market environment, the decrease in revenues was more moderate, at 5,7 %, because of price adjustments and an improved product mix. Revenues in the Industrial Division dropped by 1,5 % due to weaker project business in the business unit Environment, Energy, Chemicals. The 6,9 % decline in the operating result to EUR 76,6 million is attributable to a weaker performance of the Raw Materials Division and the one-off expenses recorded in the second quarter. The operating result margin amounted to 8,8 % in the first half of 2013, after 9 % in the same period of the previous year. RHI still expects revenues at the level of the previous year for the full year 2013. However, realizing the operating result margin of the year 2012 appears to be challenging in view of the one-off expenses in the second quarter as well as the negative effects from Norway, which are expected for the second half of the year. (8/2013)

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