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RHI´s Results of the 1st Quarter 2014

Revenues in the Steel Division decreased by 7,9 % compared with the 4th quarter of 2013 due to the difficult market environment in South America, political tensions in Ukraine and Turkey and the New Year’s celebrations in China. However, the level of incoming orders rose in the double-digit percentage range compared with the end of the year 2013, which indicates an increase in revenues in the coming quarters. The drop in revenues in the Industrial Division by 22,1 % compared with the preceding quarter results in particular from weaker new construction activities. In addition, several major projects were delivered in the fourth quarter of 2013. Revenues should, however, also recover significantly in this division in the course of the financial year. The operating result amounted to EUR 34,1 million in the past quarter. Compared with the operating result of the 4th quarter of 2013, which was characterized by several one-off effects, this corresponds to an increase by 89,4 %. The operating result margin rose from 3,9 % to 8,5 %. EBIT amounted to EUR 33,6 million in the 1st quarter of 2014 and includes restructuring costs of EUR 0,5 million resulting from the closure of the Duisburg plant in Germany. Here, higher expenses for the social plan led to additions to the relevant provisions. The EBIT margin amounted to 8,4 % in the past quarter. The tax rate was 31,3 %. Equity totaled EUR 497,5 million at 31 March 2014 compared with EUR 485,5 million at 31 December 2013. The equity ratio increased slightly from 28,2 % at the end of the financial year 2013 to 28,3 % at 31 March 2014. Net debt decreased from EUR 422,9 million to EUR 408,3 million. As a result, the gearing ratio declined from 87,1 % to 82,1 %. Net cash flow from operating activities amounted quarter, and net cash flow from investing activities to EUR 5,3 million. Provided that the macroeconomic environment and exchange rates remain stable, RHI expects significantly higher revenues in the second quarter of 2014 than in the first quarter of 2014 driven by strong incoming orders. The operating result margin is expected to rise to roughly 9 %.  For the full year 2014, RHI still expects revenues to grow by roughly 3 % compared with the year 2013. The operating result margin should range between 8 – 9 % including the negative effects from Norway.


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