Business
1st Quarter Results
1st Quarter Results.
About this update from Rhi Magnesita Nv
[{"type":"text","content":"\n \nRNS Number : 2614N RHI Magnesita N.V. 08 May 2018 \n\nRHI Magnesita N.V.\n(\"RHI Magnesita\" or the \"Company\" or \"Group\")\n \nTRADING UPDATE\n \n8 May 2018, London. RHI Magnesita N.V. (LSE: RHIM), the global leading supplier of refractory products, systems and services, today announces a trading update for the three months to March 2018.\n \nOVERVIEW\n \nRHI Magnesita's first quarter trading performance continues to reflect the positive trends seen in the H217 and the benefits of our high level of vertical integration. Price increases promoted strong development in revenues, more than offsetting higher raw material input costs. Revenue for the three months to March 2018 was €745m, 23% higher than the comparative period on a constant currency basis (14% higher on a reported basis). Operating EBITA increased by almost 70% on a constant currency basis1, to €113m, with a 15.2% operating EBITA margin. \n \nSTEEL DIVISION\n \nSteel production growth year-over-year was robust in South America, MEA and Asia Pacific and slightly positive in North America and Europe. RHI Magnesita's steel division has outperformed these trends so far this year, with the exception of South America. It is too early to gauge the effects from the imposition of trade tariffs, yet the Group believes its diversified production base (in 16 countries across 4 continents) and client base (10,000 plants in more than 180 countries) will cushion any significant impact from these developments, as long as industrial output on a global basis is unaffected.\n \nINDUSTRIAL DIVISION\n \nIn the Industrial division, the Nonferrous metals segment performs stronger than last year with high margin order intakes so far. In EEC (Environment, Energy & Chemicals) we see increasing demand in China and CIS, with the installation business picking up. The Cement/Lime segment is flat, as result of still low capacity utilization in China and Brazil and some market share losses due to pricing. The Minerals segment has benefitted from raw material price increases and supply shortage caused by the stricter environmental enforcement in China.\n \nINTEGRATION AND SYNERGIES\nWe continue to successfully implement our planned integration actions and also continue to remain very confident in achieving our synergy target of €70m ...