Business
Q1 2020 Trading Update
Q1 2020 Trading Update.
About this update from Rhi Magnesita Nv
[{"type":"text","content":"\n \n \n RNS Number : 8873L\n RHI Magnesita N.V.\n 05 May 2020\n \n \n \n \n RHI Magnesita N.V.\n \n \n \n \n \n (\"RHI Magnesita\" or the \"Company\" or \"Group\")\n \n \n \n \n \n \n \n \n Q1 2020 TRADING UPDATE\n \n \n \n \n \n RHI Magnesita N.V. (LSE: RHIM), the leading global supplier of refractory products, systems and solutions, today provides an update on measures being taken in response to the COVID-19 pandemic and trading for the three months to 31 March 2020.\n \n \n Q1 trading conditions similar to H2 2019\n \n \n As outlined in the Company's 2019 full year results on 1 April 2020, the difficult market environment of the second half of 2019 continued into the first quarter of 2020, with limited impact from COVID-19. Trading activity in the Steel Division remained weak in Europe and South America, largely offset by a robust performance in North America. The Industrial Division continued to perform well, particularly in Cement. Overall, demand levels were similar to the final quarter of 2019 with EBITA slightly ahead, in line with management expectations. Raw material prices have fallen further in 2020, given the reduction in overall demand and uninterrupted supply from China, which has had a consequential impact on the pricing of some of the Group's products.\n \n \n Increasingly challenging environment in Q2 2020\n \n \n The trading environment has become increasingly challenging in Q2 as a result of COVID-19, with a significant slowdown in customer activity and fall in order book levels, as expected. In the Steel Division, customer production has reduced in response to the economic slowdown caused by the COVID-19 crisis. To date, the Industrial Division has remained more resilient, particularly in areas where maintenance work has been accelerated during shutdowns, although there have been some project postponements. \n \n \n Primary focus on health and safety, as well as supporting our customers' operations\n \n \n In response to the challenges of COVID-19, the business continues to focus on the health and safety of its employees, supporting our customers' operations, cash preservation and cost reduction measures.\n \n \n In China, the Group's plants have remained open through the crisis. Our production also remains open in Europe and the Americas, but production slow-down will be...