Business
Q1 Trading Update, Disposal and Share Buyback
Q1 Trading Update, Disposal and Share Buyback.
About this update from Rhi Magnesita Nv
[{"type":"text","content":"\n \n \n \n RNS Number : 5905X\n RHI Magnesita N.V.\n 05 May 2021\n \n \n \n \n \n RHI Magnesita N.V.\n \n \n \n \n \n (\"RHI Magnesita\" the \"Company\" or the \"Group\")\n \n \n \n \n \n Q1 2021 TRADING UPDATE, \n \n \n DISPOSAL OF INTEREST IN MAGNIFIN\n \n \n AND \n \n \n SHARE BUYBACK\n \n \n \n \n \n · \n \n Full year guidance unchanged as recovery trends in end markets continue, with solid order book momentum\n \n \n \n · \n \n Strategic investments in cost reduction and sales strategies on track to deliver the targeted EBITA contribution of €140-160 million from 2022\n \n \n \n · \n \n Agreement to sell non-core stake in joint venture company, Magnifin, for €100 million\n \n \n \n · \n \n Buyback programme to continue, with up to a further €50 million approved \n \n \n \n RHI Magnesita, the leading global supplier of refractory products, systems and solutions, today provides an update on trading for the three months to 31 March 2021 ('Q1') and progress of its strategic cost reduction and sales initiatives.\n \n \n Q1 Trading\n \n \n Revenue momentum continued to improve through Q1 2021 in both the Steel and Industrial Divisions as end markets strengthened. The Cement and Lime business, in particular, experienced a solid Q1 maintenance season. The Group continues to see steady month-on-month improvement in refractory demand and in its order book for the remainder of 2021. Demand visibility is returning to more normal levels, with customers' order books now full until the third quarter of 2021.\n \n \n The Group has experienced challenges in rebuilding its supply chain during the quarter, ahead of rising customer demand. This has been aggravated by industry-wide delays in sea freight and higher sea freight costs. Together these have resulted in an increase in lead times to fulfil orders and additional costs being incurred in the quarter to ensure customer expectations are met. These supply chain challenges have started to ease in Q2.\n \n \n Raw materials prices held higher levels during the quarter compared to Q4 2020, though the benefit to pricing of the Group's products is expected to be realised largely in the second half of the year. \n \n \n The Group's strategic investments in its cost reduction and sales strategies are on track to deliver the guided €90 million EBITA contribution in 202...