Refractory manufacturer RHI Group increased revenues by 7.0% in Q3 2012 compared to the same quarter of 2011. Revenues amounted to €459.9M.

However, revenues in the Steel Division dropped 3.7% in a market environment still characterised by uncertainty. Weaker demand in Europe during the summer months resulted in Steel Division revenues falling to € 272M in Q3, significantly short of the revenues in Q2 2012 at €296.8M and below revenues in Q3 2011 of € 282.5M.

Operating result dropped from €21.6M in Q2 2012 to € 16.5M in Q3 2012 which was also lower than in the Q3 2011 period of € 20.2M. The operating result margin, at 6.1%, was below the 7.3% of the previous quarter and also lower than in the prior-year reference period.

None-the-less the Steel Division remains the largest contributor to revenues contributing 63% of income in H1 2012 and 42% of operating profit but its 6% results margin was below the 11% achieved by the Industrial and the Raw Materials Divisions. EBIT in the Steel Division amounted to €30.1M for the half year or 38.7% of Company profit.

Although the economic environment is weakening, RHI expects a slightly higher level of revenues and a higher EBIT margin in FY2012 than in the previous financial year. Despite indications that the economy is slowing down, RHI expects revenues for FY2013 to reach a similar level as in 2012. The EBIT margin should continue to improve further due to a higher level of backwards integration and consistent cost management.

The full report for Q3 2012 is available at