EANS-Adhoc
RHI AG / Provision resulting from the valuation of a long-term energy supply contract has a negative effect on earnings in 2015 and leads to improvements in the following years - dividend remains unchanged
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ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
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ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
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annual result
12.02.2016
Current incidents at the site in Porsgrunn, Norway, are forcing the
Management to make a more conservative estimate regarding future
production volumes. In addition, the grade concept for finished
products provides for an increased use of external raw materials as a
result of the significant drop in raw material prices. This has the
following effects on the financial statements of 2015: as the
so-called "own-use exemption" no longer applies, the long-term energy
supply contract concluded in 2011 has to be qualified as a financial
instrument in accordance with IAS 39. The valuation of the complete
term of the contract until the end of the year 2023 at market price
level leads to a non-cash provision of roughly EUR 58 million at the
end of the year 2015. In the following years, this provision will be
reversed and will lead to the corresponding improvements in earnings.
Business Development The RHI Group's revenue amounted to EUR 1,752.5
million in the past financial year, after EUR 1,721.2 million in the
year 2014. The decline in revenue in the Steel Division in Europe,
the Middle East and North Africa was nearly compensated by a good
business development in India and South America as well as positive
currency translation effects resulting from the devaluation of the
euro against the US dollar. In the Industrial Division, the
year-on-year increase in revenue by 8.5% is, among other things,
attributable to higher project deliveries in the glass and
environment, energy, chemicals business units. At the same time, the
cement/lime business unit benefited from a positive development of
the construction sector in North America.
The operating EBIT decreased from EUR 141.9 million in the previous
year to EUR 124.1 million in the financial year 2015. While the
operating EBIT of the Steel Division declined due to a weaker margin
development in Europe and the Middle East as well as negative product
mix effects resulting from decreasing volumes in the electric arc
furnace segment, the Industrial Division benefited from better
utilization of fixed costs following an increase in revenue, improved
margins in the glass business unit and several major repairs carried
out in the nonferrous metals business unit. The Raw Materials
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