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RHI Magnesita reports positive first-quarter trading
RHI Magnesita reported positive trading in the first quarter as rising prices more than made up for higher raw materials costs for the industrial products supplier.
Revenue for the three months to the end of March rose 23% to 745m (£655m) from a year earlier on a constant currency basis. Including currency movements revenue rose 14%.
Operating earnings before interest, tax and amortisation rose almost 70% to 113m at constant currency, the company said in a trading update.
The company said: "RHI 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."
RHI Magnesita said it expected 2018 to be very positive with higher prices, merger synergies and efficiencies making up for adverse currency movements.
The company was formed in 2017 when RHI bought Brazil's Magnesita. The combined group switched its listing from Vienna to London and joined the FTSE 250 index in November. It supplies bricks, lining mixes, nozzles, plugs and other products for use in high-temperature industrial processes such as steel making.
RHI Magnesita said it gained from strong steel production and a good performance from nonferrous metals in its industrial division. Revenue growth in the rest of the year will be lower than in the first quarter, it said.
The company's shares rose 6.2% to 4,832p at 10:40 BST.