Nov. 4, 2010 - RHI forecast flat fourth-quarter earnings compared to the previous quarter after the Austrian fireproof materials maker reported a jump in third-quarter pretax profit that missed expectations.
The maker of special bricks and mortar used in the furnaces and kilns of steel, glass and cement makers said it expected a slight increase in fourth-quarter turnover and full-year revenue of about 1.5 billion euros ($2.1 billion).
The October-December result "will be at the level of the third quarter due to positive mixed effects from the growth in the industrial business and price effects from raw material price increases, which have not yet been fully passed on," it said.
Third-quarter earnings before interest and tax (EBIT) more than doubled to 26.4 million, thanks to revenue growth in its steel division, but fell short of the average estimate of 30.7 million in a Reuters poll of analysts.
The group, which competes with Britain's Cookson and Brazil's Magnesita, said it had taken steps in the quarter to strengthen its position in Brazil, Russia and China while deciding to close plants in Chile and Canada.
RHI's steel division had a 42 percent increase in revenue compared with the same 2009 quarter, even though global steel output declined after five quarters of growth, it said.
