Mar. 8, 2011 - Following the decline in world steel output by 8% due to the crisis in the year 2009 (outside China -20%), the year 2010 was characterised by a worldwide recovery. World steel output rose to 1,4 billion tonnes in 2010, up roughly 15% on the reference year 2009, with a particularly good development in the regions that are especially important for RHI: in the EU27 (+24.6%), North America (+35.7%) and Asia excl. China (+17.3%).
Both the cement and the glass industry reported subdued investment activities, with the exception of the growth regions China and Brazil, where infrastructure projects drove new construction activities. A recovery became visible only in the fourth quarter. In the nonferrous metals segment, the high price levels of nickel, lead and zinc caused a revival of investment projects. At the end of the year, a major contract amounting to 47 million in the ferrochrome sector was concluded in the CIS, which will be delivered in 2012.
RHI's revenues were up 23.1% to 1,522.9 million in 2010 (previous year: 1,236.9 million); the operating result increased by 75.7% to 138.8 million (previous year: 79.0 million). Earnings before interest and taxes (EBIT) thus rose by 129.9% to 126.0 million (previous year: 54.8 million) and take into account restructuring measures and impairment losses for the shut-down of the plants in Chile and Canada as well as a raw material site in the EMEA region. The operating result margin, at 9.1% in 2010, significantly exceeded the prior-year figure of 6.4%, but fell short of the pre-crisis level of 10.4%.
The Steel Division benefited from the good development of the steel industry in the year 2010, increased revenues each quarter throughout the year and even surpassed the revenue level of 2008. Revenues amounted to 977.3 million (previous year: 703.6 million) and at 256.9 million in the fourth quarter exceeded revenues of the fourth quarter of 2009 by some 25%. The division's operating result was negatively affected by the soaring raw material prices, which can only be gradually passed to customers with a delay due to agreements.
Revenues of the Industrial Division, where business is strongly characterised by the investment cycle, roughly matched the level of 2009 in terms of. With revenues amounting to 517.8 million (previous year: 513.6 million), the operating result of 74.3 million significantly exceeded the prior-year figure of 64.6 million. In late 2010, the contract regarding the complete takeover of ZAO Podolsk Refractories was signed; the closing will take place in the second quarter of 2011.
Capacity utilisation at the Raw Materials Division was good throughout the year 2010; both internal and external revenues were significantly increased.
Overall, RHI expects an increase in revenues of approximately 5% for the year 2011 based on the generally positive economic forecasts. Sales growth will be driven by the Industrial Division, which received positive signals from all customer industries in the fourth quarter of 2010. In the highly competitive steel segment, the focus will lie on defending existing market shares due to necessary price increases in the developed markets. Therefore, the Steel Division's contribution to growth in revenues will largely stem from the planned price increases.
All of the data given for 2010 are preliminary figures; the final result as well as the consolidated statement of financial position 2010 will be published on 21 March 2011 following the approval of the consolidated financial statements by the Supervisory Board.
Both the cement and the glass industry reported subdued investment activities, with the exception of the growth regions China and Brazil, where infrastructure projects drove new construction activities. A recovery became visible only in the fourth quarter. In the nonferrous metals segment, the high price levels of nickel, lead and zinc caused a revival of investment projects. At the end of the year, a major contract amounting to 47 million in the ferrochrome sector was concluded in the CIS, which will be delivered in 2012.
RHI's revenues were up 23.1% to 1,522.9 million in 2010 (previous year: 1,236.9 million); the operating result increased by 75.7% to 138.8 million (previous year: 79.0 million). Earnings before interest and taxes (EBIT) thus rose by 129.9% to 126.0 million (previous year: 54.8 million) and take into account restructuring measures and impairment losses for the shut-down of the plants in Chile and Canada as well as a raw material site in the EMEA region. The operating result margin, at 9.1% in 2010, significantly exceeded the prior-year figure of 6.4%, but fell short of the pre-crisis level of 10.4%.
The Steel Division benefited from the good development of the steel industry in the year 2010, increased revenues each quarter throughout the year and even surpassed the revenue level of 2008. Revenues amounted to 977.3 million (previous year: 703.6 million) and at 256.9 million in the fourth quarter exceeded revenues of the fourth quarter of 2009 by some 25%. The division's operating result was negatively affected by the soaring raw material prices, which can only be gradually passed to customers with a delay due to agreements.
Revenues of the Industrial Division, where business is strongly characterised by the investment cycle, roughly matched the level of 2009 in terms of. With revenues amounting to 517.8 million (previous year: 513.6 million), the operating result of 74.3 million significantly exceeded the prior-year figure of 64.6 million. In late 2010, the contract regarding the complete takeover of ZAO Podolsk Refractories was signed; the closing will take place in the second quarter of 2011.
Capacity utilisation at the Raw Materials Division was good throughout the year 2010; both internal and external revenues were significantly increased.
Overall, RHI expects an increase in revenues of approximately 5% for the year 2011 based on the generally positive economic forecasts. Sales growth will be driven by the Industrial Division, which received positive signals from all customer industries in the fourth quarter of 2010. In the highly competitive steel segment, the focus will lie on defending existing market shares due to necessary price increases in the developed markets. Therefore, the Steel Division's contribution to growth in revenues will largely stem from the planned price increases.
All of the data given for 2010 are preliminary figures; the final result as well as the consolidated statement of financial position 2010 will be published on 21 March 2011 following the approval of the consolidated financial statements by the Supervisory Board.
