8th Mar 2021 09:16
(Alliance News) - RHI Magnesita NV on Monday reported double-digit earnings decrease in 2020, but noted that it is "well-positioned" going forward.
The Vienna, Austria-headquartered supplier of refractory products said revenue was down 23% in 2020 to EUR2.26 billion. On a constant currency basis, revenue fell by 20%. Pretax profit plummeted to EUR42 million from EUR200 million a year earlier.
Despite that, RHI Magnesita declared a dividend of EUR1.50 for the year, up from EUR0.50 a share paid the year before. The company also returned EUR52 million to shareholders in 2020 through a share buy-back programme.
Going forward, the company said it continues to see steady, month-on-month improvement in demand in all its end markets and order book. Therefore, it expects overall recovery trends to continue in both its Steel and Industrial divisions during 2021, with earnings likely to be weighted towards the second half.
"2020 has been the most challenging year that our industry has experienced," noted Chief Executive Stefan Borgas. "During this challenging period, our strong financial position has enabled us to continue to invest in our strategic priorities. We have further reduced costs and optimised operations, supported by investments in digitalisation and automation."
Borgas added: "With our end-markets now showing signs of recovery, we are confident that the business is well-positioned to take advantage of new opportunities as conditions improve."
RHI Magnesita shares were trading 2.4% higher in London on Monday at 4,150.00 pence each.
By Evelina Grecenko; [email protected]
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