5th Nov 2018 09:06
LONDON (Alliance News) - FTSE 250-listed RHI Magnesita NV on Monday reported good trading in the third quarter of 2018, driven by solid markets, stable raw material prices, and positive customer response to its portfolio of products.
The refractory products supplier said it saw an improved earnings before interest, taxes deprecation and amortisation margin profile in the three months to the end of September.
Steel production growth remained robust globally, RHI Magnesita said, meaning its division serving that industry performed well in the third quarter, with a strong performance in North America but a slowdown in Europe.
In Industrials, the Nonferrous segment performed well in the quarter, RHI Magnesita said, with further projects set to be delivered in the fourth quarter. The Cement-Lime division has been held back by reduced cement production in the Chinese market due to government controls, while Process Industries remained flat, the company said.
In addition, RHI Magnesita said its previously announced integrated tender offer for the remaining shares in Brazilian subsidiary Magnesita Refratarios SA it does not already own is expected to be launched and completed within the remainder of 2018.
Also, the group remains on-track with its integration plans to meet its synergy targets of EUR60 million in 2018 and EUR110 million in 2020.
It said it continues to consider a potential transaction involving Kumas Manyezit Sanayi AS and will update the market on this "in due course". In June, RHI Magnesita had confirmed press reports of talks with the Turkish mining company, saying it "regularly seeks to evaluate opportunities that may arise to participate in the ongoing consolidation of the refractory industry".
"The strong trading performance reported to date in 2018 continues, supported by solid demand from the group's end markets, the benefits of raw material integration and the realisation of synergies. Therefore, save for the PPA-related adjustments, management expectations for full year 2018 operating results remain unchanged," the group said in a statement.
Shares in RHI Magnesita were down 2.1% at 3,970.00 pence on Monday.
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