30th Jul 2025 12:31
(Alliance News) - RHI Magnesita NV on Wednesday said a "highly competitive" pricing environment is anticipated to continue as it reported a profit dive amid lower revenue.
The Vienna-based refractory products maker said market conditions "remain challenging, with end market demand weakness expected to continue" into the second half.
RHI said steel demand is "low but stable" with regional differentiation. It noted that the growth outlook in India and North America contrasted with Europe, where steel output is in decline.
Revenue in the first half of the year fell 3.0% to EUR1.68 billion from EUR1.73 billion, while pretax profit plunged all the way to EUR14 million from EUR143 million.
It maintained its interim dividend at 60 euro cents per share, however.
Looking ahead, RHI said it expects a "highly competitive pricing environment" to continue, amid pressures from China exporters and local players fighting for market share in India.
To take into account its weaker-than-expected half-year performance, RHI lowered its outlook for adjusted earnings before interest, tax and amortisation for 2025 to between EUR370 million and EUR390 million, down at least 3.2% from EUR403 million in 2024. When it had reported its 2024 results back in February, RHI had guided for 2025 adjusted Ebita "modestly" above 2024.
RHI shares were down 9.9% to 2,640.44 pence early Wednesday afternoon in London.
By Tom Budszus, Alliance News slot editor
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