5th Aug 2020 11:39
(Alliance News) - RHI Magnesita NV on Wednesday said profit for the first half of 2020 plummeted as the Covid-19 pandemic severely hurt its steel and industrial divisions.
Shares in the FTSE 250-listed refractory products manufacturer were trading 1.2% lower at 2,526.00 pence each on Wednesday morning in London.
RHI Magnesita said pretax profit for the six months ended June 30 was EUR70 million, a 58% reduction from EUR165 million recorded a year prior. This was as revenue fell 24% year-on-year to EUR1.17 billion from EUR1.54 billion.
The pandemic severely hurt customer demand, resulting in a 22% decrease in revenue for the steel division and a 23% fall in revenue for the industrial division.
The Vienna-based company said it will not pay an interim due to economic uncertainty, particularly in respect of further virus outbreaks and any resulting economic weakness. An interim dividend of 50 euro cents was paid for the first half of 2019.
Looking ahead, Chief Executive Stefan Borgas said: "Activity levels are likely to remain subdued in the third quarter, with limited visibility into the fourth quarter. The long-term economic impact of Covid-19 remains uncertain. However, the business is taking appropriate actions to ensure it is able to manage effectively through an extended period of subdued demand. Our strategy remains on track and we have extended a number of our key initiatives to further improve, for the longer term, our overall cost effectiveness."
As at the end of June, RHI Magnesita had cash of EUR532.5 million.
By Ife Taiwo; [email protected]
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