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RHI Magnesita NV - Vienna-based supplier of refractory products - Says its earnings before interest, tax, depreciation and amortisation are up 50% in the first quarter ended March 31, boosted by continued strong demand for steel and industrial products. However, revenue in the nine Commonwealth of Independent States countries ‘might be fully at risk’, following the Russian invasion of Ukraine. The firm generated about 3.5% of its 2021 revenue in those countries, it explains.
‘Contingency plans have been prepared and are being implemented as an insurance, for example preparing for a switch to alternative fuels at plants should they be impacted by disruption to European natural gas supplies,’ it adds. €6 million additional capital expenditure will be incurred in 2022 to prepare for the scenario, RHI Magnesita says.
At the start of the second quarter, demand in all key markets was strong. ‘Further cost inflation in energy, freight, labour and purchased raw materials is being passed on to customers in a timely fashion,’ firm adds. A €39 million acquisition of Turkey-based refractory manufacturer Sormas Refrakter still needs approval from the competition authority in Turkey and is expected to complete in the second half of 2022, company says.
Current stock price: 2,356.00 pence, up 5.1% on Thursday
12-month change: down 47%
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