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RHI Magnesita NV on Thursday reported lower refractory sales volumes in the first five months of 2023 due to weaker demand. The Vienna-based supplier of refractory products said volumes for the five months ended May 31 were 7% lower than the previous year. The company said this was due to steel, cement and glass demand outside of India remaining soft due to a slowdown in construction activity, and some glass project postponements becoming evident. RHI Magnesita said its refractory earnings before interest, tax, and amortisation were better than expected, due to cost deflation in April and May, and a reduction in the cost of freight and purchased raw material. Overall, the adjusted Ebita for the five months rose 12% to €174 million, from €155 million at the same point last year, and the adjusted Ebita margin for the period was 12.1%, up from 11.6% last year. The company said that it expected a modest outperformance of its earlier 2023 Ebita and Ebita margin guidance. It had previously expected an Ebita margin of around 10% for 2023, weakening from 11.6% in 2022. ‘The outlook for the group’s key end markets and consequently customer volumes remains uncertain with the order book currently suggesting only a moderate volume increase in [the second half of 2023], if at all, resulting in ongoing under-absorption of fixed costs,’ RHI Magnesita explained. RHI Magnesita said its acquisition of Seven Refractories for €95 million is expected to be completed in the second half of 2023. Seven Refractories is a Divacha, Slovenia-based company focused on the clay building material and refractories manufacturing sector. RHI Magnesita shares were trading up 0.8% at 2,600.00 pence in London on Thursday morning. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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