RHI Magnesita to book €150m charge after asset review
Source - SMW
Refractory products supplier RHI Magnesita said it had seen a 'good' performance in the third quarter, reflecting a continuation of positive trends experienced in the first half.
However, the company also said it expected to book total depreciation of around €125m and amortisation of €25m in the financial year, having completed a purchase price allocation process that reviewed the value of its assets.
Including the full impact of the adjustments, first-half adjusted Ebita was cut to €209m, implying an adjusted Ebita margin of 13.8%. Previously, the company had reported first-half Ebitda of €209m with a 14.5% margin.
'Following significant price rises in the second half of 2017, raw material prices have continued to remain stable in the third quarter,' RHI Magnesita said.
'Government controls in China have led to a significant reduction in raw material output, which is expected to continue in the longer term.'
'Overall, the group's integrated model continues to derive the benefit from this structurally changed environment.'
'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.'