November 13, 2017 / 7:23 AM / a year ago

RHI Magnesita's core profit up 24 percent helped by recovery in steel

FILE PHOTO - The logo of Austrian specialised fireproof materials maker RHI is pictured behind a traffic light at an office park building where its headquarters are located in Vienna, Austria, October 6, 2016. REUTERS/Heinz-Peter Bader

VIENNA (Reuters) - Newly merged fireproof materials maker RHI Magnesita (RHIM.L) reported a pro-forma 23.7 percent increase in its nine-month core profit, helped by a recovery in global steel production.

RHI Magnesita, which began trading on the London Stock Exchange in late October, was formed in a $500 million deal involving RHI’s takeover of its Brazilian rival. The move helped consolidate a fragmented 20 billion euro (17.76 billion pounds) industry.

Earnings before interest, tax and amortisation (EBITA) reached 224.6 million euros, the group said on Monday.

Pro-forma revenue rose 9.3 percent to 2.05 billion euros in the nine months to September 30.

Full-year revenue is expected to grow “at high single digits, comfortably above volume growth seen in our customers’ industries”, the group said.

RHI Magnesita, which plans to introduce new products for European and U.S. markets and restructure its China operations. It expects 40 million euros in proceeds from the sale of several European operations by year-end.

Reporting by Kirsti Knolle; editing by Shadia Nasralla and Jason Neely

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