Press Release

RHI Magnesita: 2019 Full Year Results

01. April 2020

Strong strategic progress and resilient performance in difficult market conditions:

RHI Magnesita today announces its 2019 full year results.


  • Resilient performance in difficult markets
    • Steel Division revenue down 10.4% at constant currency reflecting weak end markets and customer destocking
    • Industrial Division revenue up 3.6% at constant currency with strong performance through the year
  • Significant fall in raw material pricing, back to long-term average levels
  • Robust margin performance
    • 14.0% adjusted EBITA margin despite lower contribution from raw materials in H2
  • Solid cash flow generation
    • FY19 Operating free cash flow of €359 million
  • Integration of RHI and Magnesita complete in 2019
    • Operating systems in place and single Group culture fully embedded
    • €90 million of synergies extracted
    • Well executed price rise programme
    • Sustained growth in target markets – revenue growth on a reported basis in China up 10.9%; India up 2.7%
    • Continued development of solutions model and digital offering
    • Established Production Optimisation Plan and Sales Strategies to drive next phase of margin improvement – on track to deliver EBITA benefit of €70-€80 million by 2022
  • Strong balance sheet, supporting potential for further investment and M&A
    • Net debt reduced by 0.1x (1.2x net debt to EBITDA)
    • Strong liquidity position with cash and available facilities of €1.1 billion
  • No final dividend for 2019, to preserve financial flexibility


Commenting on the results, Chief Executive Officer, Stefan Borgas said:

“In 2019, RHI Magnesita has further demonstrated strong progress in executing our strategy, resolving previously identified operational issues and implementing the initiatives that will underpin our long-term growth. We have delivered a resilient financial performance in the year, despite difficult market conditions and lower raw material prices, particularly in our Steel Division in the second half.

“Looking forwards, we will benefit from the steps we have taken to strengthen the business, particularly from the Production Optimisation Plan. However, the difficult market environment in the second half of 2019 has continued in the first quarter of 2020. Whilst COVID-19 has not had a material financial impact on the business to date, we have seen a recent slowdown in customer activity, particularly in our Steel Division, and the future demand environment is very uncertain. We have undertaken extensive scenario testing, factoring in a range of potential outcomes, which indicate that the Company has sufficient liquidity to withstand an extended period of uncertainty.”

“Longer term we see clear opportunities to further progress our refractory margin, whilst also continuing to benefit financially and strategically from our backward integration. The business benefits from a strong financial position, with low leverage and significant liquidity, and is well positioned to take advantage of growth opportunities when markets improve.”


Financial results




(€m unless stated otherwise) 


Adjusted at constant currency






Adjusted EBITA




Adjusted EBITA margin



(30 bps)

Adjusted EPS




Net debt2




Net debt to adjusted EBITDA2









(€m unless stated otherwise) 









Profit before tax







1 Adjusted figures are alternative performance measures “APM” excluding impairments, amortisation of acquisition intangibles and exceptional items to enable an understanding of the underlying performance of the business. Full details are shown in the APM section.

2 Following the introduction of IFRS 16 Leases, 2019 net debt includes the impact of IFRS 16 of €62 million. 2018 adjusted net debt figures are shown including the impact of IRFS 16 (€58 million) to facilitate comparison between reporting periods.

COVID-19 impact

The global impact of the COVID-19 virus is a fast moving and uncertain situation. RHI Magnesita´s primary focus is the health and safety of the employees around the world. The company has continued to operate its production capabilities and supply chain, enabling it to deliver for customers as normal. In China the plants have remained open through the crisis, with employees safe. Across the rest of the world, plants are also open and are operating with strict restrictions such as pre-work temperature checks and no travel between plants. All corporate offices are closed with employees working from home. Whilst the company has seen no material financial effects on the business to date, the impact of COVID-19 on demand from its customers is very uncertain. RHI Magnesita is engaging customers closely to understand their current production rates, stock levels and short-term requirements.


About RHI Magnesita

RHI Magnesita is the leading global supplier of high-grade refractory products, systems and solutions which are indispensable for industrial high-temperature processes exceeding 1,200°C in a wide range of industries, including steel, cement, non-ferrous metals and glass. With a vertically integrated value chain, from raw materials to refractory products and full performance-based solutions, RHI Magnesita serves customers in nearly all countries around the world. The Company has a high level of geographic diversification with more than 13,650 employees in 32 main production sites and more than 70 sales offices around the world. RHI Magnesita intends to leverage its global leadership in terms of revenue, scale, product portfolio and diversified geographic presence to target strategically those countries and regions benefitting from more dynamic economic growth prospects. 

Its shares have a premium listing on the London Stock Exchange (symbol: RHIM) and are a constituent of the FTSE 250 index. For more information please visit:

Annual Report 2019

The Company’s 2019 Full Year Results has been published and is available to view. In compliance with Listing Rule 9.6.1, a copy will also be submitted to the National Storage Mechanism and will shortly be available for inspection at


Photo CEO Stefan Borgas

Photo RHI Magnesita Headquarters Vienna

Further press photos

For further enquiries, please contact:

Guy Marks
Head of Investor Relations, RHI Magnesita
+44 7932 013 357

Lisa Fuchs
Head of Corporate Communications, RHI Magnesita
+43 6991 870 6198