Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
RHI Magnesita reports subdued Q1, but outlook unchanged
(Sharecast News) - Refractory products group RHI Magnesita reported subdued customer demand in the first quarter but said that the outlook for 2024 remains in line with expectations. The company, which produces refractory products for high-temperature industrial processes, said continuing weakness in key end markets of construction and transportation led to weaker sales volumes and lower pricing as expected, offset by the impact of M&A. However, EBITA margins were in line with full-year guidance at around 11%.
In response to cyclically weaker demand, RHI Magnesita said it continues to manage key operational and commercial disciplines closely, including pricing, costs, production planning, inventories and customer credit exposures.
"Low plant utilisation and consequent under-absorption of fixed costs create favourable conditions to increase output into a recovery, with significant operational gearing benefits to be realised once customer demand returns. The timing of such recovery remains uncertain and is not yet evident in customer behaviour."
Weaker volumes and pricing in the industrial segment, against strong comparatives last year, are expected to be offset by growth in steel production in markets (excluding China) in 2024.
The company, which in March announced the $430m acquisition of Resco Group, a US-based producer of alumina monolithics to grow its production footprint in North America, has now made 10 acquisitions since December 2021.
Chief executive Stefan Borgas said it was the company's strategic priority to "grow through consolidation in the fragmented global refractory industry".
"Our broad addressable market extends to all high temperature iron, steel and industrial processes and we have expanded our business via a counter-cyclical M&A programme in alumina-based refractories, industrial market segments and other product areas and geographies where we have previously been under-represented," he said.
The stock was more or less flat on Thursday morning at 3,617.75p.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.