LONDON (ShareCast) - (Sharecast News) - Refractory products supplier RHI Magnesita said on Wednesday that it was on track to achieve its 2021 guidance of €310.0m in adjusted underlying earnings despite witnessing a modest contraction in the first half, with earnings expected to be weighted towards the second half.
Over the six months ended 30 June, RHI Magnesita saw revenues increase 2.5% to €1.2m but adjusted underlying earnings slipped 4.0% to €128.0m as a result of a 70 basis point contraction of its adjusted EBITDA margin to 10.7%.

Adjusted earnings per share grew 16% to €2.05.

The FTSE 250-listed firm added that it was not only on track to deliver on its full-year 2021 underlying earnings guidance but that its strategic initiatives looked set to provide it with €140.0m-160.0m of run-rate EBITDA contributions from 2022.

Chief executive Stefan Borgas said: "RHI Magnesita has successfully navigated significant challenges in the first half of the year caused by a sharp rebound in customer demand against a background of delays and cost increases in the global supply chain.

"We have re-established our inventory levels and are now able to benefit from stronger market conditions and price increases contracted for the second half of the year. We are continuing to progress our cost-saving initiatives and are also seeing real benefits from our sales strategies."

As of 0900 BST, RHI Magnesita shares were down 5.40% at 4,026.0p.

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