Reuters: Hot Stocks: UPDATE 1-RHI says Norway problems will hurt full-year profit

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UPDATE 1-RHI says Norway problems will hurt full-year profit Jul 22nd 2013, 16:11 Mon Jul 22, 2013 12:11pm EDT * Norway plant technical problem still to be fixed * Negative currency effects in single-digit millions of euros * Shares fall 4 percent (Adds details on exchange rates, market environment, shares) VIENNA, July 22 (Reuters) - Austrian fireproof materials maker RHI will miss its full-year profit target because of technical problems at a new plant in Norway, it said on Monday, sending its shares tumbling. The company said the problems would affect its 2013 profit by an amount in the high single-digit millions of euros and matching its 2012 operating margin would now be "challenging". "Realising the operating result margin of the year 2012 appears to be challenging in view of the new developments, negative foreign currency effects in the second quarter and the persisting difficult market conditions," it said. A spokeswoman said the problem was with the transportation of a raw material, causter, to a smelter where it was to be refined, and it was as yet unclear whether the conveyor belt or the raw material itself was to blame. She added that the negative currency effects for the first half were in the single-digit million-euro range. RHI shares dropped 4 percent after the statement, which came just before market close in Vienna, and closed at 24.78 euros. The benchmark ATX closed down 0.1 percent. RHI's main customers are steel producers, which are suffering from slow or negative economic growth in key markets and excess capacity. RHI added that it still expected stable revenues this year and that its margin before interest and tax would significantly exceed last year's thanks to a $40 million payment from a settlement of asbestos claims in the United States. (Reporting by Georgina Prodhan; Editing by David Cowell) Link this Share this Digg this Email Reprints

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