RHI Magnesita NV on Monday said that the contribution from mergers & acquisitions offset sales volumes that were lower than expected.

The Vienna-headquartered manufacturer of refractory products for the processing of steel, glass, and non-ferrous metals said revenue in the nine months to September 30 was in line with a year ago.

RHI Magnesita said adjusted earnings before interest, tax and amortisation in the third quarter was in line with the levels reported in the first and second quarter.

Back in July, the firm had reported adjusted Ebita of €190 million for the first half of 2024, down 5.0% from €200 million a year ago.

RHI Magnesita expects 2024 adjusted Ebita between €400 million and €410 million, similar to €409 million it had reported for 2023.

Looking further ahead, the company said it remained well positioned for a recovery in customer production volumes.

Chief Executive Officer Stefan Borgas said: ‘RHI Magnesita has delivered another resilient performance in difficult market conditions in the midst of a global industrial recession, now in its third year. A strong step-up in earnings is required in the fourth quarter to achieve Ebita guidance. Such step-up was expected earlier but has repeatedly been delayed to due to very weak customer demand. The normal seasonal upturn in cement and the timing of key industrial project deliveries however support a stronger Q4 compared to the first nine months of the year.’

He added: ‘In India, mid-term demand outlook looks now a notch softer than expected six months ago. Outside of India, we are not seeing any catalyst for a near-term recovery in customer demand. The restructuring of heavy industry and the construction sector inside China will take time, meanwhile structural oversupply is likely to continue to impact global steel markets negatively.’

RHI Magnesita shares were 0.3% higher at 3,155.00 pence each on Monday morning in London.

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