Reuters reported that Austrian fireproof materials maker RHI expects its fourth quarter results to weaken somewhat from the really fantastic levels it generated in the first three quarters as a steel sector slump hits home.
Chief Executive Franz Struzl said that its 2012 operating margin would still rise to around 9.5% and reiterated the group expected stable sales and a higher operating margin in 2013 as a steel upturn sets in from the middle of the second quarter.
RHI had this month forecast rising operating profit margins this year and next when reporting third quarter operating profit that jumped 44.4% to EUR 56.6 million.
RHI generates nearly two-thirds of its sales from the steel sector, a proportion Struzl said would decline in years ahead.
He stuck to the group's mid term goal of boosting operating margins to at least 12 percent, and said RHI also aimed to increase its dividend payout ratio from last year's 25%
Mr Struzl said RHI would need acquisitions to hit its target of EUR 3 billion (USD 3.9 billion) in annual sales but said while it was in talks with potential partners in India nothing was imminent there despite media reports to the contrary.
RHI was keen to produce in the United States and was evaluating its options there, including potential "brownfield" projects. It expected to decide next year on its plans, which could need investments of around EUR 50 million.
