RHI Magnesita reiterates FY guidance amid ongoing 'solid' order book growth

Refractory products supplier RHI Magnesita kept full-year guidance unchanged on Wednesday, with recovery trends in end markets continuing and ongoing "solid" order book momentum.

RHI Magnesita said revenue momentum in both its steel and industrial divisions had continued to improve in the three months ended 31 March as end markets strengthened, while its cement and lime business, in particular, experienced a "solid" first-quarter maintenance season.

The FTSE 250-listed group also noted it had continued to see "steady" month-on-month improvement in refractory demand and in its order book for the remainder of 2021, leading demand visibility to return to "more normal levels".

However, RHI did note that it had experienced "challenges" in rebuilding its supply chain during the quarter, ahead of rising customer demand, something that was also aggravated by industry-wide delays in sea freight and higher sea freight costs.

"Together these have resulted in an increase in lead times to fulfill orders and additional costs being incurred in the quarter to ensure customer expectations are met," said THI, which noted that supply chain challenges had started to ease early in the second quarter.

Elsewhere, RHI said it had signed a sale and purchase agreement to sell its 50% shareholding in Magnifin Magnesiaprodukte, an Austrian producer of high-grade magnesium hydroxide for applications in flame retardancy, for a cash consideration of €100.0m.

As of 1020 BST, RHI shares were up 2.46% at 4,576.0p.