RHI Drops Most Since July After Outlook Worsens on Norway PlantJonathan Tirone
RHI AG fell the most in three months after the world’s biggest fireproofing-ceramics maker said technical problems at a new Norwegian plant will hurt full-year profitability.
The shares dropped as much as 6.5 percent, the biggest intraday decline since July 23. The stock was down 4.8 percent at 25.77 euros as of 11:33 a.m. in Vienna.
The full-year operating margin will “fall significantly short” of last year as low capacity use, currency effects and problems at the Norwegian fusion plant narrow profit margins, the company said today in a statement. The problems in Norway haven’t been resolved and will hurt the operating result by about 10 million euros this quarter, it said. Full-year sales will be “slightly below” last year’s level of about 1.84 billion euros ($2.48 billion).
Third-quarter net income at the Vienna, Austria-based company, which makes ceramics that line industrial furnaces and can withstand heat of 1,800 degrees Celsius (3,270 degrees Fahrenheit), dropped 25 percent to 17.4 million euros. Sales retreated 7.1 percent to 427 million euros in the three months ended Sept. 30.