April 26, 2005
12:30 CET
Rautaruukki 2004 figures for comparison according to IFRS standards
Rautaruukki Oyj Stock Exchange Release 26 April 2005 at 13.30
Rautaruukki Corporation adopted International Financial Reporting Standards
(IFRS) as from the beginning of 2005. The transition date to IFRS was 1 January
2004. Before adopting IFRS, Rautaruukki's financial statements were prepared in
accordance with Finnish Accounting Standards (FAS).
The adoption of the new accounting and financial statement practices means that
the Rautaruukki Group's balance sheet total at the end of 2004 increases by EUR
97 million and interest-bearing liabilities increase by EUR 69 million, mainly
due to the inclusion of assets acquired with finance leases in the balance sheet
and to the calculation of defined benefit pensions in accordance with IFRS. The
changes reduced shareholders' equity by EUR 1 million. The adoption of the new
accounting principles improves the 2004 net result by EUR 16 million.
the Rautaruukki Group's balance sheet total at the end of 2004 increases by EUR
97 million and interest-bearing liabilities increase by EUR 69 million, mainly
due to the inclusion of assets acquired with finance leases in the balance sheet
and to the calculation of defined benefit pensions in accordance with IFRS. The
changes reduced shareholders' equity by EUR 1 million. The adoption of the new
accounting principles improves the 2004 net result by EUR 16 million.
The financial statements were prepared applying the IAS/IFRS standards effective
at the end of 2004, with certain exceptions. The IFRS 1 transition standard was
applied. The standards IFRS 5 (Non-current assets held for sale and discontinued
operations) as well as IAS 32 and IAS 39 (Financial instruments) are applied as
from 1 January 2005. The 2004 figures relating to IAS 32 and IAS 39 have been
prepared in accordance with Finnish accounting practice (FAS). The adoption of
these standards did not significantly alter the total amount of shareholders'
equity, but added EUR 8 million in non-interest bearing receivables and
liabilities to the opening balance sheet on 1 January 2005.
at the end of 2004, with certain exceptions. The IFRS 1 transition standard was
applied. The standards IFRS 5 (Non-current assets held for sale and discontinued
operations) as well as IAS 32 and IAS 39 (Financial instruments) are applied as
from 1 January 2005. The 2004 figures relating to IAS 32 and IAS 39 have been
prepared in accordance with Finnish accounting practice (FAS). The adoption of
these standards did not significantly alter the total amount of shareholders'
equity, but added EUR 8 million in non-interest bearing receivables and
liabilities to the opening balance sheet on 1 January 2005.
The IFRS financial statements have been prepared on the basis of original cost.
The revaluation of tangible assets and the company's own shares included in the
FAS balance sheet have been eliminated from the IFRS balance sheet. Goodwill
arising from business combinations that took place before 1 January 2004
corresponds to the FAS carrying amount on 1 January 2004, which has been used as
the deemed cost. No amortisation on goodwill was made in 2004. Goodwill has been
tested for impairment.
The revaluation of tangible assets and the company's own shares included in the
FAS balance sheet have been eliminated from the IFRS balance sheet. Goodwill
arising from business combinations that took place before 1 January 2004
corresponds to the FAS carrying amount on 1 January 2004, which has been used as
the deemed cost. No amortisation on goodwill was made in 2004. Goodwill has been
tested for impairment.
The consolidated financial statements include all subsidiaries in which the
Group has a controlling interest. Associated companies, in which the Group has
an ownership of 20-50%, have been consolidated using the equity method.
Group has a controlling interest. Associated companies, in which the Group has
an ownership of 20-50%, have been consolidated using the equity method.
In accordance with IAS 17, leases under which the main part of the risks and
benefits involved in ownership of a leased asset lie with the Group have been
classified as finance leases. The leased commodity is then recognised as an
asset in the balance sheet and lease liabilities are included under interest-
bearing liabilities in the balance sheet. Revenue recognition of gains in sale
and lease-back situations has been adjusted to comply with IAS 17.
benefits involved in ownership of a leased asset lie with the Group have been
classified as finance leases. The leased commodity is then recognised as an
asset in the balance sheet and lease liabilities are included under interest-
bearing liabilities in the balance sheet. Revenue recognition of gains in sale
and lease-back situations has been adjusted to comply with IAS 17.
The Group has several pension schemes classified as either defined contribution
or defined benefit plans. Payments made for defined contribution plans are
entered as an expense in the income statement for the financial period during
which they occur. Retirement benefits arranged with the Pension Fund under the
Employees' Pensions Act and supplementary retirement benefits are treated as
defined benefit plans. All actuarial gains and losses have been included in the
opening balance sheet on the transition date as permitted by IFRS 1.
or defined benefit plans. Payments made for defined contribution plans are
entered as an expense in the income statement for the financial period during
which they occur. Retirement benefits arranged with the Pension Fund under the
Employees' Pensions Act and supplementary retirement benefits are treated as
defined benefit plans. All actuarial gains and losses have been included in the
opening balance sheet on the transition date as permitted by IFRS 1.
The stock options issued by Rautaruukki and the shares paid in accordance with
the management incentive scheme have been valued at fair value at issue date and
are entered as an expense on a straight-line basis during the commitment period.
In accordance with the IFRS 2 adoption regulations, stock options issued prior
to 7 November 2002 have not been recognised in the income statement during the
commitment period.
the management incentive scheme have been valued at fair value at issue date and
are entered as an expense on a straight-line basis during the commitment period.
In accordance with the IFRS 2 adoption regulations, stock options issued prior
to 7 November 2002 have not been recognised in the income statement during the
commitment period.
Income taxes have been reported in compliance with IAS 12, which means that
deferred taxes are recognised on all tax deductible and non-deductible temporary
differences.
deferred taxes are recognised on all tax deductible and non-deductible temporary
differences.
The primary segments presented in Rautaruukki Corporation's IFRS financial
statements as from the beginning of 2005 are Ruukki Construction, Ruukki
Engineering and Ruukki Metals. The operations of Ruukki Fabrication, which was
reported separately in 2004, have been combined with these divisions.
statements as from the beginning of 2005 are Ruukki Construction, Ruukki
Engineering and Ruukki Metals. The operations of Ruukki Fabrication, which was
reported separately in 2004, have been combined with these divisions.
As from 1 January 2005, the Group's financial reporting will be based on the
segments mentioned above, and the 2004 figures for comparison presented in this
release have been amended to correspond to the new divisions.
segments mentioned above, and the 2004 figures for comparison presented in this
release have been amended to correspond to the new divisions.
The adoption of the IFRS standards will have no significant impact on the cash
flow statement.
flow statement.
The most important effects of the adoption of IFRS on quarterly financial
reporting for 2004 are presented below. Reconciliation calculations for equity
and profit for the financial year are presented separately. Numbers in brackets
refer to appendices.
reporting for 2004 are presented below. Reconciliation calculations for equity
and profit for the financial year are presented separately. Numbers in brackets
refer to appendices.
PROFIT AND LOSS ACCOUNT
EUR million
by quarters Q1/04 Q2/04 Q3/04
FAS IFRS FAS IFRS FAS IFRS
Net sales (9) 795 794 913 911 855 854
Other operating income (3) 5 6 1 3 2 2
Operating expenses (1,2,3,4,6,9) -686 -681 -749 -745 -694 -689
Depreciation (3,4) -42 -43 -46 -46 -39 -40
Operating profit 73 76 119 123 123 128
Financing income and expenses(3,6)-10 -10 -15 -16 -9 -9
Profit before taxes 63 66 104 108 115 118
Taxes (5) -21 -18 -13 -13 -35 -35
Profit after taxes 42 48 91 94 80 83
Minority interests 0 0 0 0 0 0
Profit of the period 42 48 91 94 79 83
EUR million
by quarters Q1/04 Q2/04 Q3/04
FAS IFRS FAS IFRS FAS IFRS
Net sales (9) 795 794 913 911 855 854
Other operating income (3) 5 6 1 3 2 2
Operating expenses (1,2,3,4,6,9) -686 -681 -749 -745 -694 -689
Depreciation (3,4) -42 -43 -46 -46 -39 -40
Operating profit 73 76 119 123 123 128
Financing income and expenses(3,6)-10 -10 -15 -16 -9 -9
Profit before taxes 63 66 104 108 115 118
Taxes (5) -21 -18 -13 -13 -35 -35
Profit after taxes 42 48 91 94 80 83
Minority interests 0 0 0 0 0 0
Profit of the period 42 48 91 94 79 83
EPS, diluted, e 0.31 0.35 0.66 0.69 0.58 0.60
Operating profit, % of net sales 9.1 9.5 13.1 13.5 14.4 14.9
Operating profit, % of net sales 9.1 9.5 13.1 13.5 14.4 14.9
EPS, basic, e 0.31 0.36 0.67 0.69 0.59 0.61
PROFIT AND LOSS ACCOUNT
EUR million
Q4/04 2004
FAS IFRS FAS IFRS Change
Net sales (9) 1006 1005 3569 3564 -6
Other operating income (3) 8 9 16 19 2
Operating expenses (1,2,3,4,6,9) -809 -801 -2937 -2915 23
Depreciation (3,4) -46 -47 -173 -175 -2
Operating profit 160 166 475 493 17
Financing income and expenses (3,6) -12 -14 -45 -49 -4
Profit before taxes 148 152 430 443 13
Taxes (5) -48 -48 -116 -114 3
Profit after taxes 101 104 314 330 16
Minority interests 0 0 -1 -1 0
Profit of the period 101 104 313 329 16
EUR million
Q4/04 2004
FAS IFRS FAS IFRS Change
Net sales (9) 1006 1005 3569 3564 -6
Other operating income (3) 8 9 16 19 2
Operating expenses (1,2,3,4,6,9) -809 -801 -2937 -2915 23
Depreciation (3,4) -46 -47 -173 -175 -2
Operating profit 160 166 475 493 17
Financing income and expenses (3,6) -12 -14 -45 -49 -4
Profit before taxes 148 152 430 443 13
Taxes (5) -48 -48 -116 -114 3
Profit after taxes 101 104 314 330 16
Minority interests 0 0 -1 -1 0
Profit of the period 101 104 313 329 16
EPS, diluted, e 0.73 0.76 2.28 2.40 0.12
Operating profit, % of net sales 15.9 16.5 13.3 13.8 0.5
Operating profit, % of net sales 15.9 16.5 13.3 13.8 0.5
EPS, basic, e 0.74 0.77 2.31 2.42 0.12
PROFIT AND LOSS ACCOUNT
Cumulative Q1/04 Q1-Q2/04 Q1-Q3/04
EUR million FAS IFRS FAS IFRS FAS IFRS
Net sales (9) 795 794 1708 1705 2563 2559
Other operating income (3) 5 6 6 8 8 10
Operating expenses (1,2,3,4,6,9) -686 -681 -1435 -1425 -2129 -2114
Depreciation (3,4) -42 -43 -88 -89 -127 -129
Operating profit 73 76 192 199 315 327
Financing income and expenses(3,6)-10 -10 -25 -26 -34 -35
Profit before taxes 63 66 167 173 282 292
Taxes -21 -18 -34 -31 -69 -66
Profit after taxes 42 48 133 142 213 226
Minority interests 0 0 0 0 -1 -1
Profit of the period 42 48 133 142 212 225
EPS, diluted, e 0,31 0,35 0,97 1,04 1,55 1,64
Operating profit, % of net sales 9,1 9,5 11,2 11,7 12,3 12,8
Operating profit, % of net sales 9,1 9,5 11,2 11,7 12,3 12,8
EPS, basic, e 0,31 0,36 0,98 1,05 1,57 1,66
BALANCE SHEET 31.3.2004 30.6.2004 30.9.2004
EUR million FAS IFRS FAS IFRS FAS IFRS
Assets
Non-current assets(1,3,4,5,7,8,9)1299 1409 1277 1382 1265 1370
Inventories (9) 487 494 518 526 587 596
Debtors (9) 632 587 627 586 624 580
Cash in hand and at banks 89 89 77 77 84 84
2507 2579 2500 2572 2560 2631
Liabilities
Capital and reserves
(1,2,3,4,5,6,7,8,9) 853 845 947 941 1027 1025
Provisions (1,9) 56 32 59 35 65 41
Non-current interest
bearing creditors (3) 639 693 596 648 565 616
Non-current non-interest
bearing creditors (1,2,5) 160 190 142 171 146 174
Current interest bearing
creditors (3) 349 349 285 285 259 259
Current non-interest
bearing creditors (1,2,9) 450 470 471 491 498 517
2507 2579 2500 2572 2560 2631
Capital and reserves
(1,2,3,4,5,6,7,8,9) 853 845 947 941 1027 1025
Provisions (1,9) 56 32 59 35 65 41
Non-current interest
bearing creditors (3) 639 693 596 648 565 616
Non-current non-interest
bearing creditors (1,2,5) 160 190 142 171 146 174
Current interest bearing
creditors (3) 349 349 285 285 259 259
Current non-interest
bearing creditors (1,2,9) 450 470 471 491 498 517
2507 2579 2500 2572 2560 2631
BALANCE SHEET 31.12.2004 31.12.2003
EUR million FAS IFRS Change FAS IFRS
Assets
Non-current assets(1,3,4,5,7,8,9) 1284 1417 133 1329 1468
Inventories (9) 640 651 11 502 508
Debtors (9) 632 584 -47 523 478
Cash in hand and at banks 60 60 0 49 49
2616 2712 97 2403 2503
Liabilities
Capital and reserves (1,2,3,4,5,6,7,8,9) 1128 1127 -1 839 821
Provisions (1,9) 58 38 -20 60 36
Non-current interest bearing creditors (3) 556 625 69 768 846
Non-current non-interest bearing
creditors (1,2) 155 186 30 160 199
Current interest bearing creditors (3) 195 195 0 204 204
Current non-interest bearing
creditors (1,2,9) 523 541 18 373 396
2616 2712 97 2403 2503
Capital and reserves (1,2,3,4,5,6,7,8,9) 1128 1127 -1 839 821
Provisions (1,9) 58 38 -20 60 36
Non-current interest bearing creditors (3) 556 625 69 768 846
Non-current non-interest bearing
creditors (1,2) 155 186 30 160 199
Current interest bearing creditors (3) 195 195 0 204 204
Current non-interest bearing
creditors (1,2,9) 523 541 18 373 396
2616 2712 97 2403 2503
KEY FIGURES Q1/04 Q1-Q2/04 Q1-Q3/04
FAS IFRS FAS IFRS FAS IFRS
Net sales, Me 795 794 1708 1705 2563 2559
Operating profit, Me 73 76 192 199 315 327
as % of net sales 9.1 9.5 11.2 11.7 12.3 12.8
Profit before taxes, Me 63 66 182 189 306 317
as % of net sales 7.9 8.3 9.8 11.1 11.0 12.4
Return on capital employed, % 9.3 9.5 13.4 13.7 17.1 17.7
Return on equity, % 10.9 11.6 18.0 19.2 22.8 24.6
Equity ratio, % 33.7 32.9 37.7 36.7 40.0 39.1
Gearing ratio, % 107 113 86 91 73 77
Gross capital expenditure, Me 24 24 51 51 82 82
as % of net sales 3.0 3,0 3.0 3,0 3.2 3.2
Net interest expenses, Me 11 12 21 23 31 34
as % of net sales 1.4 1.5 1.2 1.3 1.2 1.3
Interest bearing net debt, Me 900 953 803 855 741 791
Balance sheet total, Me 2507 2579 2500 2572 2560 2631
EPS, basic, e 0.31 0.36 0.98 1.05 1.57 1.66
EPS, diluted, e 0.31 0.35 0.97 1.04 1.55 1.64
Equity per share, e 6.17 8.29 6.87 6.93 7.45 7.53
Price per earnings, P/E 6.8 6.3 5.0 4.7
KEY FIGURES 2004
FAS IFRS Change
Net sales, Me 3569 3564 -6
Operating profit, Me 475 493 17
as % of net sales 13.3 13.8 0.5
Profit before taxes, Me 430 443 13
as % of net sales 12.1 12.4 0.3
Return on capital employed, % 26.1 26.0 -0.1
Return on equity, % 32.4 33.8 1.4
Equity ratio, % 43.0 41.7 -1.3
Gearing ratio, % 62 68 5
Gross capital expenditure, Me 149 149 0
as % of net sales 4.2 4,2 0
Net interest expenses, Me 40 46 6
as % of net sales 1.1 1.3 0
Interest bearing net debt, Me 692 761 69
Balance sheet total, Me 2616 2712 97
EPS, basic, e 2.31 2.42 0.11
EPS, diluted, e 2.28 2.40 0.12
Equity per share, e 8.20 8.29 0.09
Dividend per earnings, % 34.7 33.0 -1.7
Price per earnings, P/E 3,8 3,6 -0.2
PROFIT FOR THE PERIOD
EUR million Q1/04 Q2/04 Q3/04 Q4/04 2004
Net profit according to FAS 42 91 79 101 313
IAS 18 Revenue (9) 0 0 0 0 0
IAS 19 and IFRS 2 Employee benefits (1,2) 2 2 2 0 5
IAS 17 Leases (3) 0 0 0 0 1
IFRS 3 Business combinations (4) 1 1 1 2 6
IAS 12 Income taxes (5) 3 0 0 0 3
Others (9) 0 0 0 0 1
Net profit according to IFRS 48 94 83 104 329
EUR million Q1/04 Q2/04 Q3/04 Q4/04 2004
Net profit according to FAS 42 91 79 101 313
IAS 18 Revenue (9) 0 0 0 0 0
IAS 19 and IFRS 2 Employee benefits (1,2) 2 2 2 0 5
IAS 17 Leases (3) 0 0 0 0 1
IFRS 3 Business combinations (4) 1 1 1 2 6
IAS 12 Income taxes (5) 3 0 0 0 3
Others (9) 0 0 0 0 1
Net profit according to IFRS 48 94 83 104 329
CAPITAL AND RESERVES 31.12. 31.3. 30.6. 30.9. 31.12.
EUR million 2003 2004 2004 2004 2004
Capital and reserves according to FAS 838 852 946 1026 1127
The effects of IFRS adoption:
IAS 18 Revenue (9) -2 -3 -3 -3 -2
IAS 19 and IFRS 2 Employee benefits (1,2) 67 71 73 74 72
IAS 17 Leases (3) -32 -30 -30 -30 -32
IFRS 3 Business combinations (4) 0 1 2 3 6
IAS 12 Income taxes (5) -3 -1 -1 -2 -1
IAS 32 Treasury shares (7) -15 -15 -15 -14 -14
IAS 16 Property, plant and equipment (8) -33 -33 -33 -33 -32
Others (9) 0 1 1 0 1
IFRS adjustments, total -18 -8 -6 -2 -1
Capital and reserves according to IFRS 820 844 940 1023 1126
APPENDICES
1) Employee benefits
Pension schemes
The Group's retirement benefit plans are classified as either defined
contribution or defined benefit plans. Payments for defined contribution plans
are entered as an expense in the financial period during which they occur.
contribution or defined benefit plans. Payments for defined contribution plans
are entered as an expense in the financial period during which they occur.
According to the interpretation applied by the Group, the way that IAS 19 treats
the TEL insurance based on the Finnish Employees' Pensions Act and the
disability benefit arranged in the pension fund is that expenses arising from
the benefit are recorded when the event causing disability took place. According
to this interpretation, no liability is entered in the opening balance sheet for
a work disability pension based on the TEL insurance against future events.
Since the fair value of assets in the fund thus exceeds the calculated pension
commitment, employee benefits arranged in the pension fund create an asset item
in the 31 December 2004 consolidated balance sheet of EUR 68 million. Long-term
liabilities in the FAS balance sheet include pension provisions of EUR 25
million, which have been taken into account in this asset item in the IFRS
balance sheet. All actuarial gains and losses were recognised in the opening
balance sheet at the transition date, as permitted by IFRS 1.
The pension insurances under the Employees' Pensions Act arranged with insurance
companies are mainly classified as defined contribution plans.
companies are mainly classified as defined contribution plans.
In 2004, the total effect of IFRS treatment of Rautaruukki's various retirement
benefit arrangements increased the operating profit by EUR 3 million.
benefit arrangements increased the operating profit by EUR 3 million.
In Sweden, pensions are based on the state defined contribution scheme and the
supplementary ITP scheme, which is classified as a defined benefit plan. Since
insufficient information is available about Alecta, the company that administers
ITP pensions, pensions insured with Alecta have also been processed as a defined
contribution plan, in accordance with local practice.
supplementary ITP scheme, which is classified as a defined benefit plan. Since
insufficient information is available about Alecta, the company that administers
ITP pensions, pensions insured with Alecta have also been processed as a defined
contribution plan, in accordance with local practice.
No major changes affecting the Group have taken place in other countries in the
treatment of pensions.
treatment of pensions.
Other employee benefits
In accordance with IAS 19, other long-term employee benefits have also been
apportioned, the most important of these are long-service benefits. These
reduced the result for 2004 by EUR 3 million.
apportioned, the most important of these are long-service benefits. These
reduced the result for 2004 by EUR 3 million.
2) Share-based benefits (management option schemes and share bonus system)
The stock options issued as part of the management's incentive and commitment
programme and other shares relating to bonuses paid as shares have been valued
at fair value at issue date. The fair value of the stock options has been
calculated using the Black-Scholes option pricing model. The value established
at issue date is recognised as expense in the income statement on a straight-
line basis during the commitment period. The adjustment relating to share-based
payments improves the 2004 IFRS result by EUR 5 million compared to the FAS
result.
programme and other shares relating to bonuses paid as shares have been valued
at fair value at issue date. The fair value of the stock options has been
calculated using the Black-Scholes option pricing model. The value established
at issue date is recognised as expense in the income statement on a straight-
line basis during the commitment period. The adjustment relating to share-based
payments improves the 2004 IFRS result by EUR 5 million compared to the FAS
result.
3) Leases (finance leases)
Leases meeting the criteria of IAS 17 have been classified as finance leases and
recognised in the balance sheet. The tangible assets in the 2004 closing balance
sheet include a total of EUR 57 million in buildings financed by leases and
other tangible assets. The lease liabilities of finance leases have been entered
in interest-bearing liabilities on the balance sheet. At the end of 2004,
interest-bearing debt relating to finance lease agreements totalled EUR 69
million. Lease payments have been apportioned between financial costs and
repayment of leasing debt. Finance lease assets are depreciated over the shorter
of the lease term or the useful economic life of the asset. The change in the
accounting practice for leases has improved the operating result and increased
financial costs by EUR 6 million in 2004.
recognised in the balance sheet. The tangible assets in the 2004 closing balance
sheet include a total of EUR 57 million in buildings financed by leases and
other tangible assets. The lease liabilities of finance leases have been entered
in interest-bearing liabilities on the balance sheet. At the end of 2004,
interest-bearing debt relating to finance lease agreements totalled EUR 69
million. Lease payments have been apportioned between financial costs and
repayment of leasing debt. Finance lease assets are depreciated over the shorter
of the lease term or the useful economic life of the asset. The change in the
accounting practice for leases has improved the operating result and increased
financial costs by EUR 6 million in 2004.
The recognition of sales profit arising from sale and lease-back situations has
been adjusted in accordance with the principles of IAS 17 by apportioning the
sales profit over the lease period. These adjustments improved the operating
result by EUR 2 million in 2004. The remaining sales profit to be recognised in
short-term interest-free liabilities in the balance sheet stood at EUR 19
million at the end of 2004.
been adjusted in accordance with the principles of IAS 17 by apportioning the
sales profit over the lease period. These adjustments improved the operating
result by EUR 2 million in 2004. The remaining sales profit to be recognised in
short-term interest-free liabilities in the balance sheet stood at EUR 19
million at the end of 2004.
4) Goodwill (IFRS 3 Business combinations)
The goodwill arising from business combinations before the IFRS adoption date in
the opening balance sheet corresponds to the FAS carrying amount. According to
IFRS 3, goodwill is not amortised. Goodwill has been tested for impairment. The
change in goodwill amortisation practice arising from the adoption of IFRS
increases the 2004 profit by EUR 6 million. At the end of 2004, the amount of
goodwill was EUR 38 million.
the opening balance sheet corresponds to the FAS carrying amount. According to
IFRS 3, goodwill is not amortised. Goodwill has been tested for impairment. The
change in goodwill amortisation practice arising from the adoption of IFRS
increases the 2004 profit by EUR 6 million. At the end of 2004, the amount of
goodwill was EUR 38 million.
5) Income taxes
Deferred tax assets and liabilities have been recognised for all temporary
differences between the taxable values and carrying amounts of assets and
liabilities. Deferred taxes have been calculated at the tax rates effective on
the balance sheet date. The opening IFRS balance sheet includes adjustments of
EUR 23 million in deferred tax assets and EUR 27 in deferred tax liabilities
relating to IFRS differences. The most important changes in deferred tax
liabilities and assets result from defined benefit pension plans and because the
revaluation of tangible assets made in accordance with FAS was eliminated. At
the end of 2004, deferred liabilities totalled EUR 162 million, which is EUR 18
million more than on the FAS balance sheet at the corresponding date. Deferred
tax assets totalled 41 million on the IFRS balance sheet, or EUR 17 million more
than on the FAS consolidated balance sheet.
differences between the taxable values and carrying amounts of assets and
liabilities. Deferred taxes have been calculated at the tax rates effective on
the balance sheet date. The opening IFRS balance sheet includes adjustments of
EUR 23 million in deferred tax assets and EUR 27 in deferred tax liabilities
relating to IFRS differences. The most important changes in deferred tax
liabilities and assets result from defined benefit pension plans and because the
revaluation of tangible assets made in accordance with FAS was eliminated. At
the end of 2004, deferred liabilities totalled EUR 162 million, which is EUR 18
million more than on the FAS balance sheet at the corresponding date. Deferred
tax assets totalled 41 million on the IFRS balance sheet, or EUR 17 million more
than on the FAS consolidated balance sheet.
6) Income from associated companies
The IFRS income statement reports the total income from associates under
operating profit. Income from associated companies for 2004 was EUR 2 million.
operating profit. Income from associated companies for 2004 was EUR 2 million.
7) Investments
The company has in previous years purchased its own shares. These shares had a
value of EUR 14 million in the Finnish financial statements. In accordance with
IFRS practice, the company shares held by the company have been deducted from
asset items and from shareholders' equity.
value of EUR 14 million in the Finnish financial statements. In accordance with
IFRS practice, the company shares held by the company have been deducted from
asset items and from shareholders' equity.
8) Revaluation
Rautaruukki Corporation revalued certain land areas and buildings in the 1970s
by a total of EUR 33 million, which, after deducting the tax liability, has
increased shareholders' equity by EUR 24 million. These revaluations were not
carried out in accordance with IFRS regulations and so they have been deducted
from assets in the IFRS balance sheet and from the revaluation reserve for
shareholders' equity, and the corresponding tax liability has been eliminated.
by a total of EUR 33 million, which, after deducting the tax liability, has
increased shareholders' equity by EUR 24 million. These revaluations were not
carried out in accordance with IFRS regulations and so they have been deducted
from assets in the IFRS balance sheet and from the revaluation reserve for
shareholders' equity, and the corresponding tax liability has been eliminated.
9) Other changes
Other changes compared to previous practice arise from certain reclassifications
and from minor differences in defining the date for recognition and the value of
fixed assets.
and from minor differences in defining the date for recognition and the value of
fixed assets.
For further information, please contact:
CFO Mikko Hietanen, tel. +358 40 579 4359
Rautaruukki Corporation
Taina Kyllönen
VP, Corporate Communications
VP, Corporate Communications
Ruukki supplies components, systems and total solutions to the construction and
mechanical engineering industries. The company has a wide selection of metal
products and services. Ruukki has operations in 24 countries and employs 12,000
people. Net sales in 2004 totalled EUR 3.6 billion. The company's share is
quoted on the Helsinki Exchanges (Rautaruukki Corporation: RTRKS).