Rautaruukki's profit was good but decreased compared with year before

Rautaruukki Corporation Stock Exchange Release 26.4.2006 klo 9.01 
 
Summary of the January-March 2006 results (comparative figures for Jan-Mar
2005), unaudited
 
- Net sales EUR 856 million (1014, comparable 822)
- Operating profit EUR 95 million (201, comparable 163) includes EUR 19 million
costs for share bonus schemes
- Profit before taxes EUR 101 million (194)
- Earnings per share (diluted) EUR 0.56 (1.06)
- Gearing ratio 19.6 per cant (53.6)
- First-half operating profit is estimated to be at the good level achieved in
the second half of 2005.
 
 
Key figures                           2006    2005     2005   2005*   2005*
                                       1-3     1-3     1-12     1-3    1-12
Net sales, Me                          856    1014     3654     822    3402
Operating profit, Me                    95     201      618     163     569
Operating profit, % of net sales      11.1    19.8     16.9    19.8    16.7
Profit before taxes, Me                101     194      612
EPS, diluted, e                       0.56    1.06     3.31
*Comparable figures excluding Ovako
 
The Interim report is unaudited.
 
 
First-quarter highlights compared with the previous quarter (Oct-Dec 2005)
 
- Net sales were down about 4 per cent
- The drop in net sales and operating profit was attributable mainly to the
 seasonal slowdown in construction activity
- The effect of the costs of share bonus schemes on the decrease in operating
 profit was EUR 10 million compared with the previous quarter
- In the report period, the solutions businesses accounted for 31 per cent of
 net sales and 34 per cent of operating profit
- Average selling prices of flat steel products strengthened somewhat
- PPTH was consolidated within the Group financial statements as from 1 January
- The Steel-Mont acquisition was completed on 30 March 2006. The company was
consolidated within the Group financial statements as from 1 April
- An agreement on the purchase of OOO Ventall was signed on 31 March 2006
- An agreement on selling the reinforcing steel business after the report period
 
 
President and CEO Sakari Tamminen:
 
"The market situation has held up well during the first part of the year. There
was a seasonal slowdown in construction activity in the first quarter, but the
normal pace of building is getting under way as the summer approaches. Order
books in the engineering industry continue to show strength, and this has been
reflected in the positive trend in Ruukki's deliveries. Market situation for
standard steel products is clearly strengthening.
 
We have pushed ahead with gearing our operations towards the solutions
businesses, which now make up a good third of our net sales and operating
profit. The PPTH and Steel-Mont acquisitions that were carried out during the
report period will round out our capabilities of making integrated deliveries to
construction customers and they bolster our project expertise. In March, we
announced the purchase of the Russian steel constructer OOO Ventall. This
acquisition is a strategically important step for us in the fast-growing steel
construction market in Russia. Ruukki's construction solutions business now has
a strong basis that will enable it to grow in the main customer segments in our
core markets, which are central eastern Europe, Russia and Ukraine.
 
After the report period we made an agreement on selling the company's
reinforcing steel business. The move further sharpens the focus of our corporate
structure and continues to make us a more solutions-oriented company, whilst
freeing up capital.
 
The full-year net sales in 2006 are expected to be higher than comparable net
sales in 2005. Operating profit in the first half of 2006 is estimated to be at
the good level posted in the second half of last year and to improve somewhat
during the latter part of the year. "
 
 
ADDITIONAL INFORMATION
 
President and CEO Sakari Tamminen, tel. +358 20 592 9075
CFO Mikko Hietanen, tel. +358 20 592 9030
 
 
Press conference
 
Presentation for analysts and press will be held on 26 April 2006 at 10:30
Finnish time at Ruukki, Suolakivenkatu 1, 00810 Helsinki.
 
 
Webcast and conference call
 
Conference call and Webcast for analysts and investors, conducted in English,
will begin at 14:00 Finnish time. The webcast may be followed on the company
website at www.ruukki.com/investors. To attend the conference call, please call
5 - 10 minutes before the scheduled start time to the following telephone
number: +44 (0) 20 7162 0125, Password: Rautaruukki.
 
The encore replay number: +44 (0) 20 7031 4064, Access code: 701203. (The phone
number has changed from the one mentioned in the stock exchange announcement on
18 April 2006.)
The encore replay will be available until 29 April 2006.
 
The Interim report January-March 2006 will be available on the company website
at www.ruukki.com/investors.
 
 
Rautaruukki Corporation
 
Taina Kyllönen
VP, Corporate Communications
 
 
Ruukki supplies metal-based components, systems and integrated systems to the
construction and mechanical engineering industries. The company has a wide
selection of metal products and services. Ruukki has operations in 23 countries
and employs 12,000 people. Net sales in 2005 totalled EUR 3.7 billion. The
company's share is quoted on the Helsinki Exchanges (Rautaruukki Corporation:
RTRKS). The Corporation has used the marketing name Ruukki since 2004.
 
 
 
DISTRIBUTION
Helsinki Exchanges
Principal Media
www.ruukki.com