Rautaruukki reports an excellent year - demand outlook good

Rautaruukki Oyj Stock Exchange Release 8 Feb 2006 at 9.01 

Summary of financial statements (unaudited)

- Earnings per share (diluted) EUR 3.31 euroa (2.40).
- Boards proposal for dividend EUR 1.40 per share.
- Net sales EUR 3,654 million (2004: reported 3,564, comparable 3,192).
- Operating profit EUR 618 million (2004: reported 493, comparable 446)
- Profit before taxes EUR 612 million (443).
- Gearing ratio 22.8 per cent (68.0).

Key figures                      2005*      2004    2005*      2004   2004**
                                 10-12     10-12     1-12      1-12     1-12
Net sales, Me                      889      1005     3654      3564     3192
Operating profit, Me               123       166      618       493      446
Operating profit, % of net sales  13.8      16.5     16.9      13.8     14.0
Share of results in
associated companies, Me             4         0       23         2
Profit before taxes, Me            121       152      612       443
Earnings per share, e             0.68      0.76     3.31   2.40***
*Ovako has been included as an associated company in Rautaruukki's consolidated
financial statements as from 1 May 2005. Metalplast has been included in
Rautaruukki's consolidated financial statements as from 1 June 2005 and Syneco
Industri as from 1 October 2005.
**Comparable figures 2004.
***The reduction in the deferred tax liability resulting from the change in
Finnish tax legislation increased EPS by EUR 0.13.


Fourth-quarter highlights

- Operating profit improved on the third quarter.
- Deliveries up on the previous quarter.
- Profitability-driven control of sales and production moved ahead.
- Wholesalers' inventory situation normalised.
- Average selling prices decreased slightly.
- Competition authorities' approval for the PPTH acquisition. The deal closed on
18 January 2006.
- Agreement signed on purchase of Steel-Mont.


President and CEO Sakari Tamminen:

"The market situation in our most important customer sectors in the construction
and engineering industries remained good. The operating environment for standard
steel products was more challenging, but it began to firm up towards the end of
the year. Rautaruukki posted excellent profits in 2005, and the company's
balance sheet structure is now good.

During the year we carried out major structural changes whereby the Group's
operations were geared towards the solutions businesses. The long steel products
business was spun off into Oy Ovako Ab, which is jointly owned by Wärtsilä and
SKF. The new company's first period of operation was successful.

We strengthened our solutions businesses through acquisitions. At our
construction division, Ruukki Construction, acquisitions enabled us to
strengthen our capabilities to deliver integrated systems. Within building
construction, we are centring our efforts on retail, industrial and logistics
facilities, and on infrastructure projects. We are now able to supply our
customers, on an integrated basis, with foundations as well as envelope and
frame structures and to take on an increased responsibility for design and total
projects. For our customers, this means a shorter construction time and smaller
risk. During 2005 we have laid the groundwork for growing this business, where
our geographical focus is on the growing markets of central eastern Europe,
Russia and Ukraine. It is in these markets where we see the strongest potential
for the construction solutions we offer.

Our customers in the engineering industry are concentrating on their core
businesses and are outsourcing operations. Ruukki Engineering's product range
for the lifting, handling and transportation equipment industry has been
bolstered through acquisitions, giving it the readiness to deliver larger
solutions ranging from cabins, frames, masts and booms all the way to completely
assembled end products such as the drilling rig from Kurikka. The existing
structure makes us well placed to achieve organic growth in coming years. The
very good demand in the lifting, handling and transportation equipment industry
and a wider role in our customers' value chain have indeed already brought a
significant increase in the division's business volume.

The market situation in Rautaruukki's core market areas has been good in the
current quarter. Demand is expected to hold up well within construction and the
engineering industry, and prices of steel products are set to strengthen. Net
sales for the full year in 2006 are expected to increase on the comparative
previous year figure, and operating profit in the first half of the year should
come in at the good level reached in the second half of last year. Major factors
of uncertainty relate to the way in which the steel product markets in Asia
develop and to general trend in the world economy."


ADDITIONAL INFORMATION

President and CEO Sakari Tamminen, tel. +358 20 592 9075
CFO Mikko Hietanen, tel. +358 20 592 9030


Press conference

Rautaruukki will arrange a press conference on the financial statements on 8
February 2006 at 10.30 a.m. at Company Headquarters, address: Suolakivenkatu 1,
00810, Helsinki.


Webcast and conference call

The webcast and conference call for investors and analysts can be viewed live on
the company's website at www.ruukki.com/investors today, 8 February 2006, at
2.00 p.m. To attend the conference call, please call to the following telephone
number +44 (0) 20 7162 0025, password: Rautaruukki, around 5 - 10 minutes before
the conference starts.

The encore replay number:
+44 (0) 20 7031 4064
Access code: 689646
The encore replay will be available until 11 February 2006.

The 2005 financial statements bulletin is available on the company's website,
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).



DISTRIBUTION
Helsinki Exchanges
Principal Media
www.ruukki.com