October 24, 2007
08:01 CET
Rautaruukki's operating profit increased by 49 per cent in January-September, Good market situation expected to continue
Rautaruukki Oyj Stock exchange announcement 24 October 2007 at 9.01
Summary of the January-September results (comparable figures for Jan-Sept 2006)- Net sales EUR 2 895 million (2 669, comparable 2 502), up 16 per cent oncomparable net sales- Operating profit EUR 518 million (362, comparable 348), increase of 49 percent on comparable operating profit- Earnings per share (diluted) EUR 2.74 (2.09)- Operating profit for 2007 will markedly exceed the comparative figure for lastyear. The good market situation in the company's customer industries is expectedto continue. This will form a good platform for Rautaruukki in 2008.--------------------------------------------------------------------------------| KEY FIGURES | Q3/07 | Q3/06 | Q1-Q3/ | Q1-Q3/ | 2006 | 2006* || | | | 07 | 06 | | |--------------------------------------------------------------------------------| Net sales, EUR m | 935 | 885 | 2 895 | 2 669 | 3 682 | 2 502 |--------------------------------------------------------------------------------| Operating profit, EUR m | 162 | 140 | 518 | 362 | 529 | 348 |--------------------------------------------------------------------------------| Operating profit as % of | 17.3 | 15.9 | 17.9 | 13.6 | 14.4 | 13.9 || net sales | | | | | | |--------------------------------------------------------------------------------| Profit before taxes, EUR | 159 | 141 | 512 | 378 | 635 | || m | | | | | | |--------------------------------------------------------------------------------| Earnings per share, | 0.85 | 0.76 | 2.74 | 2.09 | 3.65 | || diluted, EUR | | | | | | |--------------------------------------------------------------------------------| Return on capital | | | 33.6 | 25.3 | 30.1 | || employed**, % | | | | | | |--------------------------------------------------------------------------------| Gearing ratio, % | | | 10.0 | 25.3 | 1.2 | |--------------------------------------------------------------------------------| Personnel on average | | | 14 864 | 13 063 | 13 121 | |--------------------------------------------------------------------------------| * The comparable figures exclude the Nordic Reinforcing units, which were || part of the Group until 31 July 2006. || **Based on the previous 12 months |--------------------------------------------------------------------------------January-September highlights- Continued strong demand across Ruukki's core market area and in main customerindustries- Strong demand and deliveries continued within building construction in theNordic countries, Russia and Central Eastern Europe- Brisk demand and deliveries at good level in infrastructure construction- Ruukki Construction almost doubled operating profit to EUR 117 million- Strong order books in all engineering customer sectors- Acquisitions have given Rautaruukki major new customers in the lifting,handling and transportation industry and expanded its product range- Special steel products continued to form an increasing share of sales- Strong organic business growth, especially in Central Eastern Europe andRussia, increased Group's headcount by 12 per cent year-on-yearPresident & CEO Sakari Tamminen comments on January-September results:- Our net sales increased by 16 per cent and operating profit by 49 per cent ona comparable basis over the same period last year. We have seen steady, strongprofitability development during past quarters. In line with our strategy wehave successfully increased the share of the solutions businesses - RuukkiConstruction and Ruukki Engineering - of our net sales. We also aim to increasethe share of special products of Ruukki Metals division's net sales from thecurrent figure of 24 per cent to 40 per cent by the end of 2010.There was continued brisk construction activity during January-September anddeliveries increased in all markets, especially in the Nordic countries, Russiaand Central Eastern Europe. Strong demand continued both in office andcommercial construction and in infrastructure construction. Most of ourdeliveries focused on large transport infrastructure and harbour projectsalready under way in Finland, the Nordic countries and Russia. Our investmentsto increase production capacity in Central Eastern Europe, Finland and Russiaprogress as planned and will strengthen our delivery capability in our fastgrowing core market areas.Order books remained strong in all Ruukki Engineering division's customersectors. There was further growth in demand in the wind turbine industry. Demandin the paper and wood processing industry as well as shipbuilding and offshoresectors has remained strong in Europe. Hungarian company AGJ, acquired in May,has given us major new customers within the lifting, handling and transportationindustry and enabled us to expand our product range. Integration of acquisitionsinto Ruukki Engineering is under way and we expect the performance of theseunits to improve during the course of next year.There was continued strong growth within steel products in our core market area.Profitability improved as a result of increased sales prices and a change in thesales structure. Special steel products and direct deliveries to end-customersaccounted for a marked increase in the share of deliveries. The investmentcompleted in September at the Raahe Works will further increase the productioncapacity of special steels.Comparable net sales in 2007 are expected to develop in line with growth targetsset. Operating profit for 2007 will markedly exceed the comparative figure forlast year. We expect the good market situation in the company's customerindustries to continue. This will form a good platform for Rautaruukki in 2008.Further information is available from:Sakari Tamminen, President & CEO, tel.+358 20 592 9075Mikko Hietanen, CFO, tel. +358 20 592 9030Press conferenceRautaruukki will hold a press conference on the results for the first ninemonths of the year on 24 October 2007 at 10.30am Finnish time at corporateheadquarters, Suolakivenkatu 1, 00810 Helsinki.Webcast and conference callThe webcast and conference call for investors and analysts can be viewed live onthe company's website at www.ruukki.com/investors, today 24 October starting at14.00 Finnish time.To attend the conference call, please call +44 (0) 20 7162 0125, password:Rautaruukki, about 5-10 minutes before the conference starts. The encore replaycan be heard until 27 October on +44 (0) 20 7031 4064, access code: 769039.The interim report for January-September 2007 may be viewed on the company'swebsite at www.ruukki.com/investors.This release is unaudited.Rautaruukki OyjAnne PiriläSVP, Corporate Communications and Investor RelationsRautaruukki supplies metal-based components, systems and integrated systems tothe construction and mechanical engineering industries. The company has a wideselection of metal products and services. Rautaruukki has operations in 24countries and employs 14,500 people. Net sales in 2006 totalled EUR 3.7 billion.The company's share is quoted on the OMX Nordic Exchange Helsinki (RautaruukkiOyj: RTRKS). The Corporation has used the marketing name Ruukki since 2004.DISTRIBUTIONOMX Nordic Exchange HelsinkiMain mediawww.ruukki.com