RUUKKI GROUP PLC'S BOARD UPDATES ITS OUTLOOK FO...

07:00 London, 09:00 Helsinki, 7 November 2012 - Ruukki Group Plc, Stock Exchange Release

RUUKKI GROUP PLC'S BOARD UPDATES ITS OUTLOOK FOR 2012

Ruukki Group Plc's ("Ruukki" or the "Company") (LSE: RKKI, OMX: RUG1V) Board of Directors has updated its outlook for the Company's financial performance in 2012.

The global economic outlook for the coming quarter is uncertain as the Eurozone crisis continues and demand for commodities remains weak. After a period of very high fluctuations on the ferroalloy market it is now expected to be less volatile going forward but with prices continuing at relatively low levels. The market for higher value speciality products is expected to be more positive and the Group will continue to optimise its production levels and product mix accordingly.  

The Board has updated the outlook for the Company's financial performance for 2012. Ruukki still expects its financial performance for the full year 2012 to be better than in 2011 because of more stable market conditions, improved cost efficiency across the operations, and favourable exchange rates. Based on the view that prices of the Company's main products will slightly improve in the mid-term, a decision has been taken to focus on disciplined pricing of products. This is expected to result in an increase in finished goods inventory levels, and will thereby have a negative impact on revenues in the last quarter of 2012. Therefore, Ruukki now expects revenue for the full year 2012 to be lower than in 2011.

Fluctuations of exchange rates between the Euro, the South African Rand, the Turkish Lira and the US Dollar can significantly impact the Company's financial performance.

The previous outlook, published in the second quarter interim results on 16 August 2012, was:

The global economic outlook for 2012 is uncertain as the Eurozone crisis continues and demand for commodities, primarily driven by Chinese consumption, remains weak. After a period of very high fluctuations on the ferroalloy market it is now expected to be less volatile going forward. The Group remains prepared for price fluctuations and will continue to adapt its production levels and product mix accordingly. The market for speciality alloy products is estimated to be more stable, although some uncertainty remains.

Ruukki expects its revenue for the full year 2012 to be in line with 2011 and the Company's financial performance for the full year 2012 to be better than 2011 because of more stable market conditions, improved cost efficiency across the operations and favourable exchange rates. Due to the seasonal nature of the business, the Company's performance for Q3 2012 is not expected to be as positive as Q2 2012.

Fluctuations of exchange rates between the Euro, the South African Rand, the Turkish Lira and the US Dollar can significantly impact the Company's financial performance.

RUUKKI GROUP PLC
Thomas Hoyer
CEO


For additional information, please contact:

Ruukki Group Plc
Thomas Hoyer, CEO, [phone], [e-mail]
Kalle Lehtonen, General Manager: Finance, [phone], [e-mail]
Markus Kivimäki, General Manager: Corporate Affairs, [phone],
[e-mail]

Investec Bank Plc
Neil Elliot, [phone], [e-mail]
George Price, [phone], [e-mail]

RBC Capital Markets
Martin Eales, [phone], [e-mail]
Peter Barrett-Lennard, [phone], [e-mail]


Ruukki Group is a chrome mining and minerals producer focused on delivering sustainable growth with a speciality alloys business in southern Europe and a ferro alloys business in southern Africa. The Company is listed on NASDAQ OMX Helsinki (RUG1V) and the Main Market of the London Stock Exchange (RKKI).
www.ruukkigroup.com

Distribution:
NASDAQ OMX Helsinki
London Stock Exchange
main media
www.ruukkigroup.com

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Source: Ruukki Group via Thomson Reuters ONE

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