RUUKKI GROUP PLC'S Q2 INTERIM REPORT FOR 1 APRI...

07:00 London, 09:00 Helsinki, 16 August 2012 - Ruukki Group Plc ("Ruukki" or "the Company") (LSE: RKKI, OMX: RUG1V) Interim Report

RUUKKI GROUP PLC'S Q2 INTERIM REPORT FOR 1 APRIL - 30 JUNE 2012

HIGHLIGHTS:

- Outlook for 2012 improved mainly due to more stable market conditions
- Production decreased by 20.1% to 74,181 (Q2/2011: 92,849) tonnes due to Eskom buyback programme
- EBITDA increased by 132.7% to EUR 3.9 (Q2/2011: 1.7) million and the EBITDA margin was 12.5%    
 (Q2/2011: 3.8%)
- EBIT was EUR -2.6 (Q2/2011: -5.4) million
- Profit for continuing operations totalled EUR -2.3 (Q2/2011: -3.9) million
- Sales from processed products decreased by 59.0% to 12,767 (Q2/2011: 31,148) tonnes
- Revenue decreased by 29.7% to EUR 31.3 (Q2/2011: 44.5) million
- Cash flow from operations was EUR 13.5 (Q2/2011: -5.8) million and liquid funds at 30 June were
 EUR 45.0 (30 June 2011: 81.8) (31 March 2012: 65.1) million

KEY FIGURES (EUR million)	Q2/12	Q2/11	Change	H1/12	H1/11	Change	FY/11
Revenue	31.3	44.5	-29.7%	78.0	79.3	-1.6%	159.1
EBITDA	3.9	1.7	132.7%	6.7	5.1	30.4%	1.4
EBITDA margin	12.5%	3.8%		8.6%	6.5%		0.9%
EBIT	-2.6	-5.4		-6.8	-9.0		-26.5
EBIT margin	-8.4%	-12.1%		-8.7%	-11.3%		-16.6%
Earnings before taxes	-2.5	-5.9		-5.1	-9.8		-25.4
Earnings margin	-8.1%	-13.2%		-6.5%	-12.3%		-16.0%
Profit for continuing operations	-2.3	-3.9		-4.3	-7.0		-18.4
Profit for discontinued operations	0.0	4.1	-100.0%	0.0	47.1	-100.0%	41.1
Profit	-2.3	0.3		-4.3	40.1		22.7
Earnings per share, basic, EUR	-0.01	0.00		-0.01	0.17		0.10

Continuing operations include the Speciality Alloys and the FerroAlloys business segments and unallocated items that consist of Group headquarters and other Group companies, which do not have significant business operations. Discontinued operations include the house building, pallet and sawmill businesses which were divested in 2011.

Commenting on the second quarter results, Thomas Hoyer, CEO, said:

"I am pleased to report an improved underlying financial performance by the Group for the second quarter and the first half of 2012 despite the ongoing difficult market conditions. The Group's increased focus on niche, higher margin speciality alloy products is starting to show results. Ruukki is weathering the very challenging market conditions well and this demonstrates the robustness of our business model, placing us in a strong position for when the markets begin to recover.

We were cash flow positive at the operating level and posted a strong increase in EBITDA in spite of the decrease in revenue and realised sales prices remaining similar quarter on quarter and year on year. The main contributors for the better profitability were improved cost efficiency and favourable exchange rates. Group production was lower due to bad weather conditions in Turkey and our participation in the Eskom electricity buyback programme in South Africa, which saw the majority of the furnaces at Mogale suspend production for most of second quarter. This programme has now finished and the restart of furnaces has commenced.

Looking ahead we expect to improve our full year financial performance as we anticipate market conditions to remain relatively stable. We continue to monitor market conditions closely and are prepared to adjust our production levels and product mix accordingly. In addition to seasonal market slowdown during European summer our production volumes for Q3 will be impacted by the annual maintenance shutdowns at our processing facilities in South Africa and Germany.

We remain focused on growth as we believe the long-term fundamentals for the business are attractive. The recent acquisition of EWW provided us with a strong position as one of the leading producers of speciality alloy products used by various industries. Our growth initiatives are targeted to further strengthen the company's position in this high value add niche market."

2012 outlook

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.

The Board has updated the outlook for the Company's financial performance for 2012. 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.

The previous outlook, published in the first quarter interim results on 10 May 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. The ferroalloy market is expected to continue to be volatile during the year. The Group is preparing for significant price fluctuations and
will continue to adapt its productions levels accordingly. At Mogale, part of the FerroAlloys division, the decision has been taken to put majority of furnaces on care and maintenance for the first half of the year. This decision will be reviewed during the second quarter. The market for speciality alloy products is estimated to be more stable, however, uncertainty remains in 2012 too. In light of this and until the market for its products improve, the Group expects its financial performance for the full year 2012 to be comparable to
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.

Disclosure procedure

Ruukki follows the disclosure procedure enabled by Standard 5.2b published by the Finnish Financial Supervision Authority, and hereby publishes its Q2 Interim Report enclosed to this stock exchange release. The Q2 Interim Report is attached to this release and is also available on the Company's website at www.ruukkigroup.com.

Investor Conference Call

Management will host an investor conference call in English on 16 August 2012 at 12.00 Finnish time, 10.00 UK time. Please dial-in at least 10 minutes beforehand, quoting the reference: 921212.

Finnish number [phone]

UK number [phone]


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
Stephen Cooper, [phone], [e-mail]

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

Financial reports and other investor information are available on the Company's website: www.ruukkigroup.com

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

Ruukki_Group_Plc_Interim Report_Q2_2012

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Source: Ruukki Group via Thomson Reuters ONE

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