Rautaruukki Corporation's Interim Report for Ja...

Rautaruukki Corporation Interim report 23 April 2009 at 12.00

Summary of results for first quarter of 2009 (reference figure for
Q1/2008)
- Consolidated net sales decreased to EUR 506 million (939).
- Consolidated negative operating profit of -EUR 113 million (143).
- Gearing ratio remained low at 7.4 per cent (-3.7).
- Return on capital employed (rolling 12 months) was 14.5 per cent
(28.9).
- Per share earnings were -EUR 0.65 (0.77).
- The result before taxes for the second quarter is expected to
remain clearly negative, although to show some improvement on the
result for the first quarter.
- The company considers that it has the potential to achieve a
positive result before taxes during the second half of the year.


+-----------------------------------------------------------------+
| KEY FIGURES                        | Q1/2009 | Q1/2008 | 2008   |
|------------------------------------+---------+---------+--------|
| Net sales, EUR m                   | 506     | 939     | 3 851  |
|------------------------------------+---------+---------+--------|
| Operating profit, EUR m            | -113    | 143     | 568    |
|------------------------------------+---------+---------+--------|
| Operating profit as % of net sales | -22.2   | 15.2    | 14.7   |
|------------------------------------+---------+---------+--------|
| Result before taxes, EUR m         | -122    | 140     | 548    |
|------------------------------------+---------+---------+--------|
| Earnings per share, EUR            | -0.65   | 0.77    | 2.93   |
|------------------------------------+---------+---------+--------|
| Return on capital employed, %      | 14.5    | 28.9    | 25.6   |
| (rolling 12 mths)                  |         |         |        |
|------------------------------------+---------+---------+--------|
| Gearing ratio, %                   | 7.4     | -3.7    | 7.9    |
|------------------------------------+---------+---------+--------|
| Personnel, average                 | 13 460  | 14 644  | 14 953 |
+-----------------------------------------------------------------+


First quarter of 2009 in brief:

- Demand for steel products fell sharply in all customer industries
and markets.
- Growing uncertainty impacted on customers' investment decisions and
the poor functioning of the financial markets was reflected in the
difficulty of customers in arranging funding, which in turn weakened
sales, especially of construction solutions.
- Demand weakened in the engineering industry, especially in the
lifting, handling and transportation equipment industry. High stock
levels throughout the supply chain weakened demand.
- Good demand continued from equipment manufacturers in the energy
industry both in wind and diesel power plants.
- The weakening of a number of sales currencies against the euro
reduced consolidated net sales.
- The company's cash flow was good and its financial position
remained strong.
- The impact on costs of operational efficiency actions and
adjustment measures under way are expected to be seen during the
second half of the year.

President & CEO Sakari Tamminen:

"Market conditions remained extremely difficult throughout the first
quarter in all our customer industries.

Poor earnings performance during the first quarter was due not only
to weak demand, but also to the low capacity utilisation rate in
steel production. Low production capacity utilisation had an impact
of around EUR 90 million on costs. Also the unwinding of stock levels
produced at high raw material prices weakened our profitability. Also
the impact of weakened currencies in countries in which the company
operates was also reflected in net sales development.

We reacted to weak market conditions by initiating measures to adjust
operations and improve efficiency corporate-wide. Only one of our two
blast furnaces was operative in steel production and activities and
costs in all divisions and corporate management and business support
functions were adjusted to market conditions. We also continued with
actions under our operational excellence programme Boost, which is
aimed at helping us to achieve permanent long-term improvements in
efficiency and profitability. Actions already initiated did not yet
have any material impact on the result for the first quarter, but
will lighten our cost structure from the second quarter onwards. The
Boost programme and other adjustment measures already under way are
expected to deliver cost savings of more than 80 million euros for
the whole of 2009.

In April, after the report period, we announced that plans are under
way to bring the modernisation of blast furnace 1 at the Raahe Works
in Finland forward by three months so that work starts in April 2010.
Even though we do not yet see any clear signs of a market recovery in
the short term, we are restarting the idle blast furnace to prepare
for disruption to production caused by downtime during the
modernisation project. Restarting blast furnace 1 is justified also
to safeguard customer deliveries. Restarting the blast furnace will
also increase the steel production capacity utilisation rate and thus
clearly improve our cost efficiency during the second half of the
year," says President & CEO Sakari Tamminen.

The company expects net sales for the second quarter to be similar to
those for the first quarter. The result before taxes for the second
quarter is expected to remain clearly negative, although to show some
improvement on the result for the first quarter.

Based on efficiency actions and adjustment measures already under
way, estimated lower costs of raw materials used in steel production
and improved cost efficiency in steel production, the company
considers that it has the potential to achieve a positive result
before taxes during the second half of the year.


FOR FURTHER INFORMATION, PLEASE CONTACT:

Sakari Tamminen, President & CEO, tel. [phone]
Mikko Hietanen, CFO, tel. [phone]


Press conference on the interim report on Thursday 23 April at 1.30pm

A press conference for analysts and the media, in Finnish, will be
held on Thursday 23 April at 1.30pm at Ruukki, Suolakivenkatu 1,
00810 Helsinki.

The English webcast and conference call for investors and analysts
will begin at 4pm Finnish time and can be viewed live on the
company's website at www.ruukki.com/investors. A replay of the
webcast can be viewed on the same site from about 8pm Finnish time.

To attend the conference call, please call the number below 5-10
minutes before the conference begins:
[phone]
Password: Rautaruukki

A recording of the conference call can be heard until 26 April 2009
at the number below:
[phone]
Access code: 832120


Rautaruukki Corporation
Anne Pirilä
SVP, Corporate Communications and Investor Relations

Rautaruukki supplies metal-based components, systems and integrated
systems to the construction and engineering industries. The company
has a wide selection of metal products and services. Rautaruukki has
operations in 26 countries and employs 13,300 people. Net sales in
2008 totalled EUR 3.9 billion. The company's share is quoted on
NASDAQ OMX Helsinki (Rautaruukki Oyj: RTRKS). The Corporation uses
the marketing name Ruukki. www.ruukki.com


DISTRIBUTION:
NASDAQ OMX Helsinki
Main media
www.ruukki.com


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