Rautaruukki expects to post clearly negative re...

Rautaruukki Corporation Stock Exchange Release 19 March 2009 at 11.15
am

Rautaruukki expects the Group to post a clearly negative result
before tax for the first quarter of 2009. Weaker than expected
earnings performance is attributable to continued extremely low
demand for steel products. During the first months of the year,
demand has also fallen as customers reduce high stockpiles, which in
turn has also resulted in weaker than expected price development for
steel products.


Prices of the main raw materials used in steel production are still
high, even though they are expected to fall significantly towards the
end of the year. The low capacity utilisation rate in steel
production considerably increases the fixed costs per unit of steel
produced. This in turn has weakened the profitability of the
company's steel business. The prevailing market conditions have not
yet given reason to re-start one of the two blast furnaces, shut down
temporarily in early December last year, at Rautaruukki's Raahe Steel
Works in Finland.

In its guidance given in February, the company expected comparable
net sales and operating profit for the first quarter of 2009 to fall
considerably short of those for the fourth quarter of 2008. The
results for the first quarter of 2009 will be disclosed on 23 April
2009, when the company will also review its near-term outlook.

For further information, please contact:

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


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 14,300 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.


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


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