Rautaruukki - Company Announcement

Rautaruukki expects to post clearly negative result for first quarter of 2009 due to weak demand for steel products

Rautaruukki Corporation Stock Exchange Release 19 March 2009 at 11.15 am

Rautaruukki expects to post clearly negative result for first quarter of 2009
due to weak demand for steel products 

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. +358 20 592 9075
Mikko Hietanen, CFO, tel. +358 20 592 9030

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
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www.ruukki.com