Rautaruukki - Company Announcement

Rautaruukki revises guidance for the whole of 2012 - average prices and delivery volumes in the steel business weaker than expected in an uncertain market environment

Rautaruukki Corporation Stock exchange release 27 September 2012 at 9.00am EEST

Rautaruukki (Ruukki) revises its guidance for 2012. Instead of growing about 5
per cent as estimated earlier, net sales are now estimated to remain at the same
level as the previous year. Comparable operating profit for the second half of
the year is now estimated to remain at the same level as for the first half.
This means negative comparable operating profit for the whole year. It was
earlier estimated that comparable operating profit for the whole year would be
at the same level as in 2011. Cash flow for the whole year is expected to
improve on the situation at the end of June and to be clearly better than the
previous year.

Ruukki's outlook for 2012 has changed in respect of the steel business. Based on
the market outlook at the end of the second quarter, average selling prices of
steel products were expected to remain at the same level or to show a moderate
rise. A fall in the global market prices of raw materials has put downward
pressure also on the prices of steel products and decreased demand. In a very
uncertain market environment and while the costs of raw materials are falling,
customers have destocked and pushed back their orders. This has been clearly
reflected in weaker ordering activity than earlier, especially as regards
standard products. Under the circumstances, Ruukki estimates that its net sales
in 2012 will remain at the same level as in the previous year. Net sales were
earlier estimated to grow about 5 per cent.

There is typically a delay of around one quarter before lower raw material
prices are reflected in Ruukki's production costs. This is because of contracts
signed with raw materials suppliers and the normal rotation of raw material
stocks. The delay referred to above and the decline in the market prices of
steel products mean that Ruukki's profitability will be below that forecast
earlier. Comparable operating profit for the second half of the year is now
estimated to remain at the same level as for the first half. This means negative
comparable operating profit for the whole year. It was earlier estimated that
comparable operating profit for the whole year would be at the same level as in
2011.

The efficiency projects initiated earlier in the year in the steel and
construction businesses have progressed to plan.

Earlier guidance:
Net sales in 2012 are estimated to grow about 5 per cent. Comparable operating
profit is estimated to be at the same level as in 2011.

Revised guidance:
Net sales in 2012 are estimated to remain at the same level as the previous
year. Comparable operating profit for the second half of the year is now
estimated to remain at the same level as for the first half. This means negative
comparable operating profit for the whole year. Cash flow for the whole year is
expected to improve on the situation at the end of June and to be clearly better
than the previous year.

Rautaruukki's interim report for January-September 2012 will be published on
Tuesday 23 October 2012 at around 9am EEST.

For further information, please contact:
Markku Honkasalo, CFO, tel. +358 592 8840

Rautaruukki Corporation
Taina Kyllönen
SVP, Marketing and Corporate Communications

Ruukki provides its customers with energy-efficient steel solutions for better
living, working and moving. Ruukki operates in some 30 countries and employs
around 11,800 people. Net sales in 2011 totalled EUR 2.8 billion. The company's
share is quoted on NASDAQ OMX Helsinki (Rautaruukki Oyj: RTRKS).

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


[HUG#1643932]