Ruukki Group Oyj - Half Year financial report

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

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          | -2.3|  -3.9        | -4.3|  -7.0          -18.4
operations                     |     |              |     |
                               +-----+              +-----+
Profit for discontinued        |  0.0|   4.1 -100.0%|  0.0|  47.1 -100.0%   41.1
operations                     |     |              |     |
                               +-----+              +-----+
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 +358 (0)9 2313 9201

UK number +44 (0)20 7162 0077


RUUKKI GROUP PLC
Thomas Hoyer
CEO


For additional information, please contact:

Ruukki Group Plc
Thomas Hoyer, CEO, +358 (0)10 440 7000, thomas.hoyer@ruukkigroup.com
Kalle Lehtonen, General Manager: Finance, +358 (0)400 539 968,
kalle.lehtonen@ruukkigroup.com
Markus Kivimäki, General Manager: Corporate Affairs, +358 (0)50 3495 687,
markus.kivimaki@ruukkigroup.com

Investec Bank Plc
Stephen Cooper, +44 (0)20 7597 5104, stephen.cooper@investec.co.uk

RBC Capital Markets
Martin Eales, +44 (0)20 7653 4000, martin.eales@rbccm.com
Peter Barrett-Lennard, +44 (0)20 7653 4000, peter.barrett-lennard@rbccm.com

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

[HUG#1634148]

Attachments:

Ruukki_Group_Plc_Interim Report_Q2_2012.pdf