2007-10-24 08:01:00 CEST
2007-10-24 08:01:00 CEST
REGULATED INFORMATION
Rautaruukki - Company Announcement
RAUTARUUKKI'S OPERATING PROFIT INCREASED BY 49 PER CENT IN JANUARY-SEPTEMBER, GOOD MARKET SITUATION EXPECTED TO CONTINUE
Rautaruukki Oyj Stock exchange announcement 24 October 2007 at 9.01
RAUTARUUKKI'S OPERATING PROFIT INCREASED BY 49 PER CENT IN JANUARY-SEPTEMBER,
GOOD MARKET SITUATION EXPECTED TO CONTINUE
Summary of the January-September results (comparable figures for Jan-Sept 2006)
- Net sales EUR 2 895 million (2 669, comparable 2 502), up 16 per cent on
comparable net sales
- Operating profit EUR 518 million (362, comparable 348), increase of 49 per
cent on comparable operating profit
- Earnings per share (diluted) EUR 2.74 (2.09)
- Operating profit for 2007 will markedly exceed the comparative figure for last
year. The good market situation in the company's customer industries is expected
to continue. This will form a good platform for Rautaruukki in 2008.
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| KEY FIGURES | Q3/07 | Q3/06 | Q1-Q3/ | Q1-Q3/ | 2006 | 2006* |
| | | | 07 | 06 | | |
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| Net sales, EUR m | 935 | 885 | 2 895 | 2 669 | 3 682 | 2 502 |
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| Operating profit, EUR m | 162 | 140 | 518 | 362 | 529 | 348 |
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| Operating profit as % of | 17.3 | 15.9 | 17.9 | 13.6 | 14.4 | 13.9 |
| net sales | | | | | | |
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| Profit before taxes, EUR | 159 | 141 | 512 | 378 | 635 | |
| m | | | | | | |
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| Earnings per share, | 0.85 | 0.76 | 2.74 | 2.09 | 3.65 | |
| diluted, EUR | | | | | | |
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| Return on capital | | | 33.6 | 25.3 | 30.1 | |
| employed**, % | | | | | | |
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| Gearing ratio, % | | | 10.0 | 25.3 | 1.2 | |
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| Personnel on average | | | 14 864 | 13 063 | 13 121 | |
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| * The comparable figures exclude the Nordic Reinforcing units, which were |
| part of the Group until 31 July 2006. |
| **Based on the previous 12 months |
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January-September highlights
- Continued strong demand across Ruukki's core market area and in main customer
industries
- Strong demand and deliveries continued within building construction in the
Nordic countries, Russia and Central Eastern Europe
- Brisk demand and deliveries at good level in infrastructure construction
- Ruukki Construction almost doubled operating profit to EUR 117 million
- Strong order books in all engineering customer sectors
- Acquisitions have given Rautaruukki major new customers in the lifting,
handling and transportation industry and expanded its product range
- Special steel products continued to form an increasing share of sales
- Strong organic business growth, especially in Central Eastern Europe and
Russia, increased Group's headcount by 12 per cent year-on-year
President & CEO Sakari Tamminen comments on January-September results:
- Our net sales increased by 16 per cent and operating profit by 49 per cent on
a comparable basis over the same period last year. We have seen steady, strong
profitability development during past quarters. In line with our strategy we
have successfully increased the share of the solutions businesses - Ruukki
Construction and Ruukki Engineering - of our net sales. We also aim to increase
the share of special products of Ruukki Metals division's net sales from the
current figure of 24 per cent to 40 per cent by the end of 2010.
There was continued brisk construction activity during January-September and
deliveries increased in all markets, especially in the Nordic countries, Russia
and Central Eastern Europe. Strong demand continued both in office and
commercial construction and in infrastructure construction. Most of our
deliveries focused on large transport infrastructure and harbour projects
already under way in Finland, the Nordic countries and Russia. Our investments
to increase production capacity in Central Eastern Europe, Finland and Russia
progress as planned and will strengthen our delivery capability in our fast
growing core market areas.
Order books remained strong in all Ruukki Engineering division's customer
sectors. There was further growth in demand in the wind turbine industry. Demand
in the paper and wood processing industry as well as shipbuilding and offshore
sectors has remained strong in Europe. Hungarian company AGJ, acquired in May,
has given us major new customers within the lifting, handling and transportation
industry and enabled us to expand our product range. Integration of acquisitions
into Ruukki Engineering is under way and we expect the performance of these
units to improve during the course of next year.
There was continued strong growth within steel products in our core market area.
Profitability improved as a result of increased sales prices and a change in the
sales structure. Special steel products and direct deliveries to end-customers
accounted for a marked increase in the share of deliveries. The investment
completed in September at the Raahe Works will further increase the production
capacity of special steels.
Comparable net sales in 2007 are expected to develop in line with growth targets
set. Operating profit for 2007 will markedly exceed the comparative figure for
last year. We expect the good market situation in the company's customer
industries to continue. This will form a good platform for Rautaruukki in 2008.
Further information is available from:
Sakari Tamminen, President & CEO, tel.
+358 20 592 9075
Mikko Hietanen, CFO, tel. +358 20 592 9030
Press conference
Rautaruukki will hold a press conference on the results for the first nine
months of the year on 24 October 2007 at 10.30am Finnish time at corporate
headquarters, Suolakivenkatu 1, 00810 Helsinki.
Webcast and conference call
The webcast and conference call for investors and analysts can be viewed live on
the company's website at www.ruukki.com/investors, today 24 October starting at
14.00 Finnish time.
To attend the conference call, please call +44 (0) 20 7162 0125, password:
Rautaruukki, about 5-10 minutes before the conference starts. The encore replay
can be heard until 27 October on +44 (0) 20 7031 4064, access code: 769039.
The interim report for January-September 2007 may be viewed on the company's
website at www.ruukki.com/investors.
This release is unaudited.
Rautaruukki Oyj
Anne Pirilä
SVP, Corporate Communications and Investor Relations
Rautaruukki supplies metal-based components, systems and integrated systems to
the construction and mechanical engineering industries. The company has a wide
selection of metal products and services. Rautaruukki has operations in 24
countries and employs 14,500 people. Net sales in 2006 totalled EUR 3.7 billion.
The company's share is quoted on the OMX Nordic Exchange Helsinki (Rautaruukki
Oyj: RTRKS). The Corporation has used the marketing name Ruukki since 2004.
www.ruukki.com
DISTRIBUTION
OMX Nordic Exchange Helsinki
Main media
www.ruukki.com
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