2007-08-01 08:01:01 CEST
2007-08-01 08:01:01 CEST
REGULATED INFORMATION
Rautaruukki - Company Announcement
RAUTARUUKKI'S NET SALES UP 20 PER CENT AND OPERATING PROFIT UP MORE THAN 70 PER CENT FOR JANUARY-JUNE, CONSTRUCTION CONTINUES TO GROW PROFITABLY
Rautaruukki Oyj Stock exchange release 1 August 2007 at 9.01am
RAUTARUUKKI'S NET SALES UP 20 PER CENT AND OPERATING PROFIT UP MORE THAN 70 PER
CENT FOR JANUARY-JUNE, CONSTRUCTION CONTINUES TO GROW PROFITABLY
Summary of the January-June 2007 results (comparable figures for Jan-Jun 2006)
- Net sales EUR 1,960 million (1,784, comparable 1,634), up 20 per cent on
comparable net sales
- Operating profit EUR 356 million (222, comparable 208), increase of 71 per
cent on comparable operating profit
- Profit before taxes EUR 353 million (237)
- Earnings per share (diluted) EUR 1.89 (1.33)
- Comparable net sales in 2007 are expected to develop in line with growth
targets set. Operating profit for 2007 is anticipated to markedly exceed the
comparative figure for last year.
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| KEY FIGURES | 2007 | 2006 | 2006 | 2006* |
| | Jan-Jun | Jan-Jun | Jan-Dec | Jan-Jun |
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| Net sales, EUR m | 1 960 | 1 784 | 3 682 | 1 634 |
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| Operating profit, EUR m | 356 | 222 | 529 | 208 |
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| Operating profit as % of net | 18.2 | 12.4 | 14.4 | 12.7 |
| sales | | | | |
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| Profit before taxes, EUR m | 353 | 237 | 635 | |
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| Earnings per share, diluted, | 1.89 | 1.33 | 3.65 | |
| EUR | | | | |
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| * The comparable figures exclude the Nordic Reinforcing units, which were |
| part of the Group until 31 July 2006. |
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January-June highlights
- Strong demand across Ruukki's core market area
- Profitable growth continued within construction especially in Russia and
Central Eastern Europe, total deliveries accounted for growing share of sales
- Continued good demand within the engineering industry for systems and
components, such as cabins and ready-to-install booms
- Prices of steel products strengthened and sales structure improved
President & CEO Sakari Tamminen:
- Net sales during the first six months of the year were up by 20 per cent and
operating profit by over 70 per cent compared to the same period last year. We
have seen steady strong profitability development during past quarters. This has
been one of our most important targets.
There was brisk construction activity during January-June and deliveries rose in
all markets, especially in Russia and Finland. Demand increased for total
deliveries within commercial and industrial construction and prices remained at
a good level. Our expansion projects in Russia, Romania, Ukraine and Poland are
progressing according to plan. When completed, these projects will strengthen
our delivery capability in these important, strongly growing construction
markets. We are also geographically expanding the sales network in Russia to
strengthen our position to enable us to benefit from strong growth there.
Already 40 per cent of our deliveries are supplied to outside Central Russia.
Also business profitability in Russia has further improved.
Order books remained strong in all Ruukki Engineering's customer segments.
Within the mechanical engineering industry, there was strong demand for
components in the lifting, handling and transportation equipment industry,
energy and marine and offshore industries. Whereas systems deliveries to
customers in the lifting, handling and transportation equipment industry earlier
consisted mostly of cabins for mobile machinery, orders are now increasing for
deliveries of ready-to-install booms for materials handling equipment. The
ongoing integration of acquisitions will create further potential to improve
deliveries and profitability.
Strong growth continued within steel products in our core market area. Stronger
prices of steel products and a change in the sales structure enhanced
profitability. Special steel products and direct deliveries to end customers
accounted for a marked increase in the share of total deliveries.
The good market in the Group's core market areas and in key customer industries
is expected to continue. Comparable net sales in 2007 are expected to develop in
line with growth targets set. Operating profit for 2007 is anticipated to
markedly exceed the comparative figure for last year.
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 six months
of the year on 1 August 2007 at 10.30am at corporate headquarters,
Suolakivenkatu 1, 00810 HELSINKI.
Webcast and conference call
The webcast and conference call in English for investors and analysts can be
viewed live on the company's website at www.ruukki.com/investors, today 1 August
2007 starting at 2pm Finnish time.
To attend the conference call, please call +44 (0) 20 7162 0025, password
Rautaruukki, about 5-10 minutes before the conference starts.
The encore replay can be heard until 4 August on +44 (0) 20 7031 4064, access
code: 758563.
The interim report for January-June 2007 may be viewed on the company's website
at www.ruukki.com/investors.
This release is unaudited.
Rautaruukki Oyj
Taina Kyllönen
VP Corporate Communications
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 23
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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