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2008-11-06 08:30:00 CET 2008-11-06 08:30:37 CET REGULATED INFORMATION Ruukki Group Oyj - Company AnnouncementRUUKKI GROUP'S SAWMILL BUSINESS SEGMENT FACING INCREASED FOREIGN EXCHANGE RISKS IN ITS EXPORT SALESRuukki Group Plc, Stock Exchange Release, 6 November 2008 at 9:30 a.m. Ruukki Group's Sawmill Business segment facing increased foreign exchange risks in its export sales The export sales of Ruukki Group Plc's Sawmill Business segment to Japanese market has declined sharper than expected due to strong short-term change in yen exchange rate and due to price competition from Swedish competitors. The expected future yen denominated sales inflows have been hedged with currency forward agreements. The domestic sales have increased in relation to export sales and therefore the amount of open yen position has increased. Due to large fluctuation in Japanese yen exchange rate, the unrealised foreign exchange rate related to currency forwards has significantly increased. The realisation of the exchange rate risk is conditional upon the exchange rate development until 30 June 2009 as well as on the realised volume of export sales denominated in yen during that period. The open nominal net position of currency forward agreements were altogether EUR 18.0 million on 31 October 2008 (30 September 2008: EUR 16.2m), and the unrealised losses at fair value based on 5 November 2008 exchange rates were altogether EUR 3.9 million (30 September 2008: EUR 1.1m) when excluding the effect of commercial cash flows. In case the risks described above would be realised in full and the exchange rates would be at 5 November 2008 level, fourth quarter (1 Oct - 31 Dec 2008) operating profit (EBIT) would be negatively affected by about EUR 0.3 million and net finance income negatively affected by approximately EUR 2.5 million. On 30 September 2008 EUR 1.1 million unrealised foreign exchange losses have been recognised. Ruukki Group Plc does not apply hedging accounting as specified in IAS39. RUUKKI GROUP PLC Alwyn Smit Chairman of the Board and CEO Ruukki Group Plc's shares are listed on OMX Nordic Exchange Helsinki in which the shares of the Company are traded in the mid cap segment, in the industrials sector. For additional information, please contact: Alwyn Smit Chairman of the Board and CEO Ruukki Group Plc Telephone +41 7960 19094 www.ruukkigroup.fi Antti Kivimaa Deputy CEO, domestic wood processing businesses Ruukki Group Plc Telephone +358 400 501 780 www.ruukkigroup.fi This stock exchange release is based on a translation into English of a document written in Finnish. In case of any discrepancies, inconsistencies or inaccuracies, the Finnish version of the release shall prevail. |
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