|
|||
2007-04-25 08:01:00 CEST 2007-04-25 08:01:00 CEST REGULATED INFORMATION Rautaruukki - Company AnnouncementRAUTARUUKKI'S FIRST QUARTER OPERATING PROFIT ALMOST DOUBLED, GROWTH DRIVEN BY EASTERN EUROPE AND RUSSIARautaruukki Oyj Stock exchange release 25 April 2007 at 9.01am RAUTARUUKKI'S FIRST QUARTER OPERATING PROFIT ALMOST DOUBLED, GROWTH DRIVEN BY EASTERN EUROPE AND RUSSIA Summary of first quarter 2007 results (comparable figures for Q1/2006) - Net sales EUR 950 million (856, comparable 786), increase of 21 per cent on comparable net sales - Operating profit EUR 178 million (95, comparable 89) - Profit before taxes EUR 177 million (101) - Earnings per share (diluted) EUR 0.95 (0.56) - Comparative 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. -------------------------------------------------------------------------------- | KEY FIGURES | 2007 | 2006 | 2006 | 2006* | | | Jan-Mar | Jan-Mar | Jan-Dec | Jan-Mar | -------------------------------------------------------------------------------- | Net sales, EUR m | 950 | 856 | 3 682 | 786 | -------------------------------------------------------------------------------- | Operating profit, EUR m | 178 | 95 | 529 | 89 | -------------------------------------------------------------------------------- | Operating profit as % of net | 18.7 | 11.1 | 14.4 | 11.3 | | sales | | | | | -------------------------------------------------------------------------------- | Profit before taxes, EUR m | 177 | 101 | 635 | | -------------------------------------------------------------------------------- | Earnings per share (diluted), | 0.95 | 0.56 | 3.65 | | | EUR | | | | | -------------------------------------------------------------------------------- | * The comparable figures exclude the Nordic Reinforcing units, which were | | part of the Group until 31 July 2006. | -------------------------------------------------------------------------------- First quarter highlights - Strong demand across the market area, with Eastern Europe and Russia in particular speeding up growth - Construction business driving profitable growth, net sales around 60 per cent up and profitability significantly improved - Strong demand for components in the engineering industry, especially in the lifting, handling and transportation equipment industry - Work progressed on specialisation of steel products and on development of sales structures and distribution channels. Prices for steel products firmed up and profitability noticeably improved. President & CEO Sakari Tamminen: - Demand in our core market area remained strong during the first quarter of 2007. Exceptionally brisk construction activity was witnessed for the time of year and deliveries were up in all markets. Demand for components in the engineering industry was especially strong in the lifting, handling and transportation equipment, energy and marine & offshore industries. Demand for steel products held up well in our key market areas. Acquisitions in recent years have provided us with an excellent platform to capitalise on the potential in the Eastern Europe construction market. To strengthen our delivery capability, we have launched expansion projects in Ukraine, Romania and Poland. In Russia, we plan to triple our steel structure and component production capacity over the next three years. Investments of around EUR 30 million in machinery and equipment are aimed at achieving profitable growth in net sales of some EUR 200 million. We have further strengthened our position as a supplier within the engineering industry, especially in the lifting, handling and transportation equipment industry. In January, we completed acquisition of the Swedish company Omeo Mekaniska Verkstad AB, which supplies ready-to-install booms. In April, after the review period, we announced the purchase of a majority holding in Hungarian component manufacturer Aprítógépqyár Zrt. These acquisitions add to our component and systems deliveries, especially in ready-to-install booms, and bring us significant new customers in Central Europe. In steel products, we made further progress with developing the sales structure, distribution channels and product specialisation. In the Nordic countries, we are using our own service centres and prefabrication services to take our business forward. In Central Europe, our focus is on deliveries of special products. Direct deliveries to end customers have increased clearly. The market in the Group's core market areas and in key customer industries is expected to continue to hold up well. Comparative 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 first quarter results on 25 April 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 25 April 2007 starting at 2pm Finnish time. To attend the conference call, please call the following number +44 (0) 20 7162 0125, password Rautaruukki, about 5-10 minutes before the conference starts. The encore replay can be heard until 28 April on +44 (0) 20 7031 4064, access code: 746260. The interim report for the first quarter of 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 13,000 people. Net sales in 2006 totalled EUR 3.7 billion. The company's share is quoted on the Helsinki Exchanges (Rautaruukki Oyj: RTRKS). The corporation has used the marketing name Ruukki since 2004. www.ruukki.com DISTRIBUTION: Helsinki Exchanges Main media www.ruukki.com |
|||
|