Rautaruukki raises EBIT target and expects continued growth in company's main market areas

Rautaruukki Oyj	Stock Exchange release        1 October 2008 at 10.55

Rautaruukki raises EBIT target and expects continued growth in company's 
main market areas

Rautaruukki is holding its annual Capital Market Day for investors and analysts
in Vaasa, Finland on 1-2 October 2008. Topics covered this year include the
company's main growth segments, actions to further improve operations and the
company's latest technology solutions. 

Highlights:
- EBIT target increased to 15 per cent (was 12 per cent)
- Focus on fastest growing businesses
- New operational excellence programme

-Our company's profitable growth is based on sustainable fundamentals.
Rautaruukki's revised EBIT target is to exceed 15 per cent instead of 12 per
cent as earlier. Efficient operations, strong growth segments, actions already
carried out to improve profitability and our new operational excellence
programme create the fundamentals for us to raise our EBIT target, says
Rautaruukki's President & CEO, Sakari Tamminen. 

Other financial targets and the company's dividend policy remain unchanged. 

Rautaruukki's management expects continued growth in the company's main market
areas, especially in Central Eastern and Eastern Europe. The company believes
the impact of the current general factors of uncertainty in the global economy
is likely to be less in its core market areas - the Nordic countries, Central
Eastern Europe and especially in Russia and Ukraine. 

Earnings forecast for 2008 unchanged

Comparable consolidated net sales growth during the current year is expected to
meet the target and exceed 10 per cent. Operating profit in 2008 is expected to
be higher than in 2007. 

Main focus on selected growth segments

Rautaruukki's divisions are focusing on growth in the following geographical
areas and business segments: 

- Ruukki Construction: non-residential construction market in Central Eastern
Europe and CIS countries. The division's rolling net sales for the 12 months
ending 30 June 2008 in the above business areas totalled EUR 518 million. 

- Ruukki Engineering: lifting, handling and transportation equipment industry
and machinery and equipment manufacturers in the energy industry. The
division's rolling net sales for the 12 months ending 30 June 2008 in these
business segments totalled EUR 461 million. 
 
- Ruukki Metals: special steels. The division's rolling net sales for the 12
months ending 30 June 2008 in the special steels business totalled EUR 534
million. 

Based on forecasts in customer industries, Rautaruukki estimates a compound
annual growth rate (CAGR) of 8-12 per cent in Ruukki Construction's Central
Eastern European market and 10-18 per cent in CIS countries between 2008 and
2011. The company estimates an annual market growth rate of 5-7 per cent in
Ruukki Engineering's lifting, handling and transportation equipment industry
and 7-11 per cent in the energy industry, and Ruukki Metals' special steel
market is expected to grow at an annual rate of 6-7 per cent over the same
period. 

Savings achieved by Ruukki United profitability improvement programme

Ruukki United, Rautaruukki's programme to harmonise and rationalise ways of
working, aims at cost savings and permanently freeing up capital employed
compared to the cost structure in 2004. 

The current status of the annual cost savings to be achieved by year-end 2008
is EUR 130 million (target: EUR 150 million) and freed up capital employed EUR
125 million (target: 150 million). Savings have been made mainly in the form of
more efficient sourcing and production and the divestment of non-core
businesses. 

New operational excellence programme

Rautaruukki is to launch a corporate-wide operational excellence programme,
”Boost”, which aims at further operational efficiency and at ensuring the
company retains its sustainable competitive edge and good profitability in the
future. The Boost programme aims at a EUR 150 million improvement in the
company's operating profit by year-end 2011, compared to 2008 level. 

The company will focus on the growing markets and long-term customer
relationships with growth potential. In addition, the company will launch new
products and technologies. The production network will be optimised by
improving supply chain management, plant capacity utilisation and sourcing. The
production plants will shorten lead times, improve productivity and quality,
automate bottlenecks and ramp up new investments. Work will continue on further
developing and improving the efficiency of business support functions. 

The company will continue to divest non-core businesses and to discontinue
unprofitable operations to further improve cost-efficiency. 

Capital Market Day material

The Capital Market Day presentation material in English will be available on
the company's website on 1 October at about 1:30pm Finnish time at
www.ruukki.com/investors 


FOR FURTHER INFORMATION, PLEASE CONTACT: 
Sakari Tamminen, President & CEO, tel. +358 20 592 9075 
Mikko Hietanen, CFO, tel. +358 20 592 9030 
Anne Pirilä, SVP, Corporate Communications and Investor Relations, tel. +358 20
592 8802 



Rautaruukki Corporation

Anne Pirilä 
SVP, Corporate Communications and Investor Relations 

Rautaruukki supplies metal-based components, systems and integrated systems to
the construction and engineering industries. The company has a wide selection
of metal products and services. Rautaruukki has operations in 25 countries and
employs 14,990 people. Net sales in 2007 totalled EUR 3.9 billion. The
company's share is quoted on the OMX Nordic Exchange Helsinki (Rautaruukki Oyj:
RTRKS). The Corporation uses the marketing name Ruukki. 

www.ruukki.com


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www.ruukki.com