Rautaruukki Corporation Financial statement bulletin 2011: Net sales grew 16 per cent and cash flow improved. Dividend proposal of EUR 0.50 per share.

Rautaruukki Corporation Financial statement bulletin   1 February 2012 at 9am
EET

October-December 2011 (Q4/2010)
- Cash flow from operating activities was EUR 163 million (23)
- Order intake was up 1 per cent at EUR 651 million (647)
- Comparable net sales were up 12 per cent at EUR 718 million (641)
- Comparable operating profit was -EUR 40 million (-5), equating to -5.6 per
cent of net sales
- Comparable result before taxes was -EUR 50 million (-12), equating to -7.0 per
cent of net sales

January-December 2011 (2010)
- Cash flow from operating activities was EUR 114 million (-64)
- Order intake was up 15 per cent at EUR 2,675 million (2,326)
- Comparable net sales were up 16 per cent at EUR 2,797 million (2,403)
- Comparable operating profit was EUR 56 million (38), equating to 2 per cent of
net sales
- Comparable result before taxes was EUR 22 million (8), equating to 0.8 per
cent of net sales

Dividend proposal
The Board of Directors proposes payment of a dividend of EUR 0.50 per share
(0.60), to make a total dividend payout of EUR 69 million (83).

Estimate of the financial outlook for 2012
Net sales in 2012 are estimated to grow about 5 per cent. Comparable operating
profit is estimated to improve compared to 2011.

KEY FIGURES
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                                               Q4/11  Q4/10   2011   2010
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Comparable figures

Comparable net sales, EUR m                      718    641  2 797  2 403

Comparable operating profit, EUR m               -40     -5     56     38

Comparable operating profit
as % of net sales                               -5.6   -0.7    2.0    1.6

Comparable result before
income tax, EUR m                                -50    -12     22      8



Reported figures

Reported net sales, EUR m                        718    641  2 798  2 415

Reported operating profit, EUR m                 -47     -3     22    -12

Reported result before
income tax, EUR m                                -56    -11    -12    -74



Net cash from operating activities, EUR m        163     23    114    -64

Net cash before financing activities, EUR m      126    -19    -57   -226

Earnings per share, EUR                        -0.30  -0.21  -0.07  -0.57

Dividend per share, EUR                                      0.50*   0.60

Return on capital employed, %                                  1.3   -0.3

Gearing ratio, %                                              60.4   44.7

Equity ratio, %                                               48.5   55.3

Personnel on average                          11 493 11 384 11 821 11 693
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* Board of Directors' proposal

President & CEO Sakari Tamminen:
The past year was strongly divided into two. After a good start to the year,
weakened demand followed during the summer due to the difficulties facing some
economies in Europe. These changes in the business environment were reflected in
Ruukki's business so that after a very good second quarter, the second half of
the year was difficult, especially in our steel business. The capacity
utilisation rate of the entire steel industry in Europe was at a level of around
75 per cent during the second half of the year and also the operating rate of
our own steel business was low at about 80 per cent. On top of this, the
profitability of orders for steel products was lower than normal, especially in
late summer and early autumn. Costs of raw materials for steel were higher than
a year earlier, but, however, began to decrease towards the end of the year. The
business environment in the construction and engineering businesses remained
better than it did in steel products throughout the year, even though a return
to a faster growth track was slowed down in part by market uncertainty. It
seemed the uncertainty in the business environment had levelled off at the end
of the year, and, for example, destocking which took place in the steel industry
was reflected in the decline in prices for steel products levelling off.

Ruukki's profitability improved year on year despite a weakening of the business
environment and a weak end to the year. The unprofitability of the steel
business burdened the latter part of the year. Weak profitability of the steel
business was due to the low utilisation rate and lower price level of orders in
the wake of difficult market conditions, as well as to persistently high raw
material costs. During the year, we particularly focused on improving the
profitability base of our solutions businesses - construction and engineering.
Indeed, there was a clear improvement totalling EUR 63 million in operating
profit of the solutions businesses and the starting point for 2012 is clearly
better than a year ago. However, the solutions businesses were still slightly
unprofitable and profitability must clearly be further improved. In the latter
part of the year, our priority was to strengthen cash flow and reduce gearing.
Cash flow in the last quarter was good, especially with the successful freeing
up of working capital. Gearing decreased to 60 per cent, which is in line with
our long-term target level. The focus on cash flow and related destocking was
partly reflected in weaker profitability in the steel business.

During the past year, we made some progress towards achieving our strategic
targets: the share of net sales of the emerging markets rose as sales grew in
Eastern Europe, likewise the relative shares of the solutions businesses and
special steels also rose. Later in the year, growth in the share of special
steels slowed down compared to the beginning of the year due, among other
things, to a decline in demand from China, which turned out to be temporary.

Our order intake was up by around 15 per cent year on year. However, orders
during the fourth quarter were about at the same level as a year earlier. In the
construction business, new orders in residential construction showed the
clearest growth in all market areas, with particularly strong growth in Finland
and Poland. Orders in commercial and industrial construction increased in Russia
in concept buildings and orders in Finland also showed good growth.
Infrastructure construction continued at a good level. In the engineering
business, order flows were good, especially in mining industry equipment
manufacturing and materials handling equipment. The same demand had a positive
impact also on orders in the steel business. Sales of special steel products
developed well in our new market areas, especially in South Africa and Turkey.

Order flow in service centres within the steel business remained good also
during the latter part of the year. Mill orders decreased during the third
quarter and remained at the same level until the end of the fourth quarter.
Signs of a slight improvement were seen at the very end of the year.

Even though there is still clear market uncertainty, some degree of levelling
off can, however, be noticed. Our starting point for 2012 is relatively good.
The conditions to improve the profitability of the solutions businesses,
especially in the construction business, are clearly better than a year ago.
Also, with the exception of the unit in China and one individual project, the
conditions for profitability of the engineering business are good. In the steel
business, market inventories are in balance. Prices of steel products have
levelled off and partly slightly risen. We have kept our fixed costs the same
for three years, despite strong growth in our net sales. However, we still have
much to do as regards cost competitiveness and increasing the flexibility of
operations. We aim to strengthen cash flow also by improving working capital
efficiency. Capital expenditure in 2012 will be in the region of around EUR 100
million, which is clearly below the figure for last year and consolidated annual
depreciation.

Net sales in 2012 are estimated to grow about 5 per cent. Comparable operating
profit is estimated to improve compared to 2011.

Rautaruukki Corporation's full financial statement bulletin for 2011 is attached
to this bulletin.

For further information, please contact:
Sakari Tamminen, President & CEO, tel. +358 20 592 9075
Markku Honkasalo, CFO, tel. +358 20 592 8840

Rautaruukki will host two news conferences on Wednesday 1 February at Event
Arena Bank, Unioninkatu 22, Helsinki (Cabinet 8).
A press conference for the media in Finnish will be held at 10am EET.
A presentation for analysts in English will be held at 11am EET.

The presentation for analysts can be followed as a live webcast on the company's
website at www.ruukki.com/investors. The event may also be attended through a
conference call. To attend the conference call, please call the number below
5-10 minutes before the event starts:
+44 20 7162 0077 (calls outside Finland)
09 2313 9201 (calls inside Finland)
Access code: 910472

A replay of the webcast can be viewed on the company website from approximately
4pm EET. A replay of the conference call will be available until 8 February
2012 at:
+44 20 7031 4064 (calls outside Finland)
09 2314 4681 (calls inside Finland)
Access code: 910472

The Annual Report and financial statements for 2011 will be published in full
during week 8.

Rautaruukki Corporation
Taina Kyllönen
SVP, Marketing and Communications

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 some 30 countries and
employs around 11,800 people. Net sales in 2011 totalled around EUR 2.8 billion.
The company's share is quoted on NASDAQ OMX Helsinki (Rautaruukki Oyj: RTRKS).
The Corporation uses the marketing name Ruukki.

DISTRIBUTION:
NASDAQ OMX Helsinki
Main media
www.ruukki.com


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