Rautaruukki's comparable third quarter operating profit grew by 26%

Rautaruukki Oyj Stock Exchange Release 1 November 2006 at 9.01 
 
Rautaruukki's comparable third quarter operating profit grew by 26% from last
year
Summary of the January-September 2006 results (comparative figures for Jan-Sep
2005), unaudited

- Net sales EUR 2,669 million (2,764)
- Operating profit EUR 362 million (495)
- Profit before taxes 378 million (491)
- Earnings per share (diluted) EUR 2.09 (2.64)
- Gearing ratio 25.3 per cent (34.1)
- Operating profit for the fourth quarter is estimated to be clearly better
compared with the same period in 2005

Key figures                        2006    2005     2006    2005     2005
                                     7-9     7-9     1-9     1-9     1-12
Net sales, Me                        885     812    2669    2764     3654
- comparable                         868     745    2502    2314     3128
Operating profit, Me                 140     114     362     495      618
- comparable                         141     112     348     422      539
Operating profit, % of net sales    15.9    14.1    13.6    17.9     16.9
- comparable                        16.2    15.0    13.9    18.2     17.2
Profit before taxes, Me              141     116     378     491      612
Earnings per share (diluted), e     0.76    0.61    2.09    2.64     3.31
Comparable figures excluding Ovako and Nordic reinforcing steel business.

The Interim report is unaudited.


Third-quarter highlights compared with the third quarter of 2005

- Comparable net sales grew by 17 per cent to EUR 868 million (745)
- Net sales were lifted by higher selling prices and the acquisitions that have
 been made
- Comparable operating profit was up 26 per cent to EUR 141 million (112)
- Earnings per share (diluted) was EUR 0.76 (0.61)
- The solutions businesses accounted for 42 per cent of net sales (33) and 44
 per cent of operating profit (54)
- The divestment of the Nordic reinforcing steel business was closed
- Regulatory approval for the divestment of the associated company Ovako is
pending and the deal is expected to close during the latter part of 2006


President and CEO Sakari Tamminen:

"The market situation has remained robust in the third quarter. There was
continuing strong demand within construction, and deliveries to the engineering
industry grew. Demand for standard and special steel products held up well, and
prices of steel products rose further.

Over the past couple of years we have resolutely altered the company's structure
and divested non-core units and unprofitable functions. The solutions businesses
are approaching the sought-after level of 50% of net sales. The profitability of
steel product business and the company's strong balance sheet also provide a
solid foundation for profitable growth. We are now able to concentrate to the
full extent on developing solutions that are delivered to customers in the
construction and engineering industries and to growing the profitable business
based on them.

The growing construction market in eastern Europe, Ukraine and Russia offers us
excellent growth potential. Accordingly, in September we decided to launch major
expansion investments in Romania and Ukraine. When the investments are
completed, we will be able to increase significantly our deliveries of
components and integrated solutions for commercial and industrial construction,
thereby expanding our services to customers in Ukraine, Romania and Bulgaria.
After the reporting period we made the decision to expand our service centre in
St. Petersburg in order to respond to the growing demand in the area.

We have defined new growth and profitability targets for the next three years
and clarified the focus of our dividend policy. I believe that the targets are
now better in line with the potential of our present businesses.

Full-year consolidated net sales in 2006 are estimated to exceed EUR 3.5
billion. Cash flow is estimated to improve considerably thanks to good
profitability and the Ovako transaction. We estimate that the fourth quarter
operating profit will improve markedly compared with the same period last year
and that the Group is well positioned to start the year 2007."


ADDITIONAL INFORMATION

Sakari Tamminen, President and CEO, tel. +358 20 592 9075
Mikko Hietanen, CFO, tel. +358 20 592 9030


Press conference

Presentation for analysts and press will be held on 1 November 2006 at 10:30
Finnish time at Ruukki, Suolakivenkatu 1, 00810 Helsinki.

Webcast and conference call

Conference call and Webcast for analysts and investors, conducted in English,
will begin today at 14:00 Finnish time. The webcast may be followed on the
company website at www.ruukki.com/investors.

To attend the conference call, please call 5 - 10 minutes before the scheduled
start time to the following telephone number:
+44 (0) 20 7162 0125
Password: Rautaruukki

The encore replay number:
+44 (0) 20 7031 4064
Access code: 723760
The encore replay will be available until 4 November 2006.

The Interim report January-September 2006 will be available on the company
website at www.ruukki.com/investors.


Rautaruukki Corporation

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. The company has operations in 23
countries and employs 12,000 people. Net sales in 2005 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.



DISTRIBUTION
Helsinki Exchanges
Principal Media
www.ruukki.com