26 juli, 2006
08:01 CET
Rautaruukki's earnings up on the previous quarter - the good earnings trend is estimated to continue
Rautaruukki Corporation Stock Exchange Release 26 July 2006 at 9.01
Summary of the January-June 2006 results (comparative figures for Jan-Jun 2005),
unaudited
- Net sales EUR 1,784 million (1,953, comparable 1,701)
- Operating profit EUR 222 million (381, comparable 332)
- Profit before taxes 237 million (376)
- Earnings per share (diluted) EUR 1.33 (2.02)
- Gearing ratio 35.4 per cent (50.5)
- Operating profit for the second half of the year estimated to be clearly
better compared with the same period in 2005
Key figures 2006 2005 2005 2005* 2005*
1-6 1-6 1-12 1-6 1-12
Net sales, Me 1784 1953 3654 1701 3402
Operating profit, Me 222 381 618 332 569
Operating profit, % of net sales 12.4 19.5 16.9 19.5 16.7
Profit before taxes, Me 237 376 612
Earnings per share (diluted), e 1.33 2.02 3.31
*Comparable figures excluding Ovako.
The Interim report is unaudited.
Second-quarter highlights compared with the previous quarter (January-March
2006)
- Net sales grew by 8 per cent to EUR 928 million (856) and operating profit by
34 per cent to EUR 127 million (95)
- Earnings per share (diluted): EUR 0.77 (0.56)
- The growth in net sales and operating profit received a boost from the start-
up of the construction season and the rise in prices of steel products
- The solutions businesses accounted for 35 per cent of net sales and 33 per
cent of operating profit
- The Russian steel constructor Ventall was consolidated within Rautaruukki's
financial statements at 30 June 2006
- Rautaruukki's Nordic steel reinforcement business was divested
- After the report period, an agreement was concluded on disposal of the
affiliate Ovako
President and CEO Sakari Tamminen:
"The market situation improved further in the second quarter. The construction
season has got up to speed and order books in the engineering industry have
strengthened. For standard steel products too, demand has grown and prices have
risen somewhat.
During the report period, we completed the acquisition of the Russian steel
constructor OOO Ventall, and the company was consolidated within Rautaruukki's
financial statements at the end of June. This acquisition, together with the
colour coating line we started up in Ukraine and the new plant we opened in
Hungary that manufactures construction components, will significantly strengthen
our service capability within integrated systems in the strategically important
market area of central eastern Europe, Russia and Ukraine.
After the report period, we made an agreement on disposal of our affiliate
Ovako. This figured in our plans when we established the company last year, and
the disposal was carried out faster than estimated because the development of
the company was good and there was strong interest in the company. Approval by
the authorities is required for finalising the transaction.
The Ovako transaction as well as the sale of our Nordic steel reinforcement
business, which is waiting for regulatory approvals, mark the completion of our
withdrawal from the manufacture of long steel products, accomplishing one of our
strategic objectives. The divestment of long steel products will generate cash
flow and free up resources that can be invested in profitable growth in the
solutions businesses, particularly in central eastern Europe and Russia.
Full-year consolidated net sales in 2006 are expected to increase on the
comparable net sales in 2005. In the latter half of the year, operating profit
is estimated to be clearly better compared with the same period in 2005. In
addition, the Ovako arrangement - when completed - will bring Rautaruukki a tax-
free capital gain of about EUR 100 million. Cash flow will improve remarkably
due to divestments of reinforcing steel business and Ovako."
ADDITIONAL INFORMATION
President and CEO Sakari Tamminen, tel. +358 20 592 9075
CFO Mikko Hietanen, tel. +358 20 592 9030
Press conference
Presentation for analysts and press will be held on 26 July 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: 709921
The encore replay will be available until 29 July 2006.
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
Corporation: RTRKS). The Corporation has used the marketing name Ruukki since
2004.
DISTRIBUTION
Helsinki Exchanges
Principal Media
www.ruukki.com
unaudited
- Net sales EUR 1,784 million (1,953, comparable 1,701)
- Operating profit EUR 222 million (381, comparable 332)
- Profit before taxes 237 million (376)
- Earnings per share (diluted) EUR 1.33 (2.02)
- Gearing ratio 35.4 per cent (50.5)
- Operating profit for the second half of the year estimated to be clearly
better compared with the same period in 2005
Key figures 2006 2005 2005 2005* 2005*
1-6 1-6 1-12 1-6 1-12
Net sales, Me 1784 1953 3654 1701 3402
Operating profit, Me 222 381 618 332 569
Operating profit, % of net sales 12.4 19.5 16.9 19.5 16.7
Profit before taxes, Me 237 376 612
Earnings per share (diluted), e 1.33 2.02 3.31
*Comparable figures excluding Ovako.
The Interim report is unaudited.
Second-quarter highlights compared with the previous quarter (January-March
2006)
- Net sales grew by 8 per cent to EUR 928 million (856) and operating profit by
34 per cent to EUR 127 million (95)
- Earnings per share (diluted): EUR 0.77 (0.56)
- The growth in net sales and operating profit received a boost from the start-
up of the construction season and the rise in prices of steel products
- The solutions businesses accounted for 35 per cent of net sales and 33 per
cent of operating profit
- The Russian steel constructor Ventall was consolidated within Rautaruukki's
financial statements at 30 June 2006
- Rautaruukki's Nordic steel reinforcement business was divested
- After the report period, an agreement was concluded on disposal of the
affiliate Ovako
President and CEO Sakari Tamminen:
"The market situation improved further in the second quarter. The construction
season has got up to speed and order books in the engineering industry have
strengthened. For standard steel products too, demand has grown and prices have
risen somewhat.
During the report period, we completed the acquisition of the Russian steel
constructor OOO Ventall, and the company was consolidated within Rautaruukki's
financial statements at the end of June. This acquisition, together with the
colour coating line we started up in Ukraine and the new plant we opened in
Hungary that manufactures construction components, will significantly strengthen
our service capability within integrated systems in the strategically important
market area of central eastern Europe, Russia and Ukraine.
After the report period, we made an agreement on disposal of our affiliate
Ovako. This figured in our plans when we established the company last year, and
the disposal was carried out faster than estimated because the development of
the company was good and there was strong interest in the company. Approval by
the authorities is required for finalising the transaction.
The Ovako transaction as well as the sale of our Nordic steel reinforcement
business, which is waiting for regulatory approvals, mark the completion of our
withdrawal from the manufacture of long steel products, accomplishing one of our
strategic objectives. The divestment of long steel products will generate cash
flow and free up resources that can be invested in profitable growth in the
solutions businesses, particularly in central eastern Europe and Russia.
Full-year consolidated net sales in 2006 are expected to increase on the
comparable net sales in 2005. In the latter half of the year, operating profit
is estimated to be clearly better compared with the same period in 2005. In
addition, the Ovako arrangement - when completed - will bring Rautaruukki a tax-
free capital gain of about EUR 100 million. Cash flow will improve remarkably
due to divestments of reinforcing steel business and Ovako."
ADDITIONAL INFORMATION
President and CEO Sakari Tamminen, tel. +358 20 592 9075
CFO Mikko Hietanen, tel. +358 20 592 9030
Press conference
Presentation for analysts and press will be held on 26 July 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: 709921
The encore replay will be available until 29 July 2006.
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
Corporation: RTRKS). The Corporation has used the marketing name Ruukki since
2004.
DISTRIBUTION
Helsinki Exchanges
Principal Media
www.ruukki.com