Rautaruukki Oyj : Rautaruukki Corporation interim report Q1/2013: EFFICIENCY PROGRAMMES IMPROVED PROFITABILITY

 Rautaruukki Oyj : Rautaruukki Corporation interim report Q1/2013: EFFICIENCY
                      PROGRAMMES IMPROVED PROFITABILITY

Rautaruukki CorporationStock exchange release 25 April 2013 at 9am EEST

January-March 2013 (Q1/2012)

- Net cash from operating activities was EUR 22 million (54).
- Order intake was down 7% at EUR 590 million (634).
- Comparable net sales were down 16% at EUR 590 million (699). This decrease
was mostly due to divestment of the Engineering business at the end of 2012.
- Comparable operating profit was EUR 5 million (-15).
- Comparable result before taxes was -EUR 3 million (-25).

Guidance for 2013 remains unchanged

Comparable net sales in 2013 are estimated to be at the same level as in 2012.
Comparable operating profit is estimated to improve compared to 2012 and to be
positive.

KEY FIGURES
                                             Q1/13  Q1/12   2012
Comparable figures
Comparable net sales, EUR m                    590    699  2,789
Comparable operating profit, EUR m               5    -15    -65
Comparable operating profit
as % of net sales                              0.8   -2.2   -2.3
Comparable result before
income tax, EUR m                               -3    -25   -103
Reported figures
Reported net sales, EUR m                      590    702  2,796
Reported operating profit,
EUR m                                            4    -16   -101
Reported result before
income tax, EUR m                               -4    -27   -139
Net cash from operating activities, EUR m       22     54    172
Net cash before financing activities, EUR m      7     32     78
Earnings per share, EUR                      -0.03  -0.15  -0.85
Return on capital employed
(rolling 12 months), %                        -4.1   -0.7   -4.9
Return on capital employed
(annualised), %                                0.8   -2.9   -4.9
Gearing ratio, %                              72.4   67.9   71.2
Equity ratio, %                               44.3   46.3   45.6
Personnel on average                         8,876 11,350 11,214

President & CEO Sakari Tamminen

Uncertainty in the eurozone continued and the area was in recession during the
first quarter of 2013. Economic development continued also to show regional
differences. Market sentiment was and is wait-and-see. The emerging markets
and the United States are forecast to maintain global growth. As regards
Ruukki's most important markets, Sweden upgraded its growth forecast, whereas
forecasts in Russia were downgraded due to weakened domestic demand and fewer
investments. Many forecasts do not expect the eurozone economy, underpinned by
export-driven demand, to return to growth until the second half of 2013 or in
early 2014.

Improved earnings performance was mainly attributable to efficiency
improvement projects we initiated about a year ago across our businesses and
to favourable price development of raw material costs. These efficiency
projects have progressed to plan and during the first quarter this year
generated cost benefits totalling around EUR 18 million in addition to around
EUR 20 million in earnings improvement achieved last year. The annualised cost
impact of ongoing projects was around EUR 70 million at the end of March. It
is now estimated that the savings of around EUR 100 million sought will be
achieved and that the improvement in earnings performance will be visible in
full from the third quarter of this year onwards.

Significantly improved earnings performance in our steel business, both year
on year and quarter on quarter, turned comparable consolidated operating
profit back into the black. Compared to the previous quarter, improved
earnings performance was also visible as positive cash flow of EUR 22 million
from operating activities. Net working capital to sales was unchanged quarter
on quarter at 18%. Order intake in the construction business was up 4% year on
year, whereas order intake in the steel business was down 10%. Ruukki's net
sales were clearly at a lower level compared to a year earlier. This was
largely due to withdrawal from the engineering business at the end of last
year.

Operating profit in our construction business improved year on year as a
result of the efficiency programme, but was down quarter on quarter due to
normal seasonality. Order intake for residential roofing products was at the
same level as a year earlier, which is in line with market growth
expectations. Ruukki's focus on its own distribution in roofing products was
visible as higher than market growth last year and it is my view that this
performance can be repeated also during the current year. Our order intake for
commercial and industrial construction was up clearly compared to a year
earlier. Russia and Sweden accounted for most of the growth, whereas activity
in Finland was more modest. Order intake included new project orders in Sweden
and in Russia order intake was up both for concept buildings and steel
structure projects.

The clear improvement in profitability compared to the previous quarter in our
steel business was attributable to higher delivery volumes, better product
mix, lower costs and optimum use of raw materials, together with cost savings
achieved. The comparable share of special steel products reported for previous
years rose year on year to account for 32% (30) of net sales in our steel
business.

Overcapacity in the steel industry in Europe means that price development
depends not just on demand, but also greatly on the price development of main
raw materials. It is estimated that steel wholesalers have now restocked and
this might weaken demand during the second quarter. There are good prospects
for Ruukki to grow its share of special steels because our product portfolio
and quality, together with our sales and distribution network, provide a
strong platform for growth.

My expectations for 2013 are mildly optimistic thanks to our actions to
improve efficiency and the business choices we have made, even though we
cannot expect any significant help from a pick-up in the market. Comparable
net sales in 2013 are estimated to be at the same level as in 2012. Comparable
operating profit is estimated to improve compared to 2012 and to be positive.

Rautaruukki Corporation's full interim report for January-March 2013 is
attached to this release.

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

News conference for analysts and the media
A joint news conference in English both for analysts and the media will be
hosted on Thursday 25 April at 10.30am at Ruukki, Suolakivenkatu 1, 00810
Helsinki.

A live webcast of the event and the presentation by the company's President &
CEO Sakari Tamminen may be followed online on the company website at
www.ruukki.com/Investors starting at 10.30am EEST. This event can also be
attended through a conference call by dialling the number below 5-10 minutes
before the scheduled time:
+44 207 1620 177 (calls outside Finland)
+358 9 2313 9202 (calls inside Finland)
Access code: 930974

A replay of the webcast can be viewed on the company's website from no later
than 4pm EEST onwards. A recording of the conference call will be available
until 3 May 2013 at:
+44 20 7031 4064 (calls outside Finland)
+358 9 2314 4681 (calls inside Finland)
Access code: 930974

Rautaruukki Corporation
Taina Kyllönen
SVP, Marketing and Communications

Ruukki specialises in steel and steel construction. We provide customers with
energy-efficient steel solutions for better living, working and moving. We
have around 9,000 employees and an extensive distribution and dealer network
across some 30 countries including the Nordic countries, Russia and elsewhere
in Europe and the emerging markets, such as India, China and South America.
Net sales in 2012 totalled EUR 2.8 billion. The company's share is quoted on
NASDAQ OMX Helsinki (Rautaruukki Oyj: RTRKS). www.ruukki.com

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

Rautaruukki Corporation Interim Report Q1 2013

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Source: Rautaruukki Oyj via Thomson Reuters ONE
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