Rautaruukki Falls as European Demand Drop Widens Quarterly Loss
Rautaruukki Oyj, a Finnish steelmaker, fell the most in two months as a recession in the euro area hurts demand in Europe, the company’s main source of revenue.
Rautaruukki fell as much as 4.5 percent, the most since Dec. 13. The Helsinki-based company traded down 3.4 percent to 5.24 euros at 10:44 a.m. in the Finnish capital. It was the biggest drop on the Nasdaq OMX Helsinki 25 index. Volume exceeded 55 percent of the three-month daily average.
“We cannot expect any significant help from a pick-up in the market,” Chief Executive Officer Sakari Tamminen said in a statement today. “The global economic outlook continues to be uncertain.”
The fourth-quarter net loss for the company widened 37 percent to 56 million euros ($74.7 million). Outokumpu Oyj, a Finnish maker of stainless steel, yesterday said its fourth- quarter loss almost tripled to 309 million euros. Rautaruukki had 94 percent of its revenue in Europe last quarter. The company also cut its payout to investors by 60 percent to 20 cents a share.
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