- ISIN FI0009003552
Rautaruukki
RAUTARUUKKI CORPORATION’S FINANCIAL STATEMENT BULLETIN 2008
Rautaruukki /
Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.
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Rautaruukki Corporation Financial Statement bulletin 5 February 2009 at 12.00
RAUTARUUKKI CORPORATION'S FINANCIAL STATEMENT BULLETIN 2008
Summary results for 2008 (comparable figures for 2007)
- Comparable consolidated net sales up 2 per cent to EUR 3,829 million (3,744)
- Comparable consolidated operating profit, excluding non-recurring items, EUR
584 million (635) Non-recurring restructuring costs of -EUR 11 million booked
for the fourth quarter
- Return on capital employed still at good level: 25.6 per cent (29.8)
- Earnings per share (diluted) EUR 2.93 (3.31)
- Board of Directors' dividend proposal: EUR 1.35 per share (1.70 and additional
dividend of 0.30)
- The company expects comparable consolidated net sales and operating profit for
the first quarter of 2009 to fall considerably short of those for the fourth
quarter of 2008
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| KEY FIGURES | 2008 | 2007 | Q4/ 2008 | Q4/ 2007 |
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| Net sales, EUR m | 3 851 | 3 876 | 847 | 982 |
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| Net sales, EUR m, comparable | 3 829 | 3 744 | 847 | 960 |
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| Operating profit, EUR m | 568 | 637 | 62 | 120 |
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| Operating profit, EUR m, | 584 | 635 | 74 | 119 |
| comparable, excluding | | | | |
| non-recurring items | | | | |
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| Operating profit as % of net | 14.7 | 16.4 | 7.3 | 12.2 |
| sales | | | | |
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| Operating profit as % of net | 15.3 | 17.0 | 8.7 | 12.4 |
| sales, comparable, excluding | | | | |
| non-recurring items | | | | |
--------------------------------------------------------------------------------
| Profit before taxes, EUR m | 548 | 621 | 45 | 109 |
--------------------------------------------------------------------------------
| Profit before taxes, EUR m, | 564 | 619 | 56 | 109 |
| comparable, excluding | | | | |
| non-recurring items | | | | |
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| Earnings per share, diluted, | 2.93 | 3.31 | 0.27 | 0.57 |
| EUR | | | | |
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| Return on capital employed, % | 25.6 | 29.8 | | |
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| Gearing ratio, % | 7.9 | 1.4 | | |
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| Personnel, average | 14 953 | 14 326 | 14 555 | 14 627 |
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The comparable figures exclude the business operations of Ruukki Betonstahl
GmbH, Ruukki Welbond BV and Carl Froh GmbH, which have been divested.
Fourth quarter of 2008 in brief:
- International credit crunch and economic downturn rapidly weakened demand
towards year-end
- Demand for non-residential construction weakened in all market areas. Demand
for infrastructure construction remained at level of previous year and, except
in the Baltics, demand for residential roofing products remained reasonably
strong.
- Good demand in the engineering industry from equipment manufacturers in the
energy industry. Demand for materials handling machinery and shipbuilding
profiles began to slow towards the year-end.
- Demand for steel products weakened in almost all product groups.
- The company has started to adjust operations in line with demand and the new
operational excellence programme Boost was launched to ensure the company's
long-term competitive edge and profitability.
President & CEO Sakari Tamminen:
-In 2008, we achieved our corporate profitability targets, despite a weak fourth
quarter. Demand during the first three quarters of the year was strong and sales
volumes were high in all our customer industries. However, there was a dramatic
change in the market environment during the fourth quarter, especially in
December. The international credit crunch and economic downturn have also
affected Rautaruukki's customer industries. This was reflected in a rapid
weakening in demand towards the end of the year, especially on the steel product
markets. We have reacted to this by adjusting our operations in several units in
line with decreased demand. We also launched our operational excellence
programme, Boost, which extends to 2011. Boost aims to further improve
efficiency and the company's competitive edge, as well as to ensure good
profitability in the long term.
Despite difficult market conditions, we continue to take the company forward in
the direction we have chosen. We still see long-term growth potential in
non-residential construction, in the lifting, handling and transportation
equipment industry, within equipment manufacturers in the energy industry,
especially in wind energy, and in special steels. I believe that Rautaruukki has
every chance of prospering even in challenging market conditions. A strong
balance sheet, competitive products and operations and an ability to react
quickly to changes in the customer field play a key role in this respect.
It is currently difficult to predict how long the downturn will last. We expect
general economic uncertainty, the poor predictability of customers' own demand
and uncertainty of funding, as well as a reduction in stock levels along the
supply chain to keep demand weak during the first months of 2009. We expect
comparable consolidated net sales and operating profit for the first quarter of
2009 to fall considerably short of those for the fourth quarter of 2008.
Press conference
A press conference for analysts and the media will be held on 5 February 2009 at
1.30pm at Ruukki, Suolakivenkatu 1, 00810 Helsinki.
The English webcast and conference call for investors and analysts will begin at
4pm Finnish time and can be viewed live on the company's website at
www.ruukki.com/investors. A replay of the webcast can be viewed on the same site
from about 8pm Finnish time.
To attend the conference call, please call the number below 5-10 minutes before
the conference begins:
+44 (0)20 7162 0025
Password: Rautaruukki
A recording of the conference call can be heard until 12 February 2009 at the
number below:
+44 (0) 20 7031 4064
Access code: 824011
FOR FURTHER INFORMATION, PLEASE CONTACT:
Sakari Tamminen, President & CEO, tel. +358 20 592 9075
Mikko Hietanen, CFO, tel. +358 20 592 9030
Rautaruukki Corporation
Anne Pirilä
SVP, Corporate Communications and Investor Relations
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 26 countries and
employs 14,300 people. Net sales in 2008 totalled EUR 3.9 billion. The company's
share is quoted on NASDAQ OMX Helsinki (Rautaruukki Oyj: RTRKS). The Corporation
uses the marketing name Ruukki.
www.ruukki.com
DISTRIBUTION:
NASDAQ OMX Helsinki
Main media
www.ruukki.com
REPORT OF THE BOARD OF DIRECTORS 2008
Business environment
Market conditions in Rautaruukki's core market areas and main customer
industries remained good throughout the first half of 2008. Strong demand
continued also during the third quarter, even though, as the quarter went on,
there were signs of weaker markets and demand in some customer segments such as
residential construction (Construction), colour-coated products (Metals) and, to
some extent, in the forest machinery sector (Engineering).
The fourth quarter of 2008 was abnormal in many ways. The fallout of the global
credit crunch and economic downturn was in evidence towards the end of the year
as it gathered strength in almost all the company's market areas and customer
industries. General uncertainty and the increasing difficulties of customers in
obtaining funding have resulted in a rapid decline in demand for Rautaruukki's
products and services since November. This is particularly the case in the
demand for steel products and, to some extent, also in construction.
Net sales for 2008
Unless otherwise stated, the comparable figures in brackets refer to the same
period a year earlier.
Consolidated net sales for 2008 were EUR 3,851 million (3,876). Comparable net
sales for the report period were EUR 3,829 million (3,744), up by EUR 85 million
or 2 per cent year on year. The comparable figures exclude Ruukki Betonstahl
GmbH and Ruukki Welbond BV, which were part of the Group until November 2007,
and Carl Froh GmbH, which was part of the Group until June 2008. Acquisitions
had no material impact on consolidated net sales for 2008.
The solutions businesses - Ruukki Construction and Ruukki Engineering - grew
their share of the company's net sales to 48 per cent (44) in 2008. Finland
accounted for 32 per cent (31) of consolidated net sales, the other Nordic
countries for 31 per cent (30) and Central Eastern Europe, Russia and Ukraine
for 21 per cent (21). The rest of Europe accounted for 13 per cent (15) of net
sales and other countries for 3 per cent (3).
Ruukki Construction's net sales for 2008 were EUR 1,067 million (1,042) and
Ruukki Engineering's net sales rose to EUR 765 million (667). Ruukki Metals
reported net sales of EUR 2,019 million (2,168) and comparable net sales of EUR
1,997 million (2,035).
Ruukki Construction increased net sales on the back of good demand for
non-residential construction during the first months of the year, higher price
levels and growth in the frame and project business across the entire market
area.
Ruukki Engineering increased net sales due to growing demand in the systems and
component business and the resulting rise in sales volumes, especially to
equipment suppliers in the lifting, handling and transportation equipment
industry and energy industry.
Ruukki Metals' net sales for the year were down owing to lower net sales,
compared to the previous year, of stainless steel and aluminium sold as trading
products, and weakened demand in all main product groups during the fourth
quarter. Special products rose to account for 27 per cent (24) of the division's
net sales in 2008.
Net sales for the fourth quarter of 2008
Consolidated net sales for the fourth quarter of 2008 were EUR 847 million
(Q4/2007: EUR 982 million reported and EUR 960 million comparable).
Ruukki Construction's net sales fell during the fourth quarter due to rapidly
declining demand across all market areas as a result of the global credit
crunch. The division's net sales for the fourth quarter were EUR 248 million
(292).
Ruukki Engineering's net sales rose during the fourth quarter year on year.
Higher net sales were particularly attributable to deliveries of wind turbine
tower plates for existing customers in the wind energy sector. The division's
net sales for the fourth quarter were EUR 187 million (180).
Ruukki Metals' net sales for the fourth quarter decreased to EUR 412 million due
to low demand (EUR 488 million comparable and EUR 509 million reported Q4/2007).
Demand weakened towards the end of the fourth quarter in all customer segments,
especially among subcontractors to the Swedish automotive industry.
Operating profit for 2008
The company reported operating profit EUR 568 million (637), equating to 15 per
cent (16) of net sales for the year. Comparable operating profit excluding
non-recurring items was EUR 584 million (635).
The share of the solutions businesses rose to 45 per cent (42) of consolidated
operating profit for 2008. Ruukki Construction's operating profit was EUR 128
million (163) and the operating profit excluding non-recurring items was EUR 132
million (163). Ruukki Engineering's operating profit was EUR 126 million (103)
and excluding non-recurring items EUR 128 million (103). Ruukki Metals'
operating profit was EUR 338 million (397) and comparable operating profit
excluding non-recurring items was EUR 350 million (395).
Ruukki Construction's operating profit for the entire year was affected by the
costs of building the organisation and sales network relating to an investment
programme in Central Eastern Europe, as well as by higher steel material costs.
The division's earnings during the fourth quarter were also adversely affected
by low capacity utilisation rates due to low demand.
Ruukki Engineering's operating profit improved on the back of continued strong
demand, the profitability improvement programme under way and increased sales
prices. The division also restructured production and developed its product
portfolio to improve profitability.
Ruukki Metals' operating profit was adversely affected throughout the report
period by the increased costs of unused capacity, especially in December when
one of the two blast furnaces at the Raahe Works in Finland was shut down until
further notice. Operating profit from stainless steel and aluminium was also
noticeably smaller than in 2007.
Foreign currency hedges helped to offset unfavourable impacts of exchange rates
in respect of raw material costs (USD) and the company's major sales currencies
(SEK, NOK, GBP).
Operating profit for the fourth quarter of 2008
Consolidated operating profit for the fourth quarter of 2008 was EUR 62 million
(120), equating to 7 per cent of net sales. Comparable operating profit
excluding non-recurring items was EUR 74 million (119).
Non-recurring restructuring costs of around EUR 11 million were booked in the
fourth quarter of 2008.
Ruukki Construction's operating profit for the fourth quarter dropped to EUR 13
million (Q4/2007: EUR 38 million) and excluding non-recurring items was EUR 17
million (38). Ruukki Engineering's operating profit rose by 48 per cent year on
year to EUR 26 million (18), EUR 27 million (18) excluding non-recurring items.
Ruukki Metals' reported operating profit was EUR 29 million (68) and the
comparable operating profit excluding non-recurring items was EUR 36 million
(68).
Financial items and profit for 2008
Net finance expense and exchange rate differences relating to finance totalled
EUR 23 million (20).
Group taxes were EUR 142 million (162), which include a decrease of EUR 23
million (decrease of 6) in deferred tax. The Group's effective tax rate was 26
per cent (26).
Profit for the period was EUR 406 million (459).
Diluted earnings per share were EUR 2.93 (3.31).
Balance sheet and key indicators
The consolidated balance sheet total was EUR 148 million higher at EUR 2,983
million than at year-end 2007 and EUR 4 million lower than at 30 September 2008
(2,987). Equity at year-end 2008 was EUR 1,948 million (1,960), equating to EUR
14.04 per share (14.13). The decrease in equity was attributable to translation
differences arising from movements in the exchange rates of the equity of
subsidiaries, movements in the fair value of zinc and electricity derivatives
and changes in the accounting practice for employee benefits. The equity ratio
at year-end 2008 was 65.9 per cent (70.1).
Return on equity during 2008 was 20.7 per cent (24.2) and return on capital
employed was 25.6 per cent (29.8).
Cash flow and financing
Cash flow from operating activities was EUR 382 million (417) and cash flow
before financing activities was EUR 169 million (271). The largest change was in
cash flow from investing activities, which for the entire report period was -EUR
213 million (-146).
Net interest-bearing financial liabilities at 31 December 2008 was EUR 155
million (28) and the gearing ratio 7.9 per cent (1.4).
At year-end 2008, the Group had liquid assets of EUR 254 million and undrawn
revolving credit facilities of EUR 150 million. Repayments totalling EUR 6
million of non-current interest-bearing debt are due during 2009.
In April 2008, Rautaruukki paid its shareholders dividends totalling EUR 277
million.
Personnel
The Group employed an average of 14,953 persons during 2008 (14,326). At
year-end 2008, the headcount was 14,286 (14 587) as follows: 6,955 employees in
Finland, 5,538 in Central Eastern Europe, Russia and Ukraine, 1,317 in the other
Nordic countries, 94 elsewhere in Europe and 382 in other countries.
Staff salaries and other employee benefits were EUR 464 million (448), of which
EUR 1 million (9) was expenses relating to share bonuses and EUR 3 million (12)
expenses related to profit sharing. Nearly the whole of Rautaruukki's personnel
belong to the profit sharing scheme.
Expenses of around EUR 1 million in respect of the 2008 earning period of the
valid 2008-2010 share ownership plan were booked through profit and loss in
2008. Around 85 executives or other key personnel are covered by the share
ownership plan.
Changes in Group structure
In 2008, property, plant and equipment increased by EUR 8 million and goodwill
by EUR 6 million through acquisitions.
To strengthen its position among customers within the lifting, handling and
transportation equipment industry, the company acquired, in February 2008, the
German company Wolter Metallverarbeitung GmbH, which makes booms for telescopic
and special cranes. To expand its special product expertise in laser and
laser-hybrid welding, Rautaruukki acquired, in April, the business operations of
Finnish company Hybri-Steel Oy. In June, Rautaruukki divested its German unit
Carl Froh GmbH, which makes precision tubes and components for the automotive
industry.
In November, the company divested a colour-coating line making colour-coated
special products for the automotive industry, in Gävle, Sweden. The
colour-coating line was not part of the company's core business. The transaction
had a positive impact of around EUR 1 million on profit and loss. In December,
Rautaruukki acquired the entire share capital of Lithuanian steel frame company
UAB Gensina. The acquisition furthers Rautaruukki's frame and envelope project
management business in Lithuania and the other Baltic states, and also
strengthens Rautaruukki's manufacturing network serving the Baltic states.
Capital expenditure
Net cash outflow from investing activities in 2008 was -EUR 213 million (-146).
Capital expenditure on tangible and intangible assets totalled EUR 229 million
(172), of which maintenance investments were EUR 76 million (54).
Investing activities generated a positive cash flow of EUR 25 million (70), of
which EUR 21 million (23) was derived from divestments of plant, property and
equipment and subsidiaries. EUR 9 million (44) was spent on acquisitions during
2008.
Ruukki Construction has an investment programme under way to increase delivery
capacity in Central Eastern Europe and Russia. A decision was taken in January
2008 to invest around EUR 20 million on building a new sandwich panel plant in
Finland. In April 2008, a decision was taken to invest around EUR 13 million to
build a steel service centre in Russia. In addition, a total of around EUR 44
million was spent during the report period on gradually increasing new finishing
capacity for special steel production.
Capital expenditure on tangible and intangible assets during 2009 is estimated
to remain well below EUR 200 million.
Annual General Meeting 2008
Rautaruukki Corporation held its Annual General Meeting in Helsinki on 2 April
2008.
Under the company's Articles of Association, the Annual General Meeting elects
the chairman, deputy chairman and members of the Board of Directors. The Annual
General Meeting decides on any amendments to the Articles of Association usually
by a two thirds majority decision. Under the Articles of Association the Board
of Directors appoints the company's CEO.
The Annual General Meeting re-elected Mr Jukka Viinanen and Mr Reino Hanhinen as
chairman and deputy chairman respectively of the Board of Directors. Maarit
Aarni-Sirviö, Christer Granskog, Pirkko Juntti, Kalle J. Korhonen and Liisa
Leino were all re-elected to the Board for a further term of office, which ends
at the close of the following Annual General Meeting.
The Annual General Meeting elected Marjo Matikainen-Kallström as the new
chairperson of the Supervisory Board and Inkeri Kerola as the new deputy
chairperson. Heikki Allonen, Turo Bergman, Miapetra Kumpula-Natri, Petteri Orpo,
Jouko Skinnari, Markku Tynkkynen and Tapani Tölli were all elected as members of
the Supervisory Board. The term of office of the Supervisory Board ends at the
close of the following Annual General Meeting.
The Annual General Meeting elected KHT audit firm KPMG Oy Ab as the company's
new auditor, with Mauri Palvi KHT as the principal auditor.
The Annual General Meeting authorised the Board of Directors to resolve to
acquire a maximum of 12,000,000 of the company's own shares (8.56% of the shares
issued). This authority is valid for 18 months from the decision of the Annual
General Meeting.
Based on a proposal by the Ownership Steering Department of the Prime Minister's
Office, which represents the Finnish State as shareholder, the Annual General
Meeting decided to establish a shareholders' Nomination Committee to prepare
proposals for the following Annual General Meeting regarding the composition of
the Board of Directors and directors' fees. Representatives of the three largest
shareholders as at 3 November 2008 were appointed to the Nomination Committee.
These representatives are Mr Markku Tapio, Senior Financial Counsellor, Prime
Minister's Office, Mr Timo Ritakallio, Deputy Chief Executive Officer, Ilmarinen
Mutual Pension Insurance Company and Mr Esa Rannila. The Chairman of
Rautaruukki's Board of Directors, Mr Jukka Viinanen, serves as the Committee's
expert member.
The Annual General Meeting held on 2 April 2008 decided that a dividend of EUR
1.70 per share, and an additional dividend of EUR 0.30 per share on the funds
released from the divestment of the long steel business, be paid for 2008. The
dividend, totalling EUR 277 million, was paid on 16 April 2008.
Board of Directors' committees
The Board of Directors has two permanent committees: the Audit Committee and the
Remuneration Committee. Pirkko Juntti (chair), Christer Granskog, Kalle J.
Korhonen and Liisa Leino were members of the Audit Committee during 2008. Jukka
Viinanen (chair), Maarit Aarni-Sirviö and Reino Hanhinen were members of the
Remuneration Committee.
Changes in executive management
As of 1 February 2009, Rautaruukki's Corporate Management Board comprises Sakari
Tamminen, President & CEO and chairman of the Management Board; Mikko Hietanen,
CFO and deputy to the CEO; Saku Sipola, President, Ruukki Construction; Tommi
Matomäki, President, Ruukki Engineering; Olavi Huhtala, President, Ruukki Metals
and Marko Somerma, Chief Strategy Officer. Under the terms of his service
contract, Heikki Rusila, who was earlier President of Ruukki Production, will
retire in late 2009.
Shares and share capital
During 2008, Rautaruukki Oyj shares (RTRKS) were traded for a total of EUR 5,530
million (8,444) on NASDAQ OMX Helsinki. The highest price quoted in 2008 was EUR
34.77 in June and the lowest was EUR 9.51 in November. The volume weighted
average price was EUR 22.03. The share closed at EUR 12.16 on the year and the
company had a year-end market capitalisation of EUR 1,706 million (4,157).
The company's registered share capital at 31 December 2008 was EUR 238.4 million
and there were 140,255,479 shares issued. The company has one series of shares,
with each share conveying one vote. Under the company's Articles of Association,
a voting restriction applies whereby the votes of an individual shareholder are
restricted to 80 per cent of the total number of votes carried by shares at the
meeting.
Based on warrants exercised under the 2003 bond with warrants, the company's
share capital was increased by 57,351 shares or EUR 97,496.70 during the report
year. A total of 26,050 of these shares were subscribed between 2 October and 26
November 2008 and the share capital was increased by EUR 44,285.00 accordingly.
This increase in share capital was entered in the Trade Register on 17 December
2008.
Employee warrants based on the 2003 bond with warrants have been publicly traded
on NASDAQ OMX Helsinki since 24 May 2006. One warrant entitles the holder to
subscribe one share at an issue price of EUR 1.70. Warrants had been exercised
to subscribe a total of 1,369,034 shares (98 per cent) by 31 December 2008. The
remaining warrants entitle holders to subscribe a total of 30,966 shares. The
subscription period expires on 23 May 2009.
The Board of Directors is authorised to acquire a maximum of 12,000,000 of the
company's own shares. The authority is valid for a period of 18 months from the
resolution of the Annual General Meeting on 2 April 2008. The Board of Directors
did not exercise the authorisation to buy own shares during the report period.
Similarly, the Board of Directors is also authorised to transfer a maximum of
13,785,381 treasury shares held by the company. The authority is valid until the
close of the 2009 Annual General Meeting. Under this authority, the company
transferred, on 28 March 2008, 11,594 treasury shares to persons covered by the
2007 earning period, which was the last, under the Group's Share Ownership Plan
2004. A total of 1,594 shares were returned to the company.
At year-end 2008, the company held 1,466,937 treasury shares, which at 31
December 2008 had a market value of EUR 17.8 million and an accountable par
value of EUR 6.3 million. Treasury shares account for a relative percentage of
1.05 per cent of the total number of shares and votes.
At the end of the report period, the Board of Directors had no valid authority
to issue convertible bonds or bonds with warrants or to increase the company's
share capital.
An analysis of shareholdings in the company by sector and size, the company's
largest shareholders and the interests of governing bodies and the Corporate
Management Board are disclosed in more detail in the Annual Report 2008.
Disclosure notifications
Pursuant to Chapter 2, Section 9 of the Finnish Securities Markets Act,
Rautaruukki received, on 28 May 2008, a disclosure notification from Capital
Research and Management Company (CRMC) that the aggregate holding of
Rautaruukki's shares and votes by the mutual funds CRMC manages had increased to
5.42 per cent.
Pursuant to Chapter 2, Section 9 of the Finnish Securities Markets Act,
Rautaruukki received, on 12 December 2008, a disclosure notification of an
ownership arrangement whereby the shareholding of the Finnish State in
Rautaruukki Corporation falls below the threshold referred to in Chapter 2,
Section 9 of the Finnish Securities Markets Act and Solidium Oy's ownership
exceeding that threshold. On 11 December 2008, the Finnish State transferred, as
a capital contribution under the Limited Liability Companies Act, all the
Rautaruukki Corporation shares it owned to Solidium Oy. Subsequent to the
transfer, Solidium owns 55,656,699 shares, equating to 39.68 per cent of
Rautaruukki's share capital and votes. The Finnish Financial Supervision
Authority (FIN-FSA) had granted Solidium Oy an exemption from the obligation,
which would otherwise arise, to launch a mandatory bid to other shareholders of
Rautaruukki Corporation.
Since the balance sheet date, on 28 January 2009, Rautaruukki Corporation,
pursuant to Chapter 2, Section 9 of the Finnish Securities Markets Act, has
received a disclosure notification from Capital and Research Management Company
(CRMC) that the aggregate holding in Rautaruukki shares for the mutual funds it
manages had, as at 26 January 2009, decreased to below five (5) per cent (1/20).
The number of Rautaruukki Oyj shares notified by CRMC (86-0206507) is 6,949,917
shares, which equate to 4.96 per cent of Rautaruukki's share capital and votes.
Research and development
The company spent EUR 27 million (28) on research and development in 2008. This
equates to roughly one per cent of net sales (1). The thrust of R&D during the
report period was on new solutions to meet the needs of the construction
industry and on high-strength and wear-resistant steels for transportation,
lifting and handling equipment structures.
Rautaruukki launched a solutions package to speed up the design and construction
of single-storey buildings. The package includes a software application
developed by the company to considerably shorten the initial stage of a
construction project and ensure the choice of compatible structures. In
September, Rautaruukki launched, initially in Finland, a new solution for
performance-based fire design to improve fire safety.
In the engineering industry Rautaruukki continued with a number of major
customers on the development of new applications throughout 2008. During the
report period, Rautaruukki started to apply virtual technology to cabin design,
thus shortening lead time during the product design stage.
The year saw further development of the direct quenching method for
high-strength steels and the launch of new grades of steels. A new direct
quenching unit started up on the plate line to manufacture wear-resistant steels
for the needs of the lifting, handling and transportation equipment industry.
Based on Rautaruukki's own innovation, the direct quenching method can be used
to make increasingly higher-strength steels, resulting in lighter structures and
improved performance.
Rautaruukki is also actively involved in national Strategic Centres for Science,
Technology and Innovation (CSTI). The most important of these centres as far as
the company is concerned are FIMECC, the Finnish Metals and Engineering
Competence Cluster, which has already started up, and CLEEN (energy and
environment) and RYM-SHOK (built environment) that are still being set up.
Environmental and energy issues
The corporate environmental policy, which was revised in December 2008, governs
the environmental management of all Rautaruukki's operations. The new
environmental policy further emphasises the company's commitment to the
continuous improvement of energy efficiency. Rautaruukki's production sites
operate in conformance with certified ISO 14001:2004 environmental management
and ISO 9001:2000 quality management systems. Certified systems covered 98 per
cent (95) of production and 80 per cent (75) of employees in 2008.
In the free initial allocation of emissions allowances for the second period
2008-2012 (Kyoto period) of the EU Emissions Trading Scheme, the Raahe and
Hämeenlinna works in Finland received 23.5 million emissions allowances, each
representing one tonne. The Mo i Rana rolling mill, which comes under the
Norwegian emissions trading scheme, will, according to a preliminary decision,
receive annual emissions allowances for 49,000 tonnes of emissions.
In 2008, emissions allowances trading generated income totalling EUR 4.9
million.
Taking into account the closure of the sinter plant at Raahe, recent adjustments
to production and the impacts of emissions reductions brought about by carbon
funds, the company does not expect to incur significant costs as a result of
emissions trading during the Kyoto period. However, emissions trading does
affect the cost of the electricity the company sources from the Nordic
electricity market.
In March 2008, Rautaruukki decided to close down the sinter plant at the Raahe
Works in Finland by the end of 2011. The company will switch over to using only
iron pellets as a raw material in the iron-making process. Closure of the sinter
plant will cut carbon dioxide emissions by 10 per cent or 500,000 tonnes a year.
It will also lead to a significant reduction in dust and sulphur dioxide
emissions, as well as lower energy consumption.
In early September 2008, the Raahe Works received a new environmental permit by
decision of the Supreme Administrative Court. The new permit contains stricter
limits than earlier as regards emissions to air and waterways. The new permit
terms and conditions require investments estimated at over EUR 70 million. These
investments will be completed by 2012.
In September 2008, Rautaruukki was included for the first time in the Dow Jones
Sustainability World (DJSI World) index and for the second year running in the
Dow Jones STOXX Sustainability (DJSI) index. The indexes include the top
companies in their sector that are committed to sustainable development. In
2008, Rautaruukki was ranked among the world's best six steel companies in the
DJSI World index.
In 2008, Rautaruukki spent a total of EUR 12 million (7) on environmental
investments.
More information about environmental issues can be found in the Annual Report
2008 and in the environmental reports for the Raahe and Hämeenlinna works.
Ruukki United profitability improvement programme
Ruukki United, Rautaruukki's programme to harmonise ways of working and improve
efficiency, aimed to cut annual costs and permanently free up capital, compared
with the 2004 cost structure, by the end of 2008.
By year-end 2008, the Ruukki United programme achieved annual cost savings of
around EUR 135 million (the target at the start of the programme was EUR 150
million). By year-end 2008, around EUR 75 million in capital had been freed up
(target: EUR 150 million). The Ruukki United profitability improvement programme
ended at the end of 2008.
New operational excellence programme - Boost
In October 2008, Rautaruukki initiated its corporate-wide Boost programme, which
aims at further operational efficiency and at improving the company's
competitive edge and profitability. Boost aims at a EUR-150-million improvement
in the company's operating profit, compared to the 2008 level, by year-end 2011.
Cost savings as a result of actions under the Boost programme are expected to be
in the region of EUR 50 million in 2009.
During the fourth quarter of the year, the company started actions
corporate-wide under the Boost programme. Ruukki Construction division is
centralising the manufacture of construction products in the Baltic states on
the Pärnu plant in Estonia. The small profiling units in Riga, Latvia and in
Vilnius, Lithuania will be closed by the end of April 2009. Local sales offices
in Latvia and Lithuania will continue to operate. In the Czech Republic, the
smaller profiling unit at Ostrava will be closed and production lines gradually
relocated to Rautaruukki's bigger plants in Hungary, Poland and Romania by the
end of the first quarter of 2009. A profitability programme initiated at the
steel frame and sandwich panel plant at Oborniki in Poland will last until
summer 2009.
In Ruukki Engineering division, production at the Hatvan site in Hungary will be
transferred to the Jaszbereny components plant during the first quarter of 2009.
In Ruukki Metals division, a decision was made to close the steel service centre
in Tampere, Finland by the end of June 2009. Parts processing will be
centralised on the steel service centres in Raahe and Seinäjoki. Operational
efficiency is to be improved and overlaps eliminated in the division's other
business and production units and in administration.
In Ruukki Production division, production and cost efficiency are to be improved
mainly by cutting the number of shifts. In November, the company announced it
was to adjust tube production at Oulainen, Finland. A decision was made to
discontinue the production of spiral-welded gas pipes at the site since it is
not part of the company's core business. In addition, maintenance functions were
outsourced at the Virsbo plant in Sweden and production volume at the plant was
scaled down in line with demand.
The company has also efficiency projects under way in business support
functions.
In the context of efficiency measures and actions to adjust operations, the
company initiated employer-employee negotiations in December about possible
redundancies, temporary layoffs and part-time working. Non-recurring costs of
EUR 11 million arising from these actions were booked for the last quarter of
2008.
Capital Market Day
Rautaruukki's annual Capital Market Day for investors and analysts was held in
Vaasa, Finland in October. At the event, the company announced it was to upgrade
its EBIT margin target from 12 per cent to 15 per cent. The company's other
financial targets and dividend policy remain unchanged. Also at the Capital
Market Day, Rautaruukki described the focus areas of business growth for the
next few years: Ruukki Construction's focus will be on the non-residential
construction market in Central Eastern Europe and CIS countries, Ruukki
Engineering will focus on OEM customers in the lifting, handling and
transportation equipment industry and in the energy industry. Ruukki Metals will
focus on special steels. The corporate-wide operational excellence programme
Boost was also announced at the event.
Rise in prices of raw materials in steel production
Annual contracts in respect of the main raw materials (coal and iron ore)
Rautaruukki uses in steel production are in US dollars. Prices of raw materials
rose sharply on the global market in 2008. A strengthening of the US dollar
towards the end of the year contributed to higher market prices of raw
materials. However, thanks to foreign currency hedging, currency fluctuations
had no material impact on the company's costs.
Compared to 2007, general rises in the cost of raw materials added around EUR
200 million to the company's own steel production costs in 2008 after taking
into account foreign currency hedges. Around one third of the rise in costs was
realised during the first half of the year and two thirds during the second
half.
Higher raw material costs were almost entirely offset by increased sales prices
and improved cost efficiency. The size and timing of price rises varied
according to product and market area. Hedging against the US dollar had a
positive impact of EUR 32 million (-21) on operating profit for 2008.
Other events taking place in 2008
Ruukki Group Oyj, in a legal action brought in spring 2006, demanded that the
Market Court prohibit Rautaruukki, under penalty payment, from using just the
name Ruukki as its marketing name. In its decision issued on 5 February 2008,
the Market Court dismissed all claims by Ruukki Group Oyj and stated that Ruukki
Group has no grounds to prohibit Rautaruukki from using the name Ruukki in
corporate communications and marketing. Furthermore, the Market Court ordered
Ruukki Group to compensate Rautaruukki's legal costs.
The Swedish company Boliden Commercial AB initiated arbitration proceedings
against Rautaruukki in late 2007. Boliden demanded a price differential payment
of around EUR 13 million from Rautaruukki. The dispute concerned the premium
components in the price of the zinc bought by Rautaruukki. In October 2008, the
Arbitral Tribunal dismissed all claims by Boliden Commercial AB against
Rautaruukki and ordered Boliden to compensate Rautaruukki's legal costs in full.
In October 2008, Rautaruukki received a statement of objections from the
European Commission, which suspected Rautaruukki's former subsidiary Fundia of
price collusion between 1996 and 2001 in respect of the manufacture of
prestressing steel. Rautaruukki divested the business operations in question in
2006. The prestressing steel business, which is under investigation, accounted
for a total of around EUR 20 million of Fundia's net sales in 2001. The European
Commission served such a statement of objections on dozens of European
companies. According to the statement of objections, the comparatively minor
prestressing steel business operations of Rautaruukki's former subsidiary are
not at the centre of the investigation. On 16 December 2008, Rautaruukki
submitted a report in respect of the statement of objections. At this stage of
the investigation, it is difficult to weigh up any sanctions.
In December 2008, the company adjusted steel production in line with weakened
demand by temporarily shutting down one of the two blast furnaces at the Raahe
Works in Finland. A start was made also on adjusting production in other units.
In connection with adjustment and efficiency improvement, the company initiated
employer-employee negotiations regarding possible layoffs, dismissals and
part-time working in different market areas.
Events taking place after the balance sheet date
In January 2009, Rautaruukki announced it was to improve the efficiency of its
steel business by merging its steelmaking division, Ruukki Production, with
Ruukki Metals as of 1 February 2009. The other divisions and segment reporting
will remain unchanged. The combination streamlines the corporate structure and
improves efficiency and supply chain management in the steel business.
In January 2009, Rautaruukki announced it is to acquire the entire share capital
of the Norwegian company Skalles Eiendomsselskap AS. Skalles Mek Verksted AS, a
fully-owned subsidiary of Skalles Eiendomsselskap AS, is one of Norway's leading
steel frame suppliers for industrial and commercial premises. Skalles' total
deliveries include the design, manufacture and installation of steel structures.
The company has some 50 employees and net sales for 2008 are estimated to be
around EUR 15 million. The transaction is subject to the approval of the
regulatory authorities and is expected to be closed during February 2009.
In January 2009, the company completed employer-employee negotiations in Finland
that were initiated during the fourth quarter of 2008. Relating to operations to
improve operational efficiency, the negotiations resulted in a decision to
reduce the workforce by some 460 persons, with around 250 of these reductions
being implemented through various pension arrangements. At the start of the
negotiations, it was estimated that a maximum of 520 reductions were needed in
Finland and around 1,000 across the company. Outside Finland, negotiations with
workers are progressing in accordance with the legislation of each country
concerned.
It was also additionally decided in the negotiations to temporarily lay off
people as a result of the need to adjust operations due to weakened market
conditions. The negotiations resulted in the temporary layoff of approximately
400 persons at Raahe and around 170 at Hämeenlinna at any one time. Temporary
layoffs will affect a total of some 3,200 people at different sites. The time
and length of layoffs will vary according to site.
Risks and risk management
The company's risk management is guided by the operating principles and process
of corporate risk management set out in the risk management policy approved by
the company's Board of Directors. Risk management is an integrated part of
Ruukki's management system, which also includes safety.
The global credit crunch and economic downturn have hampered the business of
Rautaruukki's customers and thus affected demand for the company's products.
Rautaruukki has factored in the changing situation by protecting its financial
position and by adjusting production and costs to bring them into line with
market demand.
The additional costs ensuing from increasingly stricter environmental
regulations and carbon emissions trading impact on the company's investments and
competitiveness, especially if not all actors in the industry are affected in
the same way. The company has taken thorough steps to anticipate and actively
track changes in environmental legislation and started on the actions required
accordingly.
The price and freight charges of iron ore, coal and other main raw materials
used in steelmaking are determined on the world market, which can make the price
of raw materials very volatile. Derivatives are used to manage the price of
electricity and zinc. The impact of these can extend to six years ahead for
electricity and three years for zinc.
Availability risks are controlled through long-term contracts to source the main
materials and energy used in steelmaking. The Group generates almost half of the
electrical energy it uses by utilising the gases released in the production
process.
The main raw materials used by the Group in steelmaking are priced in US
dollars. This exposes the Group to a major foreign currency risk since
USD-denominated sales account for only around one per cent of consolidated net
sales. In sales, the Group is exposed to a foreign currency risk mainly in
Swedish and Norwegian crowns, the Russian rouble and Polish zloty. Foreign
currency derivatives are used to hedge against currency exchange risks.
The company's currency-denominated investments to fund growth outside Finland
are exposed to fluctuations in exchange rates. The company seeks to limit these
investments to a certain percentage of total investments so that exchange rate
fluctuations in this respect do not materially jeopardise the company's balance
sheet position. Some of these investments are also hedged against exchange rate
fluctuations.
Most of the risk factors above apply to the company's steel business. Overall
business risks are balanced in line with the corporate strategy by growing the
solutions businesses.
The company's risk management is described in more detail in the Annual Report
2008.
Near-term outlook
The global credit crunch and its impact on the real economy have increased
general uncertainty in all Rautaruukki's market areas and customer industries.
Growing economic uncertainty and customers' difficulties to fund their business
have weakened demand for almost all Rautaruukki's products and services.
Market prospects in construction segments are expected to weaken noticeably in
all market areas compared to 2008. Demand for infrastructure construction is
expected to remain at last year's level and recovery measures decided by the
public sector are anticipated to sustain infrastructure construction in the
Nordic countries.
Within the engineering industry, a decline on last year is expected in the
lifting, handling and transportation equipment segment. Demand from equipment
manufacturers in the energy industry is expected to continue at a good level.
Demand for steel products is expected to improve on the exceptionally low level
witnessed at the end of 2008. Costs of raw materials used in steel production
are likely to come down considerably from what they were in 2008. However, it is
estimated that the impact of this will not be fully reflected until the second
half of the current year.
Low demand will result in adjustments to production in several units in Finland
and elsewhere.
Cost savings as a result of actions under the Boost programme are expected to be
in the region of EUR 50 million in 2009. Other adjustment measures are also
expected to considerably lower costs compared to 2008.
General uncertainty and high stock levels throughout the supply chain are likely
to result in continued weak demand during the first months of 2009. The company
expects comparable consolidated net sales and operating profit for the first
quarter of 2009 to fall considerably short of those for the fourth quarter of
2008.
Given the prevailing market conditions, the company considers it to be extremely
challenging to anticipate development for the entire year and will consequently
review its guidance on a quarterly basis.
Board of Directors' proposal for the disposal of distributable funds
The parent company's distributable equity at 31 December 2008 was EUR 1,161
million.
The Board of Directors has decided to propose to the Annual General Meeting to
be held on 24 March 2009 that a dividend of EUR 1.35 per share be paid for 2008
(2007: EUR 1.70 + an additional dividend of EUR 0.30 on the funds freed up from
divestment of the long steel business). Under the proposal, the total amount of
dividend payable is EUR 187 million. It is proposed to pay the dividend on 8
April 2009.
The figures for the report period contained in this financial statement bulletin
have been audited.
Helsinki, 5 February 2009
Rautaruukki Corporation
Board of Directors
DIVISIONS
Since the beginning of 2008, the accounting principle for segment information
has been revised as follows: Ruukki Metals division is responsible for the costs
or income arising when steel production diverges from normal capacity
utilisation. The comparable segment information for 2007 has been restated to
comply with the new accounting principle.
Ruukki Construction
--------------------------------------------------------------------------------
| EUR | Q1/ | Q2/ | Q3/ | Q4/ | 2007 | Q1/ | Q2/ | Q3/ | Q4/ | 2008 |
| million | 07 | 07 | 07 | 07 | | 08 | 08 | 08 | 08 | |
--------------------------------------------------------------------------------
| Net | 213 | 258 | 278 | 292 | 1 042 | 225 | 285 | 309 | 248 | 1 067 |
| sales | | | | | | | | | | |
--------------------------------------------------------------------------------
| Operati | 34 | 40 | 51 | 38 | 163 | 21 | 38 | 56 | 17 | 132 |
| ng | | | | | | | | | | |
| profit* | | | | | | | | | | |
--------------------------------------------------------------------------------
| as % of | 16 | 16 | 18 | 13 | 16 | 9 | 13 | 18 | 7 | 12 |
| net | | | | | | | | | | |
| sales* | | | | | | | | | | |
--------------------------------------------------------------------------------
* Excluding non-recurring items.
Net sales
Ruukki Construction's net sales for 2008 were EUR 1,067 million (1,042), up by 2
per cent year on year. The division accounted for 28 per cent (27) of
consolidated net sales. Net sales during the fourth quarter of 2008 declined to
EUR 248 million (EUR 292 million Q4/2007).
Ruukki Construction's net sales rose during the first three quarters of the year
on the back of continued good demand for non-residential construction, higher
price levels and growth in the frame and project business across the entire
market area.
Net sales during the fourth quarter of 2008, were not only affected by the
normal seasonal fluctuation in construction, but also by rapidly weakened demand
in all market areas as a result of the global credit crunch. In Central Eastern
Europe and Russia, decisions to start projects were pushed back until 2009 and
some projects were discontinued until further notice due to the credit crunch
hampering the ability of customers to obtain funding.
Infrastructure construction in Finland and the other Nordic countries remained
at the same level as in 2007 also towards the end of the year, despite a further
slow in demand for pile structures for building construction in Finland and
Sweden during the fourth quarter of 2008. Infrastructure construction accounted
for 11 per cent of the division's net sales in 2008.
Demand for residential roofing products remained reasonably strong, except in
the Baltics. In the Nordic countries, the focus has shifted from new to
renovation construction. Residential construction accounted for 14 per cent of
the division's net sales in 2008.
Operating profit
Ruukki Construction's operating profit for 2008, excluding non-recurring items,
was EUR 132 million (163). The division's operating profit for the fourth
quarter excluding non-recurring items declined to EUR 17 million (38). The costs
of starting up the investment programme in Central Eastern Europe and building
the associated organisation and sales network, as well as higher steel material
costs, affected the division's earnings performance for the year.
In addition, earnings for the fourth quarter were adversely affected by low
capacity utilisation rates due to weakened demand and by tougher competition.
Major new orders during 2008
Ruukki Construction secured several major contracts during 2008, the most
important of which included delivery of steel structures for the new Terminal 5
at London Heathrow Airport, steel superstructures for a bridge spanning the
Hudälven river in Sweden, the steel frame, foundation piles and retaining wall
structures for the new Oslo Opera House in Norway, steel frame and cladding
structures for an oriented strand board plant in Russia, steel superstructures
for the Partihallsförbindelsen bridge project in Sweden and the delivery of
steel frames, walls and roofs of a shopping and entertainment centre in Russia.
In addition, Rautaruukki played an extensive role in the construction of
Vuosaari Harbour in Helsinki, supplying a considerable amount of the foundation
structures for the quays and frame and envelope structures for buildings.
Deliveries in respect of the project were completed during the course of 2008.
The most important contract during the fourth quarter of 2008 was signed in
October. The contract is for the delivery and installation of steel bridge
superstructures at Narvik Harbour in Norway. November saw a contract signed to
design and deliver steel structures for a logistics complex to be built in
Minsk, Belarus.
Materialisation of the approximately EUR 100-million contract, signed by
Rautaruukki in February 2008, to deliver steel structures for the new Zenit
football stadium in St Petersburg, Russia has turned out to be uncertain. For
reasons beyond Rautaruukki's control, the project start has been postponed
several times. The main contractor of the project has changed and the new
contractor is re-tendering the frame delivery. Rautaruukki had not started
making the steel structures for the Zenit project and has thus not incurred
costs as a result of the project. Rautaruukki is negotiating about the delivery,
but there is no certainty that the project will continue as far as Rautaruukki
is concerned.
New technology solutions
In spring 2008, Ruukki Construction launched in Eastern Europe a solution for
single-storey construction. The concept is based on a software application
developed by Rautaruukki to considerably shorten the initial stage of a
construction project and ensure the choice of compatible structures. The
solution includes building design, foundations, frame and envelope structures.
In September, Ruukki Construction rolled out a new solution for
performance-based fire design to improve the fire safety of steel buildings. The
solution can be used to choose the financially most efficient method of fire
protection in each case and thus improve the competitiveness of steel frames.
Capital expenditure
Ruukki Construction's capital expenditure in 2008 totalled EUR 74 million. The
division invested in considerably expanding the production capacity of frame
structures and sandwich panels for the Central Eastern European and Russian
construction markets. The division's investment programme of around EUR 120
million to expand production capacity in Central Eastern Europe, Russia and
Finland was largely completed in 2008. The thrust of investments was in growing
the production capacity of steel frames and sandwich panels. The second and
third quarters of 2008 saw the start-up of new frame structure production lines
in Poland and Romania and capacity expansion investments in Russia.
The sandwich panel line at the Romanian plant, a profile production and sandwich
panel line at the Ukraine plant and a new sandwich panel plant in Finland will
be completed during 2009.
During the report period, Rautaruukki opened new sales offices in Kazakhstan and
Belarus.
In December 2008, Ruukki Construction strengthened its position in the Baltic
construction market through the acquisition of Lithuanian steel frame company
UAB Gensina, which has 82 employees and reported net sales of around EUR 9
million for 2007.
Since the balance sheet date, in January 2009, Ruukki Construction announced it
is to acquire the entire share capital of the Norwegian company Skalles
Eiendomsselskap AS. The company has some 50 employees and net sales for 2008 are
estimated to be around EUR 15 million. The transaction is subject to the
approval of the regulatory authorities and is expected to be closed during
February 2009.
Improved operational efficiency
During the course of 2008, Ruukki Construction carried out a number of actions
to improve operational efficiency. A new production model at the Pärnu element
factory in Estonia resulted in the loss of 26 jobs. In October, the division
announced it was to improve production efficiency in Central Eastern Europe. The
profiling unit in Ostrava, Czech Republic will be closed and production lines
will be relocated to Hungary, Poland and Romania by the end of the first quarter
of 2009. In addition, a profitability programme was initiated at the Oborniki
plant in Poland. In October, an announcement was made to temporarily adjust the
production of heavy frame structures at the plants in Ylivieska and Kalajoki,
Finland.
In December, an announcement was made that production efficiency is to be
improved by centralising the manufacture of construction products in the Baltic
states on the Pärnu plant in Estonia. The small profiling units in Riga, Latvia
and in Vilnius, Lithuania will be closed by the end of April 2009. Local sales
offices in Latvia and Lithuania will continue to operate. These actions are part
of the Boost operational excellence programme.
Since the balance sheet date, at the end of January 2009, the company decided to
adjust production and to initiate employer-employee negotiations at its sites in
Alajärvi, Vimpeli and Peräseinäjoki in Finland. It is estimated a maximum of 40
jobs will be reduced. These negotiations also cover temporary layoffs as well as
workforce reductions.
Ruukki Engineering
--------------------------------------------------------------------------------
| EUR | Q1/ | Q2/ | Q3/ | Q4/ | 2007 | Q1/ | Q2/ | Q3/ | Q4/ | 2008 |
| million | 07 | 07 | 07 | 07 | | 08 | 0 | 08 | 08 | |
| | | | | | | | 8 | | | |
--------------------------------------------------------------------------------
| Net | 167 | 163 | 157 | 180 | 667 | 188 | 205 | 184 | 187 | 765 |
| sales | | | | | | | | | | |
--------------------------------------------------------------------------------
| Operatin | 32 | 27 | 25 | 18 | 103 | 32 | 35 | 34 | 27 | 128 |
| g | | | | | | | | | | |
| profit* | | | | | | | | | | |
--------------------------------------------------------------------------------
| as % of | 19 | 17 | 16 | 10 | 15 | 17 | 17 | 19 | 14 | 17 |
| net | | | | | | | | | | |
| sales* | | | | | | | | | | |
--------------------------------------------------------------------------------
* Excluding non-recurring items.
Net sales
Ruukki Engineering's net sales for 2008 were EUR 765 million (667), up by 15 per
cent year on year. The division's share of consolidated net sales rose to 20 per
cent (17). Net sales during the fourth quarter rose to EUR 187 million (EUR 180
million Q4/2007).
Ruukki Engineering's net sales during the first three quarters of the year rose
as a result of growing demand in the systems and component business and the
resulting rise in sales volumes, especially in the lifting, handling and
transportation equipment industry and within energy equipment manufacturers.
Demand in the shipbuilding industry also remained good. An acquisition in
Germany also increased net sales compared to last year. Demand in the forest
machinery sector levelled off and the demand for booms for small earthmoving
machinery declined somewhat during the third quarter.
Higher net sales during the fourth quarter of 2008 were particularly
attributable to deliveries of wind turbine tower plates for existing customers
in the wind energy sector. Demand for materials handling machinery weakened
somewhat towards the end of the year. Demand remained at a good level in the
wood industry and offshore sector. Growing uncertainty in the shipbuilding
sector was reflected in fewer orders for shipbuilding profiles. Demand for
shipbuilding plates was similar to that at the start of the year.
The lifting, handling and transportation equipment industry accounted for 43 per
cent (42) of the division's net sales for 2008 and the energy sector for 21 per
cent (19).
Operating profit
Ruukki Engineering's operating profit for 2008, excluding non-recurring items,
rose to EUR 128 million (103). Operating profit for the fourth quarter,
excluding non-recurring items, rose to EUR 27 million (18). During the first
part of the year, the division's improved profitability was attributable to
continued strong demand in systems and component deliveries to OEMs in the
lifting, handling and transportation equipment industry and within energy
equipment manufacturers, the profitability improvement programme currently under
way and higher sales prices. During the report period, the division also
restructured production and developed its product portfolio to improve
profitability.
Improved profitability during the fourth quarter was attributable to higher
sales prices for plate products and bigger sales volumes. Supply chain
management was also improved.
Integration of the units the division acquired in Germany and Hungary was
successfully completed by the end of 2008.
Capital expenditure
Ruukki Engineering's capital expenditure in 2008 totalled EUR 19 million. The
division invested in new manufacturing technology to serve European engineering
customers and to broaden the customer base. Investments aim at improving
production efficiency, productivity, product quality and delivery reliability.
The fourth quarter of 2008 saw the start-up of a new robot welding line for
booms in Wroclaw, Poland. In addition, a decision was made to invest in two
robot welding cells at the Kurikka unit in Finland. Welding operations are also
being automated in Peräseinäjoki, Finland.
Projects to improve machining operations are progressing to plan at the
Sepänkylä and Kurikka plants in Finland and at the Jaszbereny unit in Hungary.
New equipment is being used in the manufacture of components for energy
equipment manufacturers and for the lifting, handling and transportation
equipment industry.
Improved operational efficiency
In February, Ruukki Engineering launched a profitability improvement programme
aimed at improving the division's operating profit by around EUR 20 million by
year-end 2008. Actions carried out improved the division's operating profit by
around EUR 15 million by the end of 2008.
In the context of this programme, Ruukki Engineering introduced a new
organisation and management model to support profitable growth. In addition, a
decision was made to focus on long-term customer relationships with growth
potential. With the exception of certain customers on an annual contract basis,
the division increased sales prices to offset the higher costs of raw materials.
Ruukki Tisza Zrt., the division's Hungarian unit, introduced a new enterprise
resource planning system to improve efficiency. In conjunction with
reorganisation and more efficient operations, agreement was reached in July to
cut 190 white-collar jobs in Hungary. In Finland, negotiations resulted in the
loss of 17 jobs in divisional administration.
Under the corporate-wide operational excellence programme, Boost, the division
initiated a project to transfer production from the Hatvan site in Hungary to
the component plant in Jaszbereny during the first quarter of 2009.
Ruukki Metals
--------------------------------------------------------------------------------
| EUR | Q1/ | Q2/ | Q3/ | Q4/ | 2007 | Q1/ | Q2/ | Q3/ | Q4/ | 2008 |
| million | 07 | 07 | 07 | 07 | | 08 | 0 | 08 | 08 | |
| | | | | | | | 8 | | | |
--------------------------------------------------------------------------------
| Net | 531 | 552 | 464 | 488 | 2 | 511 | 571 | 503 | 412 | 1 997 |
| sales | | | | | 035 | | | | | |
--------------------------------------------------------------------------------
| Operatin | 116 | 115 | 96 | 68 | 395 | 96 | 106 | 112 | 36 | 350 |
| g | | | | | | | | | | |
| profit* | | | | | | | | | | |
--------------------------------------------------------------------------------
| as % of | 22 | 21 | 21 | 14 | 19 | 19 | 19 | 22 | 9 | 18 |
| net | | | | | | | | | | |
| sales* | | | | | | | | | | |
--------------------------------------------------------------------------------
All figures are comparable and exclude Ruukki Betonstahl GmbH, Ruukki Welbond BV
and Carl Froh GmbH.
* Excluding non-recurring items.
Net sales
Ruukki Metals reported net sales for 2008 of EUR 2,019 million (2 168) and
comparable net sales of EUR 1,997 million (2 035). The division accounted for 52
per cent (56) of consolidated net sales in 2008.
Demand for steel products was good in all the division's market areas and
customer sectors during the first half of 2008. Higher net sales were
attributable to growth in the sale of special products and increased sales
prices. Demand continued to be mostly good during the third quarter, but slowed
for colour-coated products.
During the fourth quarter of 2008, there was a marked decline in demand for
steel products across all Ruukki Metals' market areas and in almost all customer
industries. Fourth quarter net sales were EUR 412 million, which is clearly
lower than a year earlier (EUR 509 million reported and EUR 488 million
comparable Q4/2007). Lower net sales were largely owing to the general economic
uncertainty created by the global credit crunch, which in turn weakened
end-customer demand.
Demand weakened during the fourth quarter in all main product groups - except
for a few customer segments such as the electrical and electronics industry,
where good demand continued. The strongest fall in demand was seen among
subcontractors to the Swedish automotive industry. Growing stock levels along
the entire supply chain also translated into lower demand during the fourth
quarter.
Stainless steel and aluminium accounted for EUR 224 million (306) of the
division's net sales during 2008 and for EUR 41 million (69) during the fourth
quarter.
Operating profit
Ruukki Metals reported operating profit for 2008 was EUR 338 million (397).
Comparable operating profit excluding non-recurring items was EUR 350 million
(395). Higher sales prices and growth in the share of special products
contributed to operating profit for the whole year.
During the fourth quarter of the year, operating profit was weakened because of
lower demand, tougher price competition in Europe and higher costs owing to
unused capacity, especially in December, due to the shut down of one of the two
blast furnaces at the Raahe Works in Finland.
Operating profit on stainless steel and aluminium was lower in 2008 than in
2007: EUR 26 million lower for the entire year and EUR 1 million lower during
the fourth quarter than a year earlier.
Ruukki Metals made good progress during 2008 with its strategy to increase the
share of special products: special products accounted for 27 per cent (24) of
the division's net sales for the whole year and 22 per cent (25) for the fourth
quarter. During the second half of 2008, Ruukki Metals secured a number of new
strategic special product customers outside its main market area.
Capital expenditure
Ruukki Metals' capital expenditure in 2008 totalled EUR 16 million. The
division's biggest investments were on growing the production capacity of
special steel products.
August saw the start-up of a new steel service centre in Oborniki, Poland, where
the machinery base was enlarged during late 2008. The machinery at the Parnas
steel service centre in St Petersburg was modernised during 2008 and a new
cut-to-length line came on stream there during the fourth quarter.
A decision was made in August to invest EUR 12 million in steel service centres.
In addition, steel service centre operations were centralised and the division
of work reorganised between the units: Naantali (special products) and Järvenpää
(stainless and aluminium) in Finland and Halmstad (upgrading of Rautaruukki's
own steel products) in Sweden. The service centres are specialising to further
improve delivery accuracy, cost-efficiency and profitability.
In April, a decision was made to establish a new steel service centre next to
the steel structure production plant in Obninsk, to the southwest of Moscow. The
approximately EUR 13-million investment will broaden the special products
portfolio and service capacity. The steel service centre should begin operations
in late 2009.
M&A arrangements
Acquisition of the business operations of Hybri-Steel Oy during the second
quarter of 2008 broadened the company's special products expertise to encompass
laser-welded steel plates and laser and laser-hybrid welding.
In June, Rautaruukki divested its German unit Carl Froh GmbH, which makes
precision tubes and components for the automotive industry. The divestment is
part of Rautaruukki's strategy, whereby Ruukki Metals' focus in the Central and
Southern European markets is on special products.
Improved operational efficiency
In December, the company announced plans to focus parts processing in Finland on
the steel service centres in Raahe and Seinäjoki and to close the Tampere steel
service centre by the end of June 2009. Employer-employee negotiations relating
to closure of the Tampere unit ended in January 2009. Closure of the unit will
result in the loss of 63 jobs. These actions are part of the Boost operational
excellence programme which started in October 2008.
Since the balance sheet date, Rautaruukki announced that its steel product
manufacturing division, Ruukki Production, is to merge with Ruukki Metals
division. The merger, which took effect on 1 February 2009, streamlines the
corporate structure and improves efficiency and supply chain management in the
steel business.
Major delivery and partnership agreements and other events
In July, Rautaruukki started parts processing for waste treatment containers for
the growing Russian market. The company has agreed on long-term cooperation in
fabrication with Europress Group Ltd. The waste treatment containers are made at
Rautaruukki's plant in Obninsk, near Moscow and the first containers were
delivered in November 2008.
In September, Rautaruukki and the Finnish company Steelpa Oy started working
together to make parts for excavator buckets for the engineering industry. The
companies signed a long-term manufacturing partner agreement. The first parts
for the buckets were delivered during September.
In October, Rautaruukki strengthened its business in special products and parts
processing with the start of a long-term partnership with VR, Finland's rail
transport provider, to deliver special steels for freight wagons. Deliveries
under the contract started in October and will continue until 2012. Deliveries
will be worth a total of around EUR 7 million by the end of 2009.
The Ministry for Economic Development and Trade of the Russian Federation
continues its investigation concerning the anti-dumping of colour-coated
products. If introduced, import duties would apply to exports of colour-coated
products to Russia from the date any decision enters into force. Rautaruukki
manufactures and exports around EUR 30 million of these products from Finland to
Russia each year.
Ruukki Production
--------------------------------------------------------------------------------
| 1000 | Q1/ | Q2/ | Q3/ | Q4/ | 2007 | Q1/ | Q2/ | Q3/ | Q4/ | 2008 |
| tonnes | 07 | 07 | 07 | 07 | | 08 | 08 | 08 | 08 | |
--------------------------------------------------------------------------------
| Steel | 703 | 672 | 610 | 561 | 2 546 | 672 | 680 | 703 | 531 | 2 585 |
| producti | | | | | | | | | | |
| on | | | | | | | | | | |
--------------------------------------------------------------------------------
Production
Rautaruukki's steel production during 2008 was 2,585 thousand tonnes (2,546).
Steel production during the fourth quarter of 2008 was down compared to the
reference period a year earlier because production was adjusted in line with
lower demand. The steel production capacity utilisation rate decreased
especially in December, when one of the two blast furnaces at the Raahe Works in
Finland was shut down until further notice. The lowest capacity utilisation rate
during the fourth quarter was in strip products. The capacity utilisation rate
in heavy plate production was high throughout the year.
December saw the start of employer-employee negotiations at Ruukki Production in
a bid to improve operational efficiency and to adjust steel production and
production costs to market conditions. In January 2009, the negotiations
resulted in a decision to reduce the workforce at the Raahe Steel Works by some
140 persons. Efforts will be made to carry out all of these reductions through
various pension arrangements. At the Hämeenlinna Works, the workforce will be
reduced by some 80, with around 50 of these reductions being implemented through
pension arrangements.
In addition, around 400 people at Raahe and around 170 people in Hämeenlinna
will be temporarily laid off at any one time. Temporary layoffs will affect a
total of some 3,200 people at different sites. The time and length of layoffs
will vary according to site.
Rise in prices of steel raw materials in 2008
Prices of raw materials rose sharply on the global market during the report
period. A strengthening of the US dollar towards the end of the year also
contributed to higher market prices of raw materials. However, thanks to foreign
currency hedging, currency fluctuations had no material impact on the company's
costs. Compared to 2007, general rises in the cost of raw materials added around
EUR 200 million to the company's own steel production costs in 2008 after taking
into account foreign currency hedges. Around one third of the rise in costs was
realised during the first half of the year and two thirds during the second
half. Higher costs were mostly attributable to rises in the price of coal and
iron ore.
Capital expenditure
A total of some EUR 44 million was spent in 2008 on increasing special steel
production capacity. The main thrust of investments was on increasing the
production capacity of high-strength and wear-resistant steels and components
for use in the lifting, handling and transportation equipment industry. During
the first part of the year, the production capacity of special steel products at
the Raahe Works was increased by a new plasma cutting and packaging unit, as
well as by the commissioning of the first stage of a new ladle treatment unit.
Work started on the second stage of the ladle treatment unit in January 2009 and
the unit will be commissioned during the second quarter of the year.
November saw the start-up of the colour-coating line at Antratsyt in Ukraine
after the automation was upgraded. The line's products are mainly used in
construction.
December saw the test run of a new cold leveller at the plate mill at the Raahe
Works. The leveller will start up fully during the first quarter of 2009 and
will broaden Rautaruukki's portfolio of wear-resistant and high-strength special
steel products. These products are used, for example, in boom structures,
excavator buckets and in other demanding structures within the lifting, handling
and transportation equipment industry. A new plasma cutting and packaging unit
was commissioned on the plate cutting line at the works towards the end of the
year. The new unit will improve the cutting efficiency of quenched plates.
Improved operational efficiency
In November, Rautaruukki announced it was to adjust tube production at Oulainen,
Finland. A decision was made to discontinue the production of spiral-welded gas
pipes at the site since this is not part of the company's core business.
Employer-employee negotiations initiated at the site on 4 November 2008 ended at
the end of January 2009. The result was a reduction of 53 jobs at Oulainen, with
18 of these reductions being carried out through pension arrangements.
Spiral-welded line pipes used in mains water pipelines and the large piles and
structural pipelines used in construction will continue to be made at Oulainen.
In addition, maintenance functions were outsourced at the Virsbo plant in Sweden
and production volume at the plant was aligned to slackened demand. Around 20
maintenance staff transferred to the employ of the company responsible for
maintenance as a result. The Virsbo plant makes small line pipes and structural
tubes.
Other events taking place in 2008
In February, a strike by workers belonging to a trade union branch at the Raahe
Works in Finland stopped hot-rolling at the works for about 48 hours and steel
production ran at half capacity. Likewise in May, strikes by workers at the
Raahe Works affected production. The Labour Court judged the strikes unlawful on
both occasions. The strikes had a negative impact of around EUR 8 million on
operating profit in 2008.
In March a decision was made to close the sinter plant at the Raahe Works in
Finland by the end of 2011. The company will switch over to using only iron
pellets as a raw material in the iron-making process and has a long-term supply
contract with LKAB of Sweden. Closure of the sinter plant will also
significantly cut emissions and energy consumption at the Raahe Works.
In November, the company sold a colour-coating line in Gävle, Sweden to the
Swedish company Trelleborg Rubore AB. The line makes colour-coated special
products for the automotive industry and was not part of Rautaruukki's core
business. The 35 workers on the line transferred to the employ of the new owner.
There was a marked improvement in the division's accident frequency rate
compared to a year earlier. The accident frequency rate in 2008 was 13 accidents
per million hours worked (19).
From 1 February 2009, Ruukki Production is part of the Ruukki Metals division.
TABLES
This financial statement release has been prepared in accordance with IAS 34
and, with the exception of a change in the recognition of pension and disability
pension liabilities, is in conformity with the accounting policies published in
the 2007 financial statements.
Rautaruukki changed the accounting practice for pension obligations with respect
to the recognition of actuarial gains and losses. The change decreased equity at
31 December 2007 by EUR 24 million and balance sheet assets by EUR 26 million.
The IFRS interpretation of the Finnish disability benefit was changed from a
defined contribution plan to a defined benefit plan with effect from 1 January
2008. The change decreased equity by EUR 34 million. Further information about
the change in accounting practice is given at the end of this release. The
figures and calculations for reference periods presented in this release have
been restated accordingly.
Individual figures and totals appearing in the tables have been rounded to the
nearest full million of euros.
--------------------------------------------------------------------------------
| SUMMARY CONSOLIDATED INCOME | | | | |
| STATEMENT | | | | |
--------------------------------------------------------------------------------
| EUR million | Q4/08 | Q4/07 | 2008 | 2007 |
--------------------------------------------------------------------------------
| Net sales | 847 | 982 | 3 851 | 3 876 |
--------------------------------------------------------------------------------
| Other operating income | 13 | 10 | 31 | 26 |
--------------------------------------------------------------------------------
| Operating expense | -761 | -832 | -3 169 | -3 111 |
--------------------------------------------------------------------------------
| Depreciation, amortisation and | -37 | -39 | -146 | -153 |
| impairment losses | | | | |
--------------------------------------------------------------------------------
| Operating profit | 62 | 120 | 568 | 637 |
--------------------------------------------------------------------------------
| Finance income and expense | -18 | -11 | -23 | -20 |
--------------------------------------------------------------------------------
| Share of results of associates | 0 | 0 | 3 | 3 |
--------------------------------------------------------------------------------
| Profit before taxes | 45 | 109 | 548 | 621 |
--------------------------------------------------------------------------------
| Taxes | -7 | -30 | -142 | -162 |
--------------------------------------------------------------------------------
| Profit for the period | 37 | 79 | 406 | 459 |
--------------------------------------------------------------------------------
| Attributable to: | | | | |
--------------------------------------------------------------------------------
| Equity shareholders of the | 38 | 79 | 406 | 458 |
| parent | | | | |
--------------------------------------------------------------------------------
| Minority interests | -1 | 0 | -1 | 1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Diluted earnings per share, EUR | 0.27 | 0.57 | 2.93 | 3.31 |
--------------------------------------------------------------------------------
| Basic earnings per share, EUR | 0.27 | 0.57 | 2.93 | 3.31 |
--------------------------------------------------------------------------------
| Operating profit as % of net | 7.3 | 12.2 | 14.7 | 16.4 |
| sales | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SUMMARY CONSOLIDATED BALANCE SHEET | | |
--------------------------------------------------------------------------------
| EUR million | 31 Dec | 31 Dec |
| | 2008 | 2007 |
--------------------------------------------------------------------------------
| ASSETS | | |
--------------------------------------------------------------------------------
| Non-current assets | 1 442 | 1 447 |
--------------------------------------------------------------------------------
| Current assets | | |
--------------------------------------------------------------------------------
| Inventories | 750 | 614 |
--------------------------------------------------------------------------------
| Trade and other receivables | 536 | 579 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 254 | 196 |
--------------------------------------------------------------------------------
| | 2 983 | 2 835 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | |
--------------------------------------------------------------------------------
| Equity | | |
--------------------------------------------------------------------------------
| Attributable to shareholders of the parent | 1 948 | 1 960 |
--------------------------------------------------------------------------------
| Minority interests | 2 | 3 |
--------------------------------------------------------------------------------
| Non-current liabilities | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 276 | 138 |
--------------------------------------------------------------------------------
| Other non-current liabilities | 158 | 189 |
--------------------------------------------------------------------------------
| Current liabilities | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 133 | 86 |
--------------------------------------------------------------------------------
| Trade payables and other liabilities | 466 | 461 |
--------------------------------------------------------------------------------
| | 2 983 | 2 835 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SUMMARY CASH FLOW STATEMENT | | |
--------------------------------------------------------------------------------
| EUR million | 2008 | 2007 |
--------------------------------------------------------------------------------
| Profit for the period | 406 | 459 |
--------------------------------------------------------------------------------
| Adjustments | 250 | 290 |
--------------------------------------------------------------------------------
| Cash flow before change in working capital | 656 | 749 |
--------------------------------------------------------------------------------
| Change in working capital | -110 | -112 |
--------------------------------------------------------------------------------
| Financing items and taxes | -164 | -219 |
--------------------------------------------------------------------------------
| Cash flow from operating activities | 382 | 417 |
--------------------------------------------------------------------------------
| Cash inflow from investing activities | 25 | 70 |
--------------------------------------------------------------------------------
| Cash outflow from investing activities | -238 | -217 |
--------------------------------------------------------------------------------
| Total cash flow from investing activities | -213 | -146 |
--------------------------------------------------------------------------------
| Cash flow before financing activities | 169 | 271 |
--------------------------------------------------------------------------------
| Dividend paid | -277 | -276 |
--------------------------------------------------------------------------------
| Change in debt | 193 | -155 |
--------------------------------------------------------------------------------
| Other net cash flow from financing activities | -13 | -6 |
--------------------------------------------------------------------------------
| Change in cash and cash equivalents | 70 | -166 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| KEY FIGURES | 2008 | 2007 |
--------------------------------------------------------------------------------
| Net sales, EUR m | 3 851 | 3 876 |
--------------------------------------------------------------------------------
| Operating profit, EUR m | 568 | 637 |
--------------------------------------------------------------------------------
| as % of net sales | 14.7 | 16.4 |
--------------------------------------------------------------------------------
| Profit before taxes, EUR m | 548 | 621 |
--------------------------------------------------------------------------------
| as % of net sales | 14.2 | 16.0 |
--------------------------------------------------------------------------------
| Profit for the period, EUR m | 406 | 459 |
--------------------------------------------------------------------------------
| as % of net sales | 10.5 | 11.8 |
--------------------------------------------------------------------------------
| Return on capital employed, % | 25.6 | 29.8 |
--------------------------------------------------------------------------------
| Return on equity, % | 20.7 | 24.2 |
--------------------------------------------------------------------------------
| Equity ratio, % | 65.9 | 70.1 |
--------------------------------------------------------------------------------
| Gearing ratio, % | 7.9 | 1.4 |
--------------------------------------------------------------------------------
| Net interest-bearing financial | 155 | 28 |
| liabilities, EUR m | | |
--------------------------------------------------------------------------------
| Equity per share, EUR | 14.04 | 14.13 |
--------------------------------------------------------------------------------
| Personnel on average | 14 953 | 14 326 |
--------------------------------------------------------------------------------
| Number of shares | 140 255 479 | 140 198 128 |
--------------------------------------------------------------------------------
| - excluding treasury shares | 138 788 542 | 138 721 191 |
--------------------------------------------------------------------------------
| - diluted, average | 138 773 118 | 138 566 355 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CHANGE IN EQUITY 2008 |
--------------------------------------------------------------------------------
| EUR million | Attributable to shareholders of the parent |
--------------------------------------------------------------------------------
| | Share | Share | Fair | Trans | Re- | Total | Minor |
| | ca- | prem | v | la | tai | | ity |
| | pi | . | alue | t | ned | | in |
| | tal | act | and | ion | ear | | t. |
| | | . | other | d | n- | | |
| | | | reser | iff. | ings | | |
| | | | ves | | | | |
--------------------------------------------------------------------------------
| EQUITY AT 31 | 238 | 220 | 9 | -6 | 1 498 | 1 960 | 3 |
| DEC 2007 | | | | | | | |
--------------------------------------------------------------------------------
| Cash flow | | | -46 | | | -46 | |
| hedges, net of | | | | | | | |
| tax | | | | | | | |
--------------------------------------------------------------------------------
| Actuarial | | | | | -46 | -46 | |
| gains and | | | | | | | |
| losses, net of | | | | | | | |
| tax | | | | | | | |
--------------------------------------------------------------------------------
| Change in | | | | -31 | -23 | -54 | |
| translation | | | | | | | |
| difference | | | | | | | |
--------------------------------------------------------------------------------
| Net income and | 0 | 0 | -46 | -31 | -69 | -146 | 0 |
| expense booked | | | | | | | |
| direct to | | | | | | | |
| equity | | | | | | | |
--------------------------------------------------------------------------------
| Profit for the | | | | | 406 | 406 | -1 |
| period | | | | | | | |
--------------------------------------------------------------------------------
| Total income | 0 | 0 | -46 | -31 | 337 | 261 | -1 |
| and expense | | | | | | | |
| recognised for | | | | | | | |
| the period | | | | | | | |
--------------------------------------------------------------------------------
| Share-based | | | 0 | | 0 | 0 | |
| payments, net | | | | | | | |
| of tax | | | | | | | |
--------------------------------------------------------------------------------
| Disposal of | | | 0 | | 0 | 0 | |
| treasury | | | | | | | |
| shares | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | -277 | -277 | 0 |
| distribution | | | | | | | |
--------------------------------------------------------------------------------
| Other change | | | | | 4 | 4 | |
--------------------------------------------------------------------------------
| EQUITY AT 31 | 238 | 220 | -37 | -36 | 1 562 | 1 948 | 2 |
| DEC 2008 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CHANGE IN EQUITY 2007 |
--------------------------------------------------------------------------------
| EUR million | Attributable to shareholders of the parent |
--------------------------------------------------------------------------------
| | Share | Share | Fair | Trans | Re- | Total | Minor |
| | ca- | prem | v | la | tai | | ity |
| | pi | . | alue | t | ned | | in |
| | tal | act | and | ion | ear | | t. |
| | | . | other | d | n- | | |
| | | | reser | iff. | ings | | |
| | | | ves | | | | |
--------------------------------------------------------------------------------
| EQUITY AT 1 | 238 | 220 | 44 | -3 | 1 326 | 1 825 | 1 |
| JAN | | | | | | | |
--------------------------------------------------------------------------------
| Cash flow | | | -33 | | | -33 | |
| hedges, net of | | | | | | | |
| tax | | | | | | | |
--------------------------------------------------------------------------------
| Actuarial | | | | | -16 | -16 | |
| gains and | | | | | | | |
| losses, net of | | | | | | | |
| tax | | | | | | | |
--------------------------------------------------------------------------------
| Change in | | | 0 | -3 | 3 | 1 | |
| translation | | | | | | | |
| difference | | | | | | | |
--------------------------------------------------------------------------------
| Net income and | 0 | 0 | -32 | -3 | -13 | -48 | 0 |
| expense booked | | | | | | | |
| direct to | | | | | | | |
| equity | | | | | | | |
--------------------------------------------------------------------------------
| Profit for the | | | | | 458 | 458 | 1 |
| period | | | | | | | |
--------------------------------------------------------------------------------
| Total income | 0 | 0 | -32 | -3 | 445 | 410 | 1 |
| and expense | | | | | | | |
| recognised for | | | | | | | |
| the period | | | | | | | |
--------------------------------------------------------------------------------
| Share-based | | | 0 | | 0 | 0 | |
| payments, net | | | | | | | |
| of tax | | | | | | | |
--------------------------------------------------------------------------------
| Disposal of | | | -3 | | 3 | 0 | |
| treasury | | | | | | | |
| shares | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | -276 | -276 | |
| distribution | | | | | | | |
--------------------------------------------------------------------------------
| Acquisition of | | | | | | | 1 |
| subsidiaries | | | | | | | |
--------------------------------------------------------------------------------
| EQUITY AT 31 | 238 | 220 | 9 | -6 | 1 498 | 1 960 | 3 |
| DEC | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE |
--------------------------------------------------------------------------------
| EUR million | 2008 | 2007 |
--------------------------------------------------------------------------------
| Profit for the period | 406 | 459 |
--------------------------------------------------------------------------------
| Cash flow hedges, net of tax | -46 | -33 |
--------------------------------------------------------------------------------
| Translation differences | -54 | 1 |
--------------------------------------------------------------------------------
| Defined benefit plan actuarial gains (losses), | -46 | -16 |
| net of tax | | |
--------------------------------------------------------------------------------
| Net income and expense booked direct to equity | -146 | -48 |
--------------------------------------------------------------------------------
| Total recognised income and expense for the | 261 | 411 |
| period | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Recognised income and expense attributable to | -1 | 1 |
| minority interests during the period | | |
--------------------------------------------------------------------------------
| Recognised income and expense attributable to | 262 | 410 |
| shareholders during the period | | |
--------------------------------------------------------------------------------
| Total recognised income and expense for the | 261 | 411 |
| period | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES BY DIVISION |
--------------------------------------------------------------------------------
| EUR million | 2008 | 2007 | 2008 | 2007 |
| | | | compara | comparab |
| | | | ble | le |
--------------------------------------------------------------------------------
| Ruukki Construction | 1 067 | 1 042 | 1 067 | 1 042 |
--------------------------------------------------------------------------------
| Ruukki Engineering | 765 | 667 | 765 | 667 |
--------------------------------------------------------------------------------
| Ruukki Metals | 2 019 | 2 168 | 1 997 | 2 035 |
--------------------------------------------------------------------------------
| Corporate management | 0 | 0 | 0 | 0 |
| and other units | | | | |
--------------------------------------------------------------------------------
| Consolidated net sales | 3 851 | 3 876 | 3 829 | 3 744 |
--------------------------------------------------------------------------------
| Comparable = excluding Ruukki Betonstahl GmbH, Ruukki Welbond BV and Carl |
| Froh GmbH. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OPERATING PROFIT BY DIVISION |
--------------------------------------------------------------------------------
| EUR million | 2008 | 2007 | 2008 | 2007 |
| | | | comparab | comparab |
| | | | le* | le* |
--------------------------------------------------------------------------------
| Ruukki Construction | 128 | 163 | 132 | 163 |
--------------------------------------------------------------------------------
| Ruukki Engineering | 126 | 103 | 128 | 103 |
--------------------------------------------------------------------------------
| Ruukki Metals | 338 | 397 | 350 | 395 |
--------------------------------------------------------------------------------
| Corporate management | -25 | -25 | -25 | -25 |
| and other units | | | | |
--------------------------------------------------------------------------------
| Consolidated operating | 568 | 637 | 584 | 635 |
| profit | | | | |
--------------------------------------------------------------------------------
| Comparable = excluding Ruukki Betonstahl GmbH, Ruukki Welbond BV and Carl |
| Froh GmbH. |
| * Excluding non-recurring items. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| QUARTERLY NET SALES |
--------------------------------------------------------------------------------
| EUR million | Q1/ | Q2/ | Q3/ | Q4/ | Q1/ | Q2/ | Q3/ | Q4/ |
| | 07 | 07 | 07 | 0 | 0 | 0 | 0 | 08 |
| | | | | 7 | 8 | 8 | 8 | |
--------------------------------------------------------------------------------
| Ruukki | 213 | 258 | 278 | 292 | 225 | 285 | 309 | 248 |
| Construction | | | | | | | | |
--------------------------------------------------------------------------------
| Ruukki | 167 | 163 | 157 | 180 | 188 | 205 | 184 | 187 |
| Engineering | | | | | | | | |
--------------------------------------------------------------------------------
| Ruukki Metals | 570 | 588 | 500 | 509 | 525 | 580 | 503 | 412 |
--------------------------------------------------------------------------------
| Corporate | 0 | 0 | 0 | 0 | 1 | -1 | 0 | 0 |
| management and | | | | | | | | |
| other units | | | | | | | | |
--------------------------------------------------------------------------------
| Consolidated | 950 | 1 | 935 | 982 | 939 | 1 069 | 996 | 847 |
| net sales | | 009 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| QUARTERLY OPERATING PROFIT |
--------------------------------------------------------------------------------
| EUR million | Q1/ | Q2/ | Q3/ | Q4/ | Q1/ | Q2/ | Q3/ | Q4/ |
| | 07 | 07 | 07 | 07 | 0 | 0 | 0 | 08 |
| | | | | | 8 | 8 | 8 | |
--------------------------------------------------------------------------------
| Ruukki | 34 | 40 | 51 | 38 | 21 | 38 | 56 | 13 |
| Construction | | | | | | | | |
--------------------------------------------------------------------------------
| Ruukki | 32 | 27 | 25 | 18 | 32 | 35 | 34 | 26 |
| Engineering | | | | | | | | |
--------------------------------------------------------------------------------
| Ruukki Metals | 117 | 115 | 96 | 68 | 97 | 100 | 112 | 29 |
--------------------------------------------------------------------------------
| Corporate | -6 | -5 | -10 | -5 | -7 | -7 | -5 | -6 |
| management and | | | | | | | | |
| other units | | | | | | | | |
--------------------------------------------------------------------------------
| Consolidated | 178 | 178 | 162 | 120 | 143 | 166 | 197 | 62 |
| operating | | | | | | | | |
| profit | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| QUARTERLY NET SALES (COMPARABLE) EXCLUDING RUUKKI BETONSTAHL, RUUKKI WELBOND |
| and CARL FROH |
--------------------------------------------------------------------------------
| EUR million | Q1/ | Q2/ | Q3/ | Q4/ | Q1/ | Q2/ | Q3/ | Q4/ |
| | 07 | 07 | 07 | 0 | 0 | 0 | 0 | 08 |
| | | | | 7 | 8 | 8 | 8 | |
--------------------------------------------------------------------------------
| Ruukki | 213 | 258 | 278 | 292 | 225 | 285 | 309 | 248 |
| Construction | | | | | | | | |
--------------------------------------------------------------------------------
| Ruukki | 167 | 163 | 157 | 180 | 188 | 205 | 184 | 187 |
| Engineering | | | | | | | | |
--------------------------------------------------------------------------------
| Ruukki Metals | 531 | 552 | 464 | 488 | 511 | 571 | 503 | 412 |
--------------------------------------------------------------------------------
| Corporate | 0 | 0 | 0 | 0 | 1 | -1 | 0 | 0 |
| management and | | | | | | | | |
| other units | | | | | | | | |
--------------------------------------------------------------------------------
| Consolidated | 911 | 973 | 899 | 960 | 925 | 1 060 | 996 | 847 |
| net sales | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| QUARTERLY OPERATING PROFIT (COMPARABLE) EXCLUDING RUUKKI BETONSTAHL, RUUKKI |
| WELBOND and CARL FROH AND EXCLUDING NON-RECURRING ITEMS |
--------------------------------------------------------------------------------
| EUR million | Q1/ | Q2/ | Q3/ | Q4/ | Q1/ | Q2/ | Q3/ | Q4/ |
| | 07 | 07 | 07 | 0 | 0 | 0 | 0 | 08 |
| | | | | 7 | 8 | 8 | 8 | |
--------------------------------------------------------------------------------
| Ruukki | 34 | 40 | 51 | 38 | 21 | 38 | 56 | 17 |
| Construction | | | | | | | | |
--------------------------------------------------------------------------------
| Ruukki | 32 | 27 | 25 | 18 | 32 | 35 | 34 | 27 |
| Engineering | | | | | | | | |
--------------------------------------------------------------------------------
| Ruukki Metals | 116 | 115 | 96 | 68 | 96 | 106 | 112 | 36 |
--------------------------------------------------------------------------------
| Corporate | -6 | -5 | -10 | -5 | -7 | -7 | -5 | -6 |
| management and | | | | | | | | |
| other units | | | | | | | | |
--------------------------------------------------------------------------------
| Consolidated | 177 | 178 | 162 | 119 | 141 | 172 | 197 | 74 |
| operating | | | | | | | | |
| profit | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES BY REGION |
--------------------------------------------------------------------------------
| As % of net sales | 2008 | 2007 |
--------------------------------------------------------------------------------
| Finland | 32 | 31 |
--------------------------------------------------------------------------------
| Other Nordic countries | 31 | 30 |
--------------------------------------------------------------------------------
| Central Eastern Europe, | 21 | 21 |
| Russia and Ukraine | | |
--------------------------------------------------------------------------------
| Rest of Europe | 13 | 15 |
--------------------------------------------------------------------------------
| Other countries | 3 | 3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONTINGENT LIABILITIES |
--------------------------------------------------------------------------------
| EUR million | Dec 08 | Dec 07 |
--------------------------------------------------------------------------------
| Mortgaged real estates | 24 | 24 |
--------------------------------------------------------------------------------
| Pledges given | 5 | 5 |
--------------------------------------------------------------------------------
| Other guarantees given | 45 | 41 |
--------------------------------------------------------------------------------
| Collateral given on behalf of others | 2 | 6 |
--------------------------------------------------------------------------------
| Rental liabilities | 132 | 154 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| VALUES OF DERIVATIVE CONTRACTS AT 31 DECEMBER 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOW HEDGES QUALIFYING FOR HEDGE ACCOUNTING |
--------------------------------------------------------------------------------
| | Nominal amount | Fair value, |
| | | EUR |
| | | million |
--------------------------------------------------------------------------------
| Zinc derivatives | | |
--------------------------------------------------------------------------------
| Forward contracts, tonnes | 35 500 | -34 |
--------------------------------------------------------------------------------
| Electricity derivatives | | |
--------------------------------------------------------------------------------
| Forward contracts, Gwh | 1 903 | -18 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOW HEDGES NOT QUALIFYING FOR HEDGE ACCOUNTING |
--------------------------------------------------------------------------------
| | Nominal amount | Fair value, |
| | | EUR |
| | | million |
--------------------------------------------------------------------------------
| Zinc derivatives | | |
--------------------------------------------------------------------------------
| Forward contracts, tonnes | 500 | 0 |
--------------------------------------------------------------------------------
| Foreign currency derivatives, | | |
| EUR m | | |
--------------------------------------------------------------------------------
| Forward contracts | 904 | 35 |
--------------------------------------------------------------------------------
| Options | | |
--------------------------------------------------------------------------------
| Bought | 120 | 9 |
--------------------------------------------------------------------------------
| Sold | 120 | 2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| VALUES OF DERIVATIVE CONTRACTS AT 31 DECEMBER 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOW HEDGES QUALIFYING FOR HEDGE ACCOUNTING |
--------------------------------------------------------------------------------
| | Nominal amount | Fair value, |
| | | EUR |
| | | million |
--------------------------------------------------------------------------------
| Zinc derivatives | | |
--------------------------------------------------------------------------------
| Forward contracts, tonnes | 30 000 | -1 |
--------------------------------------------------------------------------------
| Electricity derivatives | | |
--------------------------------------------------------------------------------
| Forward contracts, Gwh | 1 136 | 12 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOW HEDGES NOT QUALIFYING FOR HEDGE ACCOUNTING |
--------------------------------------------------------------------------------
| | Nominal amount | Fair value, |
| | | EUR |
| | | million |
--------------------------------------------------------------------------------
| Interest rate derivatives | | |
--------------------------------------------------------------------------------
| Interest rate swaps | 25 | 0 |
--------------------------------------------------------------------------------
| Foreign currency derivatives, | | |
| EUR m | | |
--------------------------------------------------------------------------------
| Forward contracts | 601 | -3 |
--------------------------------------------------------------------------------
| Options | | |
--------------------------------------------------------------------------------
| Bought | 140 | -1 |
--------------------------------------------------------------------------------
| Sold | 140 | -4 |
--------------------------------------------------------------------------------
The unrealised result of cash flow hedges is recognised in equity to the extent
the hedge is effective. Other changes in fair value are recorded through profit
and loss.
--------------------------------------------------------------------------------
| CHANGES IN PROPERTY, PLANT AND EQUIPMENT |
--------------------------------------------------------------------------------
| EUR million | 2008 | 2007 |
--------------------------------------------------------------------------------
| Carrying value at start of period | 1 076 | 1 043 |
--------------------------------------------------------------------------------
| Additions | 215 | 157 |
--------------------------------------------------------------------------------
| Additions through acquisitions | 8 | 18 |
--------------------------------------------------------------------------------
| Disposals | -8 | -11 |
--------------------------------------------------------------------------------
| Disposals through divestments | -22 | 0 |
--------------------------------------------------------------------------------
| Depreciation and value adjustments | -119 | -129 |
--------------------------------------------------------------------------------
| Exchange rate differences | -26 | -1 |
--------------------------------------------------------------------------------
| Carrying value at end of period | 1 124 | 1 076 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TRANSACTIONS WITH RELATED PARTIES |
--------------------------------------------------------------------------------
| EUR million | 2008 | 2007 |
--------------------------------------------------------------------------------
| Transactions with associates | | |
--------------------------------------------------------------------------------
| Sales to associates | 30 | 23 |
--------------------------------------------------------------------------------
| Purchases from associates | 6 | 7 |
--------------------------------------------------------------------------------
| Trade and other receivables at end of | 5 | 6 |
| period | | |
--------------------------------------------------------------------------------
| Transactions with Pension Foundation | 6 | 6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| INVESTMENT COMMITMENTS |
--------------------------------------------------------------------------------
| EUR million | After 31 Dec | After 31 Dec |
| | 2008 | 2007 |
--------------------------------------------------------------------------------
| Maintenance investments | 102 | 123 |
--------------------------------------------------------------------------------
| Development investments and | 113 | 196 |
| investments in special products | | |
--------------------------------------------------------------------------------
| Total | 215 | 320 |
--------------------------------------------------------------------------------
| Investment commitments include the estimated costs of projects that have |
| received permission to go ahead. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| INFORMATION ABOUT ACQUISITIONS | | |
--------------------------------------------------------------------------------
| EUR million | Fair | Carrying |
| | values | values |
| | booked on | before |
| | combination | combi |
| | | nation |
--------------------------------------------------------------------------------
| Assets and liabilities of acquired | | |
| companies | | |
--------------------------------------------------------------------------------
| Non-current assets | 8 | 1 |
--------------------------------------------------------------------------------
| Current assets | | |
--------------------------------------------------------------------------------
| Inventories | 0 | 0 |
--------------------------------------------------------------------------------
| Trade and other receivables | 3 | 3 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 2 | 2 |
--------------------------------------------------------------------------------
| Total assets | 12 | 5 |
--------------------------------------------------------------------------------
| Non-current liabilities | | |
--------------------------------------------------------------------------------
| Interest-bearing | 0 | 0 |
--------------------------------------------------------------------------------
| Other | 1 | 0 |
--------------------------------------------------------------------------------
| Current liabilities | | |
--------------------------------------------------------------------------------
| Interest-bearing | 0 | 0 |
--------------------------------------------------------------------------------
| Other | 2 | 2 |
--------------------------------------------------------------------------------
| Total liabilities | 3 | 2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net assets | 9 | 3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Acquisition cost | 15 | |
--------------------------------------------------------------------------------
| - including conditional purchase | 4 | |
| price | | |
--------------------------------------------------------------------------------
| Goodwill | 6 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Acquisition cost paid in cash | 11 | |
--------------------------------------------------------------------------------
| Cash and cash equivalents of | 2 | |
| acquired subsidiary | | |
--------------------------------------------------------------------------------
| Impact on cash flow | 10 | |
--------------------------------------------------------------------------------
| Includes information about the acquisition of Wolter Metallverarbeitung |
| GmbH, UAB Gensina and the business of Hybri-Steel Oy. |
--------------------------------------------------------------------------------
CHANGES IN ACCOUNTING PRINCIPLES
Until 2008, the company applied the 'corridor method' to recognise actuarial
gains and losses relating to its defined benefit pension plans. This meant that
actuarial gains and losses were expensed over the assumed average remaining
working lives of people in the plan.
From 1 January 2008, the company has applied an alternative interpretation of
IAS 19 Employee Benefits, which allows all actuarial gains and losses to be
booked direct to equity in the period in which they occur instead of in the
income statement. The comparable figures have been restated accordingly. The
change in accounting principle decreased equity, net of tax, by EUR 24 million
at 31 December 2007 (EUR 7 million at year-end 2006).
The company has changed the IFRS interpretation of the Finnish disability
benefit from a defined contribution plan to a defined benefit plan with effect
from 1 January 2008. This change increased IFRS pension costs by an estimated
EUR 6 million in 2008. The ensuing actuarial loss as a result of this change was
recognised as a decrease in equity in accordance with the accounting practice
referred to above. The change decreased equity, net of tax, by EUR 34 million.
The change marks a shift to using the interpretation applied by the majority of
Finnish companies on the market preparing financial statements in accordance
with IFRS.
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET | 31 Dec 2007 | 31 Dec 2007 | 1 Jan 2008 |
--------------------------------------------------------------------------------
| | published | restated* | restated** |
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| Non-current assets | 1 473 | 1 447 | 1 400 |
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 614 | 614 | 614 |
--------------------------------------------------------------------------------
| Trade and other receivables | 579 | 579 | 579 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 196 | 196 | 196 |
--------------------------------------------------------------------------------
| | 2 861 | 2 835 | 2 789 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | |
--------------------------------------------------------------------------------
| Equity | | | |
--------------------------------------------------------------------------------
| Equity attributable to | 1 984 | 1 960 | 1 925 |
| shareholders of the parent | | | |
--------------------------------------------------------------------------------
| Minority interests | 3 | 3 | 3 |
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 138 | 138 | 138 |
--------------------------------------------------------------------------------
| Other non-current liabilities | 191 | 189 | 177 |
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 86 | 86 | 86 |
--------------------------------------------------------------------------------
| Trade payables and other | 460 | 460 | 460 |
| liabilities | | | |
--------------------------------------------------------------------------------
| | 2 861 | 2 835 | 2 789 |
--------------------------------------------------------------------------------
* Change concerning the recognition of actuarial gains and losses.
** Change concerning the interpretation of disability.
Formulas for the calculation of key indicators:
--------------------------------------------------------------------------------
| Return on capital | = | profit/loss before taxes + finance | x100 |
| employed, % | | expense | |
| | | -------------------------------- | |
| | | ----------- | |
--------------------------------------------------------------------------------
| | | total equity + interest-bearing | |
| | | financial liabilities (average at | |
| | | beginning and end of period) | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on equity, % | = | profit before taxes - | x100 |
| | | taxes | |
| | | ---------------------------------- | |
| | | --------- | |
--------------------------------------------------------------------------------
| | | total equity (average at beginning and | |
| | | end of period) | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity ratio, % | = | total | x100 |
| | | equity | |
| | | --------------------------------- | |
| | | ----------- | |
--------------------------------------------------------------------------------
| | | balance sheet total - advances received | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gearing ratio, % | = | net interest-bearing financial | x100 |
| | | liabilities | |
| | | ---------------------------- | |
| | | ---------------- | |
--------------------------------------------------------------------------------
| | | total equity | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net | = | interest-bearing financial liabilities - | |
| interest-bearing | | interest-bearing financial assets and | |
| financial | | other cash and cash equivalents | |
| liabilities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share | = | profit or loss attributable to equity | |
| (EPS) | | holders of the parent | |
| | | company | |
| | | -------------------------------- | |
| | | ------------ | |
--------------------------------------------------------------------------------
| | | average number of shares outstanding | |
| | | during the period | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share | = | profit or loss attributable to equity | |
| (EPS), diluted | | holders of the | |
| | | parent | |
| | | --------------------------------- | |
| | | ----------- | |
--------------------------------------------------------------------------------
| | | average diluted number of shares | |
| | | outstanding during the period | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity per share | = | equity attributable to equity holders of | |
| | | the | |
| | | parent | |
| | | company | |
| | | -------------------------------- | |
| | | ------------- | |
--------------------------------------------------------------------------------
| | | basic number of shares at the balance | |
| | | sheet date | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average share price | = | total EUR trading of shares during the | |
| | | period | |
| | | --------------------------------- | |
| | | ------------ | |
--------------------------------------------------------------------------------
| | | average basic number of shares traded | |
| | | during the period | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Market | = | basic number of shares at the end of the | |
| capitalisation | | financial period x trading price at the | |
| | | end of the financial period | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Personnel, average | = | average number of personnel at the end | |
| | | of each month during the period | |
--------------------------------------------------------------------------------
News Source: NASDAQ OMX
05.02.2009 Financial News transmitted by DGAP
----------------------------------------------------------------------
Language: English
Issuer: Rautaruukki
Finland
Phone:
Fax:
E-mail:
Internet:
ISIN: FI0009003552
WKN:
End of News DGAP News-Service
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