Rautaruukki Reports Results

Demand for steel products weakened during the first nine months of 2001, but Rautaruukki's turnover increased 12 percent and its profits held steady.

Rautaruukki's deliveries of flat and tubular products were up four percent and the average price of deliveries in euros was three percent higher compared with the same period a year earlier. Prices of nearly all products fell but the average price improved thanks to the increase in the degree of upgrading. Third-quarter deliveries contracted by 11 percent on the second quarter owing to annual holiday and maintenance shutdowns. The average price of deliveries was at the same level as in the second quarter.

Deliveries of long steel products were up 11 percent and their euro-denominated average price was seven percent higher than in the same period of last year.

Net of the effect of Nedstaal, which Fundia acquired at the beginning of the year, deliveries and the average price of them were at last year's level.

Consumption of steel products in Europe is estimated to be somewhat below last year's figure. Steel output in the EU countries and stocks of steel products have diminished to some extent but are still high. The forecast is for a further fall in prices of steel products in Europe. Rautaruukki's turnover in 2001 is estimated to reach $2.5 billion.

Because of the weakened market situation the result in the last quarter of the year is estimated to be slightly in the red and full-year profit before extraordinary items and taxes will come in below last year's. Rautaruukki Steel will step up its steel output, thereby reducing the use of purchased slabs.

Other stories from February 2002 issue

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