Interim report for January-June 2010: Order int...

Rautaruukki Corporation Interim report 16 July 2010 at 9.00 EEST

First half of 2010 in brief (reference period January-June 2009)
  *       Order intake during January-June worth EUR 1,103 million, up around
    26 per cent year on year.
  *       Order intake during the second quarter was EUR 596 million, up 33 per
    cent year on year.
  *       Consolidated comparable net sales for January-June up 26 per cent at
    EUR 1,147 million (911).
  *       Comparable net sales for second quarter up 50 per cent year on year at
    EUR 647 million (430).
  *       Consolidated comparable operating profit for January-June was EUR 26
    million (-215), equating to 2.2 per cent of net sales (-23.6).
  *       Comparable operating profit for second quarter was EUR 59 million
    (-106), equating to 9.2 per cent of net sales (-24.6), including EUR 25
    million arising from USD hedging.
  *       Result before income tax for January-June was -EUR 16 million (-249),
    equating to -1.3 per cent of net sales (-26.4).
  *       Result before income tax for second quarter was EUR 28 million (-127),
    equating to 4.3 per cent of net sales (-29.1).
  *       Net sales in 2010 are estimated to grow 25-30 per cent year on year
    (previous estimate 15-20 per cent). Profitability is expected to improve
    significantly compared to the previous year and the full-year result before
    income tax is estimated to be positive.


+---------------------------------------+------+------+--------+--------+------+
|KEY FIGURES                            |      |      |        |        |      |
+---------------------------------------+------+------+--------+--------+------+
|                                       | Q2/10| Q2/09|Q1-Q2/10|Q1-Q2/09|  2009|
+---------------------------------------+------+------+--------+--------+------+
|Reported net sales, EUR m              |   655|   438|   1 160|     944| 1 950|
+---------------------------------------+------+------+--------+--------+------+
|Comparable net sales, EUR m            |   647|   430|   1 147|     911| 1 901|
+---------------------------------------+------+------+--------+--------+------+
|Reported operating profit, EUR m       |    34|  -117|      -2|    -230|  -323|
+---------------------------------------+------+------+--------+--------+------+
|Comparable operating profit, EUR m     |    59|  -106|      26|    -215|  -288|
+---------------------------------------+------+------+--------+--------+------+
|Comparable operating profit as % of net|   9.2| -24.6|     2.2|   -23.6| -15.2|
|sales                                  |      |      |        |        |      |
+---------------------------------------+------+------+--------+--------+------+
|Result before income tax, EUR m        |    28|  -127|     -16|    -249|  -359|
+---------------------------------------+------+------+--------+--------+------+
|Net cash flow before financing         |   -38|   -36|    -125|      -6|    30|
|activities, EUR m                      |      |      |        |        |      |
+---------------------------------------+------+------+--------+--------+------+
|Earnings per share, EUR                |  0.14| -0.68|   -0.09|   -1.33| -1.98|
+---------------------------------------+------+------+--------+--------+------+
|Return on capital employed (rolling 12 |      |      |    -4.4|     1.9| -14.2|
|mths), %                               |      |      |        |        |      |
+---------------------------------------+------+------+--------+--------+------+
|Gearing ratio, %                       |      |      |    35.9|    22.9|  22.3|
+---------------------------------------+------+------+--------+--------+------+
|Personnel on average                   |11 632|12 870|  11 733|  13 165|12 664|
+---------------------------------------+------+------+--------+--------+------+




President & CEO Sakari Tamminen:

"The global economy and industrial production continued growing during the
second quarter. Private investment demand though was still modest in most of the
countries in which Ruukki operates. However, our delivery volumes and selling
prices showed favourable development and our comparable net sales were 50 per
cent up year on year. Cost savings made and a more favourable business
environment than earlier have resulted in a further improvement in our
profitability, although this was mainly in the steel business. During the second
quarter, USD hedging had a positive impact of EUR 25 million on profit and
loss and, in addition, still relatively moderate product costs improved the
profitability of the steel business.

The encouraging improvement in the business environment can be seen not only in
the steel business, but also in the number of new orders in construction and, to
some extent, also in the engineering business. Our order intake during the
second quarter was almost EUR 600 million. Although this is up by a third
compared to a year earlier, we are still far short of order volumes during our
best years.

Orders in the construction business were up by more than a fifth during the
second quarter compared to last year. However, commercial and industrial
construction, our largest segment in construction in terms of net sales,
remained modest. On the other hand, in Russia and Central Eastern Europe,
especially in Poland and the Czech Republic, the order intake rate in this
sector began to improve during the second quarter. Strong net sales growth in
infrastructure construction continued as a result of Nordic road and railway
projects and active deliveries of piles for foundation construction. On top of
this, there was also continued good demand for roofing products in residential
construction.

The activity of many of our customer industries in the engineering business
improved, but was still at a clearly lower level than a couple of years ago.
During the second quarter, order flows from customers of cabins for mobile
machines and from frame and boom component customers grew somewhat. Activity in
the manufacture of equipment for the energy industry was low, but picked up
slightly for wind power towards the end of the report period. The capacity
utilisation rate in the engineering business was still low. To improve
operational efficiency, we have developed the manufacturing network of our
engineering business especially in Central Eastern Europe and China.

Delivery volumes and selling prices in the steel business gave momentum to the
increase in consolidated operating profit. Our strong focus on special steel
products competence can be clearly seen in our steel business and sales of
special steel products showed good development. Demand for special steel
products was good in a number of sectors - including the manufacture of
equipment for the mining industry and in the heavy vehicle industry - as well as
in our new markets in China, Turkey and Brazil.

Our cost competitiveness is now much healthier than in previous years. Our
actions to improve efficiency have progressed much faster than planned and we
estimate the actions we have already initiated to date will result in an
annualised improvement of EUR 149 million in the company's operating profit. We
will continue improving our cost efficiency. During the current year we will
especially focus on strengthening sales and marketing.

Based on a number of indicators, economic growth is expected to continue in our
main market areas. However, there are also factors that give cause for concern
as regards continued growth. As a result of higher delivery volumes and selling
prices, we have raised out net sales forecast for this year. We also estimate
that product costs will rise higher than previously forecast. We estimate net
sales in 2010 to grow 25-30 per cent year on year (previous estimate 15-20 per
cent). Profitability is expected to improve significantly compared to the
previous year and the full-year result before income tax is estimated to be
positive"


For further information, please contact:
Sakari Tamminen, President & CEO, tel. [phone]
Mikko Hietanen, CFO, tel. [phone]

A press conference, in English, for analysts and the media will be held on 16
July 2010 at 10.30 Ruukki, Suolakivenkatu 1, 00810 Helsinki.

A live webcast of the conference and presentation by the company's President &
CEO Sakari Tamminen may be followed online on the company's website at
www.ruukki.com/investors. The event can also be attended through a conference
call. To attend the conference call, please call the following number 5-10
minutes before the scheduled start time: [phone], password:
Rautaruukki Corporation

A replay of the webcast can be viewed on the company's website from
approximately 16.00. An encore replay of the conference call will be available
until 23 July 2010 at [phone], access code: 868002


Rautaruukki Corporation
Anne Pirilä
SVP, 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 27 countries and
employs 11,700 people. Net sales in 2009 totalled EUR 2.0 billion. The company's
share is quoted on NASDAQ OMX Helsinki (Rautaruukki Oyj: RTRKS). The Corporation
uses the marketing name Ruukki.


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



RAUTARUUKKI CORPORATION'S INTERIM REPORT FOR JANUARY-JUNE 2010


Business environment

Recovery of the global economy continued during the second quarter of the year
mainly on the back of brisk growth in the emerging economies. Economic growth in
Europe remained slower than in the rest of the world. A culmination of the Greek
debt crisis in particular fuelled uncertainty on the financial markets. However,
the impact of this increased uncertainty seems to have been contained for now
since bailout packages from other euro-zone countries and the International
Monetary Fund, together with austerity programmes announced by countries with
high debts, have calmed the markets.

A number of indicators show that also in Europe economic growth picked up
slightly during the second quarter. In Finland, economic development improved
more slowly than in the rest of Europe even though international demand picked
up and a weaker euro helped exports. Industrial production continued growing,
but private investment demand was still modest in most of the countries in which
Ruukki operates.

Weak investment demand kept demand for commercial and industrial construction in
particular relatively quiet. There were signs of private investments picking up
in Russia during the second quarter and at Ruukki this was reflected in
increased tendering activity. Seasonal demand for residential roofing products
rose sharply in all Ruukki's market areas during the second quarter. Road and
railway construction in the Nordic countries continued at a good level during
April-June.

In the engineering industry, order flows of Ruukki's main customers grew during
the early part of the year, even though they were still at a low level compared
to previous years. Demand continued to pick up especially in the manufacture of
mining and forest machinery and materials handling equipment. In the wind power
industry, funding difficulties of new wind farm projects have temporarily
weakened demand, although towards the end of the second quarter investment
activity increased. Market conditions remained weak in shipbuilding.

In the steel industry, demand in Europe is still at a fairly low level despite
continuing recovery during the second quarter. Monthly crude steel production in
the EU-27 region still grew somewhat during April-May compared to the level in
the first quarter of the year. In Finland, capital goods account for a large
share of overall steel consumption and consequently demand in Finland recovered
much more slowly than in many other countries. Stock levels of steel wholesalers
in Europe during April-May grew at the same rate as sales. In other words,
stocks grew in line with real demand.


Order intake and backlog

The company's order intake during the second quarter was EUR 596 million, which
is 33 per cent higher year on year and 18 per cent higher quarter on quarter.
Order flow in the steel business developed particularly well compared to the
previous year. Order flow in Central Eastern Europe and Russia showed highest
relative growth corporate-wide. Compared to the first quarter of the year, the
highest growth in order intake was in residential roofing products and
infrastructure construction products and components within the construction
business.

Order backlog at the end of the report period was somewhat higher compared to
June 2009 and at about the same level as at the end of March 2010.


Net sales

Unless otherwise stated, the figures in brackets refer to the same period a year
earlier.

Consolidated comparable net sales for the second quarter were EUR 647 million
(430), up 50 per cent year on year. Higher comparable net sales were
attributable especially to larger delivery volumes of steel products. Reported
net sales were EUR 655 million (438). The impact of Ruukki Engineering's Mo i
Rana unit in Norway has been eliminated from comparable net sales. Operations at
the Mo i Rana unit were discontinued in mid-May until further notice.

Consolidated comparable net sales for January-June 2010 were EUR 1,147 million
(911) and reported net sales EUR 1,160 million (944). The solutions businesses -
Ruukki Construction and Ruukki Engineering - accounted for 32 per cent (49) of
consolidated comparable net sales.


+-----------------------------------------+-----+-----+--------+--------+-----+
|NET SALES BY BUSINESS AREA               |     |     |        |        |     |
+-----------------------------------------+-----+-----+--------+--------+-----+
|EUR million                              |Q2/10|Q2/09|Q1-Q2/10|Q1-Q2/09| 2009|
+-----------------------------------------+-----+-----+--------+--------+-----+
|Comparable net sales                     |     |     |        |        |     |
+-----------------------------------------+-----+-----+--------+--------+-----+
|Ruukki Construction                      |  163|  145|     272|     278|  589|
+-----------------------------------------+-----+-----+--------+--------+-----+
|Ruukki Engineering                       |   50|   67|      92|     167|  263|
+-----------------------------------------+-----+-----+--------+--------+-----+
|Ruukki Metals                            |  434|  218|     782|     467|1 050|
+-----------------------------------------+-----+-----+--------+--------+-----+
|Corporate management                     |    1|    0|       1|       0|    0|
+-----------------------------------------+-----+-----+--------+--------+-----+
|Comparable net sales, total              |  647|  430|   1 147|     911|1 901|
+-----------------------------------------+-----+-----+--------+--------+-----+
|Items affecting comparability included in|    7|    8|      13|      33|   49|
|reported net sales                       |     |     |        |        |     |
+-----------------------------------------+-----+-----+--------+--------+-----+
|Reported net sales                       |  655|  438|   1 160|     944|1 950|
+-----------------------------------------+-----+-----+--------+--------+-----+



Consolidated comparable net sales for the second quarter rose year on year in
all market areas. Net sales in the company's new market areas showed the
strongest relative net sales development and net sales from areas outside Europe
accounted for 9 per cent (3) of the company's comparable net sales. Finland
accounted for 26 per cent (33).


+-----------------------------------------+-----+-----+--------+--------+-----+
|NET SALES BY REGION                      |     |     |        |        |     |
+-----------------------------------------+-----+-----+--------+--------+-----+
|EUR million                              |Q2/10|Q2/09|Q1-Q2/10|Q1-Q2/09| 2009|
+-----------------------------------------+-----+-----+--------+--------+-----+
|Comparable net sales                     |     |     |        |        |     |
+-----------------------------------------+-----+-----+--------+--------+-----+
|Finland                                  |  166|  142|     307|     304|  586|
+-----------------------------------------+-----+-----+--------+--------+-----+
|Other Nordic countries                   |  198|  139|     354|     305|  592|
+-----------------------------------------+-----+-----+--------+--------+-----+
|Central Eastern Europe                   |   70|   54|     114|     104|  231|
+-----------------------------------------+-----+-----+--------+--------+-----+
|Russia and Ukraine                       |   50|   32|      78|      58|  141|
+-----------------------------------------+-----+-----+--------+--------+-----+
|Rest of Europe                           |  104|   51|     204|     105|  241|
+-----------------------------------------+-----+-----+--------+--------+-----+
|Other countries                          |   59|   12|      90|      35|  110|
+-----------------------------------------+-----+-----+--------+--------+-----+
|Comparable net sales, total              |  647|  430|   1 147|     911|1 901|
+-----------------------------------------+-----+-----+--------+--------+-----+
|Items affecting comparability included in|    7|    8|      13|      33|   49|
|reported net sales                       |     |     |        |        |     |
+-----------------------------------------+-----+-----+--------+--------+-----+
|Reported net sales                       |  655|  438|   1 160|     944|1 950|
+-----------------------------------------+-----+-----+--------+--------+-----+



Operating profit

Consolidated comparable operating profit for the second quarter was EUR 59
million (-106), equating to 9.2 per cent of net sales (-24.6). Higher comparable
operating profit year on year was mainly attributable to larger delivery volumes
of steel products and an improved capacity utilisation rate in steel production.
A positive impact on profit and loss of EUR 25 million arising from USD hedging
was booked for the second quarter.

Reported operating profit for the second quarter was EUR 34 million (-117). The
items affecting comparability of reported operating profit are detailed in the
table at the end of the Summary financial statement and notes section.

Consolidated comparable operating profit for January-June was EUR 26 million
(-215), equating to 2.2 per cent of net sales (-23.6) and reported negative
operating profit was -EUR 2 million (-230).


+-----------------------------------------------+-----+--------+--------+----+
|OPERATING PROFIT BY BUSINESS AREA              |     |        |        |    |
+-----------------------------------------+-----+-----+--------+--------+----+
|EUR million                              |Q2/10|Q2/09|Q1-Q2/10|Q1-Q2/09|2009|
+-----------------------------------------+-----+-----+--------+--------+----+
|Comparable operating profit              |     |     |        |        |    |
+-----------------------------------------+-----+-----+--------+--------+----+
|Ruukki Construction                      |  -10|   -9|     -31|     -22| -49|
+-----------------------------------------+-----+-----+--------+--------+----+
|Ruukki Engineering                       |   -9|    4|     -14|      12|   2|
+-----------------------------------------+-----+-----+--------+--------+----+
|Ruukki Metals                            |   81|  -97|      77|    -199|-228|
+-----------------------------------------+-----+-----+--------+--------+----+
|Corporate management                     |   -3|   -4|      -7|      -7| -13|
+-----------------------------------------+-----+-----+--------+--------+----+
|Comparable operating profit, total       |   59| -106|      26|    -215|-288|
+-----------------------------------------+-----+-----+--------+--------+----+
|Items affecting comparability included in|  -25|  -11|     -28|     -14| -35|
|reported operating profit                |     |     |        |        |    |
+-----------------------------------------+-----+-----+--------+--------+----+
|Reported operating profit                |   34| -117|      -2|    -230|-323|
+-----------------------------------------+-----+-----+--------+--------+----+



Financial items and result

Consolidated net finance costs during January-June totalled EUR 14 million (19).
Net interest costs totalled EUR 14 million (13).

Group taxes for January-June were -EUR 3 million (-65), which includes a
decrease of EUR 8 million (61) in deferred tax.

The net result for January-June was -EUR 13 million (-184).

Earnings per share were -EUR 0.09 (-1.33)


Balance sheet, cash flow and financing

Total assets at 30 June 2010 were EUR 2,654 million (2,488). Equity at 30 June
2010 was EUR 1,446 million (1,587), equating to EUR 10.41 per share (11.43).
Equity has decreased by EUR 61 million since the end of 2009 mainly because of
the dividend payout in April.

The equity ratio at 30 June 2010 was 55.2 per cent (64.3) and the gearing ratio
was 35.9 per cent (22.9). Net interest-bearing financial liabilities at 30 June
2010 were EUR 519 million (364).

Return on equity during the past twelve months was -6.8 per cent (-0.5) and
return on capital employed was -4.4 per cent (1.9).

Net cash flow from operating activities during January-June was -EUR 41 million
(82) and net cash flow before financing activities was -EUR 125 million (-6).
EUR 47 million was tied up (EUR 215 million released) in net working capital
during the first half of the year.

During the second quarter of 2010, the company signed new long-term loan
agreements. A loan of EUR 50 million was agreed with the Nordic Investment (NIB)
and a loan of EUR 140 million with the European Investment Bank (EIB). These
loans will be used to finance the investments to modernise the blast furnaces at
the Raahe Steel Works in Finland and the environmental investments being made in
the same context.

At 30 June 2010, the group had liquid assets of EUR 141 million and untapped
committed credit limits and credit facilities of EUR 490 million.


Actions to improve operational efficiency

In October 2008, Ruukki initiated its corporate-wide Boost programme, which aims
at permanently improving the company's competitive edge and profitability. The
programme aims at an annualised improvement of EUR 150 million in the company's
operating profit. The programme has progressed faster than originally planned
and the annualised impact of actions initiated was estimated to be EUR 149
million at the end of the report period. Under the original plan, it was
estimated the benefits sought by the programme would be achieved by the end of
2011.

The largest single benefits have been achieved from the centralisation of steel
service centre operations in the Nordic countries and improved efficiency in the
supply chain and construction business.

During the second quarter, Ruukki continued to improve operational efficiency by
reorganising production at the Anderslöv site in Sweden. It is planned to
transfer the production of profiled construction products from Anderslöv to
other Ruukki units.

Operations at the Mo i Rana unit in Norway were discontinued in mid-May until
further notice. At the end of June, the company announced it was to improve the
efficiency of its engineering business by concentrating boom manufacturing. This
will mean switching boom manufacturing at the Dortmund unit in Germany to other
Ruukki units which already make booms for mobile machines. This move will result
in closure of the Dortmund unit at the end of October 2010.

Even though the EUR 150 million target in the Boost operational excellence
programme has almost been achieved, projects will continue as planned. The focus
of the programme will gradually shift away from production, sourcing and
logistics projects to especially the sales, marketing and technology fronts.


Capital expenditure

Net cash used in investing activities during January-June was -EUR 84 million
(-89).

Capital expenditure on tangible and intangible assets during the first half of
the year totalled EUR 90 million (88), of which maintenance investments
accounted for EUR 74 million (35). EUR 1 million (7) was spent on acquisitions.
Proceeds from the disposal of fixed assets amounted to EUR 8 million (9).

Depreciation during the report period was EUR 74 million (72).

Group capital expenditure on tangible and intangible assets in 2010 is expected
to be in the region of EUR 180 million.

Investments to modernise the blast furnaces and change the feedstock base total
around EUR 210 million and environmental investments being made in the same
context will total a further EUR 60 million. Around EUR 115 million of the total
investments are expected to be scheduled for 2010, around EUR 100 for 2011 and
around EUR 10 million for 2012. EUR 46 million of the investments were made
during 2009.


Personnel

The group employed an average of 11,733 persons (13,165) during January-June and
at 30 June 2010, the headcount was 12,214 (12,855). At 30 June 2010, 56 per cent
(52) of Ruukki's personnel worked in Finland. The headcount in Finland increased
due to temporary summer workers, which totalled 948 (437) at the end of June.


+-------------------+-+-+-----------+-----------+-----------+
|PERSONNEL BY REGION| | |           |           |           |
+-------------------+-+-+-----------+-----------+-----------+
|                       |30 Jun 2010|30 Jun 2009|31 Dec 2009|
+-----------------------+-----------+-----------+-----------+
|Finland                |      6 841|      6 699|      5 905|
+-----------------------+-----------+-----------+-----------+
|Other Nordic countries |        856|      1 152|      1 023|
+-----------------------+-----------+-----------+-----------+
|Central Eastern Europe |      2 059|      2 427|      2 163|
+-----------------------+-----------+-----------+-----------+
|Russia and Ukraine     |      2 087|      2 223|      2 214|
+-----------------------+-----------+-----------+-----------+
|Rest of Europe         |         94|         81|         79|
+-----------------------+-----------+-----------+-----------+
|Other countries        |        277|        273|        264|
+-----------------------+-----------+-----------+-----------+
|Total                  |     12 214|     12 855|     11 648|
+-----------------------+-----------+-----------+-----------+



Safety measured in terms of accidents per million hours worked weakened slightly
year on year during the first six months of 2010 and was 8 (7).


Shares and share capital

During the first half of the year, 109,017 thousand (114,359) Rautaruukki Oyj
shares (RTRKS) were traded on NASDAQ OMX Helsinki for a total of EUR 1,621
million (1,612). The highest price quoted was EUR 17.44 in January and the
lowest was EUR 11.97 in June. The volume weighted average price was EUR 14.86.
The share closed at EUR 12.02 (14.25) at 30 June 2010 and the company had a
market capitalisation of EUR 1,686 million (1,999).

Rautaruukki's share is also traded on multilateral trading facilities (MTF).
According to information received by the company, a total of 22,017 thousand
Rautaruukki shares were traded on multilateral trading facilities during
January-June for a total of EUR 324 million.

The company's registered share capital at 30 June 2010 was EUR 238.5 million and
there were 140,285,425 shares issued.

At 30 June 2010, the company held 1,421,575 treasury shares, which had a market
capitalisation of EUR 17.1 million and an accountable par value of EUR 2.4
million. Treasury shares accounted for 1.01 per cent of the total number of
shares and votes.

The 2009 Annual General Meeting granted the Board of Directors the authority to
decide on a share issue, which includes the right to issue new shares or to
transfer treasury shares held by the company. This authority applies to a
maximum of 15,000,000 shares in total. The Board of Directors has the right to
disapply the pre-emption right of existing shareholders. The authority also
includes the right to decide on a bonus issue. The authority is valid until the
close of the 2011 Annual General Meeting. The Board of Directors had not
exercised this authority by the end of June 2010.

The 2010 Annual General Meeting granted the Board of Directors the authority to
acquire a maximum of 12,000,000 of the company's own shares. The authority is
valid until the close of the following Annual General Meeting. The Board of
Directors had not exercised this authority by the end of the report period.

At the end of the report period, the Board of Directors had no valid authority
to issue options or other special rights providing entitlement to shares.


Energy and the environment

The environmental reviews 2009 for the Raahe and Hämeenlinna works were
published in Finnish and summaries in English at the start of June. The reviews
describe Ruukki's actions to promote energy and material efficiency and to
reduce environmental impacts. In addition, the reviews include information about
the state of the environment in the works' surroundings. The reviews and English
summaries together with more information about other environmental matters can
be found on the company's website.


Litigation and other pending legal actions

On 30 June 2010, the European Commission completed its investigations into
dozens of companies manufacturing prestressing steel. In accordance with the
Commission decision, a total of 17 European steel producers received fines for
price collusion between competitors during the years 1984-2002. The Commission
ordered fines totalling EUR 518 million on the companies involved. The
prestressing steel business practised during 1997-2001 by Rautaruukki's former
subsidiary, Fundia, was included in the investigation. Rautaruukki sold its
interest in Fundia to Ovako in 2005-2006. Rautaruukki, Fundia's owner at the
time, has been, jointly and severally with the Ovako companies concerned,
ordered to pay a fine of EUR 4.7 million. Rautaruukki will examine the grounds
for the Commission decision and evaluate any further action warranted.

Judgment was reached on 15 January 2010 in proceedings instigated in Sweden in a
case concerning safety at work as a result of a serious accident in 2008 at the
Kista Galleria construction site. All the prosecutor's claims against the
company's employee and Ruukki Sverige AB were dismissed. During the second
quarter, the insurance company reached a claims settlement decision and
agreement regarding costs was reached by the parties concerned. This had no
significant impact on profit and loss.


BUSINESS AREAS

RUUKKI CONSTRUCTION

  *       Demand for residential roofing products picked up clearly during the
    second quarter
  *       More orders in commercial and industrial construction than earlier in
    Russia and Central Eastern Europe, overall demand still at a low level
  *       Continued strong infrastructure construction



+--------------------------+-----+-----+--------+--------+-----+
|EUR million               |Q2/10|Q2/09|Q1-Q2/10|Q1-Q2/09| 2009|
+--------------------------+-----+-----+--------+--------+-----+
|Net sales                 |  163|  145|     272|     278|  589|
+--------------------------+-----+-----+--------+--------+-----+
|Operating profit          |  -10|   -9|     -31|     -22|  -49|
+--------------------------+-----+-----+--------+--------+-----+
|as % of net sales         | -5.9| -6.3|   -11.2|    -8.0| -8.3|
+--------------------------+-----+-----+--------+--------+-----+
|Personnel at end of period|     |     |   4 009|   4 512|4 235|
+--------------------------+-----+-----+--------+--------+-----+



Order intake and backlog

Ruukki Construction's order intake during the second quarter of the year was up
by over 20 per cent year on year and by over 70 per cent quarter on quarter.
Especially in residential roofing products, order flow picked up in all market
areas during April-June. Overall order intake in commercial and industrial
construction remained low. However, the severe winter in the early part of the
year pushed back commercial and industrial construction projects in Central
Eastern Europe from the first to the second quarter. Consequently the order flow
in this market area grew. In Russia, the order flow in commercial and industrial
construction began to show slight improvement also in the retail, logistics and
light industry sectors. As in previous quarters, order intake in infrastructure
construction was good.

The order backlog in the construction business at the end of June was over 20
per cent higher year on year and quarter on quarter.


Net sales

Ruukki Construction's net sales for the second quarter were up 12 per cent year
on year at EUR 163 million (145).

During April-June, sales of residential roofing products picked up clearly
quarter on quarter and delivery volumes were also slightly higher year on year.
Demand for roofing products picked up especially in Central Eastern Europe,
where a severe winter kept deliveries at an exceptionally low level during the
first quarter. Sales were also up in other market areas.

Delivery volumes in commercial and industrial construction remained
comparatively low during April-June. Growth in demand was slower especially in
Finland and the Baltics than in other countries. In Russia, deliveries
especially for the construction of agricultural buildings grew during the course
of the second quarter.

In infrastructure construction, net sales for the second quarter were up 55 per
cent year on year. Net sales grew on the back of continued brisk deliveries of
pile structures for Nordic road and railway projects and building construction.

Selling prices in April-June were slightly higher than during the first quarter,
but still at a lower level year on year.

Ruukki Construction's net sales for January-June were slightly down year on year
at EUR 272 million (278). The construction business accounted for 24 per cent
(30) of consolidated comparable net sales. Net sales decreased year on year
particularly due to low demand in commercial and industrial construction in the
first quarter of the year. Because of a weak first quarter, net sales in
residential roofing products were also slightly down. In contrast, there was a
clear rise in net sales in infrastructure construction.

Residential roofing products accounted for 16 per cent (17) of net sales in the
construction business for January-June and infrastructure construction products
accounted for 23 per cent (15).

Operating profit

Ruukki Construction posted a negative operating profit of -EUR 10 million (-9)
for April-June. Although still negative because of a low capacity utilisation
rate, operating profit improved significantly quarter on quarter mainly because
of increased delivery volumes. Higher prices of steel and partly also of other
raw materials impacted on profitability, since it was still not possible during
the second quarter to fully compensate for higher costs by increasing selling
prices.

Operating profit for January-June was -EUR 31 million (-22). Operating profit
was down year on year because of exceptionally low delivery volumes and a low
capacity utilisation rate during the first quarter, higher raw material costs
during the second quarter and lower selling prices.


Operational development

During April-June, Ruukki continued improving the efficiency of its operations
by reorganising production at Anderslöv in Sweden. There are plans to transfer
the production of profiled construction components from Anderslöv to Vimpeli in
Finland and Zyrardov in Poland. As a result of these planned efficiency
measures, employer-employee negotiations regarding possible workforce reductions
were initiated at the Anderslöv plant. A total of around 120 persons are
affected by the negotiations and it is estimated a workforce reduction of
approximately of 60 persons is required.


Major orders

In April, Ruukki agreed a steel structure contract and delivery of the
foundation piles for the new Pekkala bridge to be built in Joensuu, Finland. In
addition, Ruukki will supply the pipe piles for a total of ten bridges and
underpasses. Deliveries of the foundation piles began in April. Fabrication of
the load-bearing structures will begin in summer 2010 and installation will
start in autumn 2010. The deliveries are worth about EUR 2.5 million.

In May, Ruukki was chosen as the steel structure contractor for an extensive
production facility in Sweden. Ruukki is to deliver the frame and envelope
structures, including on-site installation, for the 12,000 square metre,
300-metre long production facility. The contract also includes the design,
including fabrication drawings, of the roof trusses and envelope structures. The
work is scheduled for May-October 2010.

In June, Ruukki agreed a number of steel pipe pile deliveries for harbour
projects in the Netherlands, France and the UK. One of the largest projects is
an enlargement of the Port of Rotterdam, for which Ruukki will deliver the
primary piles as ready-to-install components. Deliveries for all these harbour
projects will take place mainly during the summer and autumn this year. The
contracts are worth a total of almost EUR 8 million.




RUUKKI ENGINEERING

  *       Order flow from cabin customers improved in all customer segments
    during second quarter
  *       Capacity utilisation rate still low
  *       Business acquisition strengthened capability to deliver parts and
    components to equipment manufacturers for the wind power industry



+------------------------------------------+-----+-----+--------+--------+-----+
|EUR million                               |Q2/10|Q2/09|Q1-Q2/10|Q1-Q2/09| 2009|
+------------------------------------------+-----+-----+--------+--------+-----+
|Comparable net sales                      |   50|   67|      92|     167|  263|
+------------------------------------------+-----+-----+--------+--------+-----+
|Net sales of Mo i Rana unit               |    7|    8|      13|      33|   49|
+------------------------------------------+-----+-----+--------+--------+-----+
|Reported net sales                        |   57|   75|     105|     200|  312|
+------------------------------------------+-----+-----+--------+--------+-----+
|Comparable operating profit               |   -9|    4|     -14|      12|    2|
+------------------------------------------+-----+-----+--------+--------+-----+
|Operating profit of Mo i Rana unit        |   -2|   -6|      -4|      -9|  -30|
+------------------------------------------+-----+-----+--------+--------+-----+
|Expenses related to closure of Hässleholm,|   -1|   -5|      -1|      -5|   -5|
|Oskarström and Dortmund units             |     |     |        |        |     |
+------------------------------------------+-----+-----+--------+--------+-----+
|Reported operating profit                 |  -12|   -7|     -20|      -2|  -33|
+------------------------------------------+-----+-----+--------+--------+-----+
|Comparable operating profit as % of net   |-17.7|  5.7|   -15.3|     7.4|  0.7|
|sales                                     |     |     |        |        |     |
+------------------------------------------+-----+-----+--------+--------+-----+
|Personnel at end of period                |     |     |   1 858|   2 020|1 770|
+------------------------------------------+-----+-----+--------+--------+-----+



Order intake and backlog

Order flow in the engineering business during the second quarter of the year was
up almost 15 per cent year on year and almost 20 per cent quarter on quarter.
New orders were secured from cabin customers mostly in equipment manufacture for
the mining and forest machine industries, but also from manufacturers of
materials handling equipment. Because of a few larger single orders from
customers in the shipbuilding industry, order intake was clearly higher quarter
on quarter.

The order backlog in the engineering industry was somewhat smaller year on year
and also slightly smaller quarter on quarter.


Net sales

Ruukki Engineering's comparable net sales for the second quarter of the year
were up 17 per cent quarter on quarter, but down year on year at EUR 50 million
(67). Reported net sales were EUR 57 million (75). Operations at the Mo i Rana
unit in Norway were discontinued in mid-May until further notice. However,
during the second quarter, the unit still had deliveries worth EUR 7 million
(8).

During April-June, cabin deliveries, especially to equipment manufacturers for
the mining and forest machine industries, were up both year on year and quarter
on quarter. Likewise, deliveries to manufacturers of materials handling
equipment increased. The year-on-year decrease in second quarter net sales was
mostly attributable to lower delivery volumes to equipment manufacturers for the
wind power industry. Likewise, deliveries decreased to manufacturers of other
equipment for the energy industry. Nevertheless, deliveries to these customer
sectors were higher quarter on quarter. Deliveries of plates for shipbuilding
were higher quarter on quarter, but decreased clearly year on year.

Ruukki Engineering's comparable net sales for the first half of 2010 were EUR
92 million (167) and accounted for 8 per cent (18) of consolidated comparable
net sales. Reported net sales were EUR 105 million (200). Net sales were down
year on year mainly as a result of a decrease in delivery volumes to equipment
manufacturers for the wind power and other energy industry, shipbuilding and the
manufacture of materials handling equipment.

Selling prices during the first half of the year were noticeably lower year on
year, but rose to some extent towards the end of the second quarter on the back
of higher steel prices.

Manufacturers of lifting, handling and transportation equipment accounted for
61 per cent (43) of comparable net sales of the engineering business during
January-June and equipment manufacturers for the energy industry accounted for
17 per cent (34).


Operating profit

Ruukki Engineering posted a comparable negative operating profit of -EUR 9
million (4) for the second quarter of the year. Operating profit for the second
quarter was burdened by low capacity utilisation rates at a number of units and
by the start-up of cabin production at Holic, Slovakia. Also a few long-term
contracts in shipbuilding were loss-making during the second quarter because of
higher raw material costs. However most of these contracts expired at the end of
June. Reported negative operating profit was -EUR 12 million (-7), which
includes a -EUR 2 million negative operating profit made by the Mo i Rana unit,
which has been discontinued until further notice, and a provision of EUR 1
million made for costs related to closure of the Dortmund unit in Germany.

Comparable negative operating profit for January-June was -EUR 14 million (12)
and reported negative operating profit was -EUR 20 million (-2). The comparable
operating loss was mainly due to low capacity utilisation rate and small
delivery volumes. Lower selling prices year on year also weakened operating
profit. Reported operating profit was weakened also by the poor performance of
the Mo i Rana unit.


Operational development

In April, Ruukki strengthened its position in the wind power industry through
acquisition of the lattice wind turbine tower design, erection and maintenance
operations of the German company SeeBA Technik GmbH. The transaction will
strengthen Ruukki's position as a supplier of high wind turbine towers.

In April, Ruukki announced it is to strengthen its global cabin manufacturing
network in Central Eastern Europe and China. During the second quarter, cabin
production started up at Holic in Slovakia. Cabins manufactured in Holic are
mainly destined for the Central and Eastern European markets. Cabin deliveries
from Holic will begin during the third quarter of 2010. Cabin product
development is focused on the R&D centre of excellence in Kurikka, Finland.

At the end of June, Ruukki announced it is to improve the efficiency of its
manufacturing network by further concentrating boom manufacturing. This will
mean switching boom manufacturing at the Dortmund unit in Germany to other
Ruukki units which already make booms for mobile machines. This move will result
in closure of the Dortmund unit at the end of October 2010. The unit currently
has 26 employees.


Major orders

In May, Ruukki and Cargotec strengthened cabin cooperation and signed a contract
to start manufacturing and supplying cabins from Ruukki's units in Central
Eastern Europe and China.

In May, Ruukki signed an agreement with Aker Solutions of Norway to supply 24
suction anchors and offshore steel plates. Deliveries will start in September
2010.

In June, Ruukki signed a letter of intent with the Norwegian company Aker Verdal
AS to deliver steel structures for the Nordsee Ost wind farm project to be built
offshore from Germany in the North Sea. Offshore wind turbine towers are
anchored to the sea bed by huge piles and massive welded structures are used to
fasten the wind turbine towers to their jacket foundations. Ruukki's delivery
includes a total of 240 of these individual structures to anchor the towers and
join the structures together. Manufacture of the steel structures will begin in
the fourth quarter of this year and deliveries will last for about a year. The
letter of intent has not been booked in order intake or the order backlog.




RUUKKI METALS

  *       Order intake in second quarter clearly up year on year
  *       Higher delivery volumes and selling prices during second quarter
  *       Sales of special steel products developed better than other product
    groups - good demand in new markets
  *       Modernisation of blast furnace 1 completed to schedule and blast
    furnace reached its target capacity utilisation rate in June




+------------------------------------------+-----+-----+--------+--------+-----+
|EUR million                               |Q2/10|Q2/09|Q1-Q2/10|Q1-Q2/09| 2009|
+------------------------------------------+-----+-----+--------+--------+-----+
|Net sales                                 |  434|  218|     782|     467|1 050|
+------------------------------------------+-----+-----+--------+--------+-----+
|Comparable operating profit               |   81|  -97|      77|    -199| -228|
+------------------------------------------+-----+-----+--------+--------+-----+
|Expense caused by low utilisation rate    |  -18|     |     -18|        |     |
|related to blast furnace modernisation    |     |     |        |        |     |
+------------------------------------------+-----+-----+--------+--------+-----+
|Reported operating profit                 |   64|  -97|      60|    -199| -228|
+------------------------------------------+-----+-----+--------+--------+-----+
|Comparable operating profit as % of net   | 18.7|-44.4|     9.9|   -42.6|-21.7|
|sales                                     |     |     |        |        |     |
+------------------------------------------+-----+-----+--------+--------+-----+
|Personnel at end of period                |     |     |   5 901|   5 902|5 226|
+------------------------------------------+-----+-----+--------+--------+-----+



Order intake and backlog

Order intake during the second quarter of the year was up more than 40 per cent
year on year and slightly higher quarter on quarter. Order flow of special steel
products from new markets - China, Turkey and Brazil - showed good development.
Order volumes of special steel products also from other market areas grew.

Order flows grew also in all other product groups year on year. Orders secured
from Sweden and Russia showed highest relative growth. Compared to the first
quarter of the year, orders for colour-coated and galvanised products from the
construction industry developed especially well.

The order backlog in the steel business at the end of the report period was at
the same level year on year, but slightly lower than at the end of March this
year.


Net sales

Ruukki Metals' net sales for April-June were EUR 434 million (218) or about
double the figure year on year and 25 per cent higher quarter on quarter.

Demand improved during the second quarter and delivery volumes of steel products
rose also compared to the early part of the year. Deliveries to the heavy
engineering industry grew and deliveries to subcontractors in the automotive
industry remained at a good level. Seasonal growth in demand in residential
construction increased deliveries to the construction industry. Demand for steel
products in Sweden has recovered much faster than in the other Nordic countries,
whereas demand in Finland has been slower.

During April-June, sales of special steel products developed better than other
product groups. Growth in demand continued in a number of sectors - such as the
manufacture of equipment for the mining industry and in the heavy vehicle
industry - that use special steel products. The first quarter of this year saw
an expansion and strengthening of the distribution network in new market areas
such as Brazil and China. This has resulted in clear sales growth in these
market areas. Sales of special steel products have also begun to pick up in
Western Europe.

Selling prices for steel products were clearly much higher during the second
quarter than during the first, but were still slightly lower year on year.
Selling prices rose steadily throughout the second quarter.

Ruukki Metals' net sales for January-June were EUR 782 million (467) and
accounted for 68 per cent (51) of consolidated comparable net sales. Higher
delivery volumes, particularly in Sweden and Western Europe, and an increased
share of special steel products of deliveries improved net sales year on year.
Special steel products accounted for 23 per cent (19) of Ruukki Metals' net
sales for the first half of the year. Net sales of stainless steel and
aluminium, which are sold as trading products, were up 19 per cent year on year
at EUR 64 million (54) for January-June.


Operating profit

Ruukki Metals' comparable operating profit for the second quarter was EUR 81
million (-97), which shows a significant improvement both year on year and
quarter on quarter. Compared to the first quarter, higher average selling prices
and a growth in the share of special steel products of delivery volumes improved
operating profit. Steel product costs were still at a relatively low level
during the second quarter.

The main raw materials used in steel production are priced in US dollars (USD).
Derivatives hedging is employed to protect against the ensuing currency risk. A
positive impact on profit and loss of EUR 25 million arising from USD hedging
was booked for the second quarter.

Reported operating profit for April-June was EUR 64 million (-97). The low steel
production capacity utilisation rate due to modernisation of blast furnace 1 had
a cost impact of -EUR 18 million. This item has been eliminated from the
comparable operating profit.

Comparable operating profit for January-June was EUR 77 million (-199) and the
reported operating profit was EUR 60 million (-199). Good development of
operating profit was mainly attributable to increased delivery volumes of steel
products, improved utilisation rates in production and cost savings carried out.
Operating profit for the first half of the year from stainless steel and
aluminium sold as trading products was up year on year at EUR 5 million (-5).


Steel production

+----------------+-----+-----+--------+--------+-----+
|1 000 tonnes    |Q2/10|Q2/09|Q1-Q2/10|Q1-Q2/09| 2009|
+----------------+-----+-----+--------+--------+-----+
|Steel production|  418|  392|   1 029|     661|1 892|
+----------------+-----+-----+--------+--------+-----+



The company's steel production was 418 thousand tonnes (392) during the second
quarter and 1,029 thousand tonnes (661) during the first half of 2010.

Modernisation of blast furnace 1 at the Raahe Steel Works in Finland was
completed to schedule during the course of the second quarter. Because the blast
furnace was shut down for modernisation, the capacity utilisation rate in steel
slab production during April-June was around 60 per cent. Modernisation was
completed to schedule during the second quarter and the blast furnace was
re-started towards the end of May. The target utilisation rate was reached in
June. The utilisation rate in the manufacture of steel products was at a good
level during the second quarter by using the slab stockpile built up during the
first part of the year.

It is planned to likewise shut down blast furnace 2 in June 2011 for
modernisation, which will take about two months. Before the blast furnace is
shut down, slab stockpiles will be increased to safeguard customer deliveries
during the modernisation shut-down.


Contracts for raw materials in steel production

A new price contract for iron ores was reached during the second quarter of the
year. Prices for iron ore concentrate and pellets were agreed with the Swedish
company LKAB by an annual contract.

Ruukki sources coking coal from a number of suppliers. During the second
quarter, price contracts were agreed with some suppliers and some negotiations
are still ongoing. Some of the contracts already agreed are annual and others
are quarterly.

During the second half of the year, the cost of the raw materials used in steel
production will rise both because of the rise in dollar-denominated purchase
prices and a strengthened dollar.


Operational development

Expansion of the distribution network for special steel products is one of the
main focus areas in the steel business during the current year. During the first
part of the year, the company strengthened its distribution network by signing
agreements on distribution cooperation in Brazil. Likewise, the sales network in
China and Turkey was further expanded in the early part of the year through new
agreements on distribution cooperation. Work continued on strengthening the
distribution network in all these countries during the second quarter.

In April, Ruukki launched Optim 700 MC Plus, a new high-strength structural with
very good cold-forming properties. These properties can be utilised in, for
example, the manufacture of cranes, bodies for trucks and other mobile machines,
goods handling equipment, earthmoving, mining and waste handling equipment.





Near-term business risks

The company has detailed business risks and risk management in the Annual Report
2009. The company does not consider any material changes to have taken place
during the report period in the risks and factors of uncertainty presented in
the Annual Report 2009.


Near-term outlook

A number of indicators suggest a continuation of economic recovery in Ruukki's
main market areas. Growing uncertainty in the financial markets and the impact
on economic activity of austerity programmes in a number of European countries
might, however, slow economic growth and the start-up of investments during the
second half of the year.

Residential construction is expected to grow in the Nordic countries and Russia.
Likewise, infrastructure construction activity is expected to continue good in
the Nordic countries. Difficult market conditions persist in commercial and
industrial construction, especially in Finland and the Baltics. In Russia and
Central Eastern Europe, especially in Poland, private investments in commercial
and industrial construction are picking up.

In the engineering business, market conditions are improving. Order intake
volumes especially for cabins for mining and forest machines have begun to grow.
Also demand for heavy cargo handling equipment is improving. Demand in equipment
for the energy industry especially in wind power is expected to recover from its
present level towards the end of the year. Shipbuilding activity in Europe is at
a low level.

In the steel business, demand is expected to further improve in the heavy
engineering industry and heavy vehicle industry and to remain stable in the car
industry. Supported by good demand in these industries, delivery volumes of
special steel products are expected to show further growth. An expansion of the
company's distribution network in China and Turkey and into Brazil, for example,
also supports sales of special steel products. Eurofer forecasts growth of
around 17 per cent in apparent steel use in the EU-27 region in 2010 compared to
2009.

As a result of higher delivery volumes and higher average selling prices, net
sales are expected to grow more this year than the company previously estimated.
It is also estimated that product costs will rise higher than previously
forecast due to a rise in US dollar-denominated purchase prices of raw
materials, as well as to a strengthened dollar.

Net sales in 2010 are estimated to grow 25-30 per cent year on year (previous
estimate 15-20 per cent). Profitability is expected to improve significantly
compared to the previous year and the full-year result before income tax is
estimated to be positive.




This interim report is unaudited.

Helsinki, 16 July 2010

Rautaruukki Corporation

Board of Directors




SUMMARY FINANCIAL STATEMENT AND NOTES

This interim report has been prepared in accordance with IAS 34 Interim
Financial Reporting and is in conformity with the accounting policies published
in the 2009 financial statements.

The consolidated financial statements are affected by the following IFRS
standards and interpretations thereof entering into force on 1 January 2010:

      - Revised IFRS 3 Business Combinations
      - Amended IAS 27 Consolidated and Separate Financial Statements

The revised and amended standards referred to above had no impact on this
interim report.

Use of estimates
The preparation of interim reports in conformity with IFRS requires management
to make estimates and assumptions that affect the reported amounts of assets and
liabilities, the reporting of contingent assets and liabilities and the reported
amounts of income and expense. Even though these estimates are based on
management's best judgment at the time, actual results may ultimately differ
from these estimates.

Operative capital employed of business segments
This interim report has switched over from reporting segment assets to reporting
segment operative capital employed because this is the indicator that is
reported to management and which management monitors. Operative capital employed
is defined as follows:

+ Tangible and intangible assets
+ Available for sale financial assets
+ Inventories
+ Trade receivables
- Trade payables
- Advances received

Figures for the reference periods are similarly stated.

Individual figures and totals appearing in the tables have been rounded to the
nearest full million
of euros.

The figures are unaudited.





+------------------------------------------------------+--------+--------+-----+
|CONSOLIDATED INCOME STATEMENT (IFRS)                  |        |        |     |
+------------------------------------------+-----+-----+--------+--------+-----+
|EUR million                               |Q2/10|Q2/09|Q1-Q2/10|Q1-Q2/09| 2009|
+------------------------------------------+-----+-----+--------+--------+-----+
|Net sales                                 |  655|  438|   1 160|     944|1 950|
+------------------------------------------+-----+-----+--------+--------+-----+
|Cost of sales                             |  555|  492|   1 039|   1 046|2 027|
+------------------------------------------+-----+-----+--------+--------+-----+
|Gross profit                              |  100|  -54|     121|    -101|  -77|
+------------------------------------------+-----+-----+--------+--------+-----+
+------------------------------------------+-----+-----+--------+--------+-----+
|Other operating income                    |    4|    3|       8|      10|   20|
+------------------------------------------+-----+-----+--------+--------+-----+
|Selling and marketing expenses            |   28|   29|      53|      58|  113|
+------------------------------------------+-----+-----+--------+--------+-----+
|Administrative expenses                   |   41|   38|      78|      79|  151|
+------------------------------------------+-----+-----+--------+--------+-----+
|Other operating expenses                  |    1|   -1|       1|       1|    2|
+------------------------------------------+-----+-----+--------+--------+-----+
|Operating profit                          |   34| -117|      -2|    -230| -323|
+------------------------------------------+-----+-----+--------+--------+-----+
+------------------------------------------+-----+-----+--------+--------+-----+
|Finance income                            |   18|   10|      40|      55|   81|
+------------------------------------------+-----+-----+--------+--------+-----+
|Finance costs                             |   25|   20|      54|      74|  117|
+------------------------------------------+-----+-----+--------+--------+-----+
|Net finance costs                         |   -6|  -10|     -14|     -19|  -36|
+------------------------------------------+-----+-----+--------+--------+-----+
+------------------------------------------+-----+-----+--------+--------+-----+
|Share of profit of equity-accounted       |    1|    0|       1|       0|    0|
|investees                                 |     |     |        |        |     |
+------------------------------------------+-----+-----+--------+--------+-----+
|Result before income tax                  |   28| -127|     -16|    -249| -359|
+------------------------------------------+-----+-----+--------+--------+-----+
|Income tax expense                        |   -9|   33|       3|      65|   84|
+------------------------------------------+-----+-----+--------+--------+-----+
|Result for the period                     |   20|  -94|     -13|    -184| -275|
+------------------------------------------+-----+-----+--------+--------+-----+
+------------------------------------------+-----+-----+--------+--------+-----+
|Attributable to:                          |     |     |        |        |     |
+------------------------------------------+-----+-----+--------+--------+-----+
|Owners of the company                     |   20|  -94|     -13|    -184| -275|
+------------------------------------------+-----+-----+--------+--------+-----+
|Non-controlling interest                  |    0|    0|       0|       0|    0|
+------------------------------------------+-----+-----+--------+--------+-----+
+------------------------------------------+-----+-----+--------+--------+-----+
|Earnings per share, diluted, EUR          | 0.14|-0.68|   -0.09|   -1.33|-1.98|
+------------------------------------------+-----+-----+--------+--------+-----+
|Earnings per share, basic, EUR            | 0.14|-0.68|   -0.09|   -1.33|-1.98|
+------------------------------------------+-----+-----+--------+--------+-----+
|Operating profit as % of net sales        |  5.2|-26.7|    -0.2|   -24.3|-16.6|
+------------------------------------------+-----+-----+--------+--------+-----+



+----------------------------------------------------------------+--------+----+
|CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (IFRS)           |        |    |
+-------------------------------------------+-----+-----+--------+--------+----+
|EUR million                                |Q2/10|Q2/09|Q1-Q2/10|Q1-Q2/09|2009|
+-------------------------------------------+-----+-----+--------+--------+----+
|Result for the period                      |   20|  -94|     -13|    -184|-275|
+-------------------------------------------+-----+-----+--------+--------+----+
|Other comprehensive income:                |     |     |        |        |    |
+-------------------------------------------+-----+-----+--------+--------+----+
|Effective portion of changes in fair value |   -4|   20|     -11|      21|  51|
|of cash flow hedges                        |     |     |        |        |    |
+-------------------------------------------+-----+-----+--------+--------+----+
|Translation differences                    |    8|   17|      24|      -4|  -5|
+-------------------------------------------+-----+-----+--------+--------+----+
|Defined benefit plan actuarial gains and   |    0|    0|      -2|       0| -15|
|losses                                     |     |     |        |        |    |
+-------------------------------------------+-----+-----+--------+--------+----+
|Tax on other comprehensive income          |    1|   -6|       3|      -5|  -9|
+-------------------------------------------+-----+-----+--------+--------+----+
|Other comprehensive income for the period, |    5|   32|      15|      11|  22|
|net of tax                                 |     |     |        |        |    |
+-------------------------------------------+-----+-----+--------+--------+----+
|Total comprehensive income for the period  |   24|  -62|       2|    -174|-253|
+-------------------------------------------+-----+-----+--------+--------+----+
+-------------------------------------------+-----+-----+--------+--------+----+
|Attributable to:                           |     |     |        |        |    |
+-------------------------------------------+-----+-----+--------+--------+----+
|Owners of the company                      |   24|  -62|       2|    -174|-253|
+-------------------------------------------+-----+-----+--------+--------+----+
|Non-controlling interest                   |    0|    0|       0|       0|   0|
+-------------------------------------------+-----+-----+--------+--------+----+



+------------------------------------------------------+-----------+-----------+
|SUMMARY CONSOLIDATED STATEMENT OF FINANCIAL POSITION  |           |           |
|(IFRS)                                                |           |           |
+------------------------------------------+-----------+-----------+-----------+
|EUR million                               |30 Jun 2010|30 Jun 2009|31 Dec 2009|
+------------------------------------------+-----------+-----------+-----------+
|ASSETS                                    |           |           |           |
+------------------------------------------+-----------+-----------+-----------+
|Non-current assets                        |      1 431|      1 432|      1 404|
+------------------------++----------------+-----------+-----------+-----------+
|Deferred tax assets     ||                |         45|         38|         39|
+------------------------++----------------+-----------+-----------+-----------+
|Current assets                            |           |           |           |
+------------------------------------------+-----------+-----------+-----------+
|Inventories                               |        556|        567|        492|
+------------------------------------------+-----------+-----------+-----------+
|Trade and other receivables               |        481|        349|        335|
+------------------------------------------+-----------+-----------+-----------+
|Cash and cash equivalents                 |        141|        102|        261|
+------------------------------------------+-----------+-----------+-----------+
|Total assets                              |      2 654|      2 488|      2 532|
+------------------------++----------------+-----------+-----------+-----------+
+------------------------++----------------+-----------+-----------+-----------+
|EQUITY AND LIABILITIES                    |           |           |           |
+------------------------------------------+-----------+-----------+-----------+
|Equity                                    |           |           |           |
+------------------------------------------+-----------+-----------+-----------+
|Equity attributable to owners of the      |      1 446|      1 587|      1 507|
|company                                   |           |           |           |
+------------------------------------------+-----------+-----------+-----------+
|Non-controlling interest                  |          2|          2|          2|
+------------------------------------------+-----------+-----------+-----------+
|Non-current liabilities                   |           |           |           |
+------------------------------------------+-----------+-----------+-----------+
|Loans and borrowings                      |        426|        322|        387|
+------------------------------------------+-----------+-----------+-----------+
|Non-interest bearing liabilities          |         55|         50|         61|
+------------------------++----------------+-----------+-----------+-----------+
|Deferred tax liabilities||                |         34|         52|         37|
+------------------------++----------------+-----------+-----------+-----------+
|Current liabilities                       |           |           |           |
+------------------------------------------+-----------+-----------+-----------+
|Loans and borrowings                      |        234|        144|        209|
+------------------------------------------+-----------+-----------+-----------+
|Trade payables and other non-interest     |        458|        332|        328|
|bearing liabilities                       |           |           |           |
+------------------------------------------+-----------+-----------+-----------+
|Total equity and liabilities              |      2 654|      2 488|      2 532|
+------------------------------------------+-----------+-----------+-----------+



+------------------------------------------------------+--------+----+
|SUMMARY CONSOLIDATED STATEMENT OF CASH FLOWS (IFRS)   |        |    |
+---------------------------------------------+--------+--------+----+
|EUR million                                  |Q1-Q2/10|Q1-Q2/09|2009|
+---------------------------------------------+--------+--------+----+
|Result for the period                        |     -13|    -184|-275|
+---------------------------------------------+--------+--------+----+
|Adjustments                                  |      37|      70| 178|
+---------------------------------------------+--------+--------+----+
|Cash flow before change in working capital   |      24|    -114| -97|
+---------------------------------------------+--------+--------+----+
|Change in working capital                    |     -47|     215| 317|
+---------------------------------------------+--------+--------+----+
|Financing items and taxes                    |     -18|     -18| -38|
+---------------------------------------------+--------+--------+----+
|Net cash flow from operating activities      |     -41|      82| 182|
+---------------------------------------------+--------+--------+----+
|Cash inflow from investing activities        |       8|       9|  17|
+---------------------------------------------+--------+--------+----+
|Cash outflow from investing activities       |     -92|     -97|-170|
+---------------------------------------------+--------+--------+----+
|Net cash used in investing activities        |     -84|     -89|-153|
+---------------------------------------------+--------+--------+----+
|Net cash flow before financing activities    |    -125|      -6|  30|
+---------------------------------------------+--------+--------+----+
|Dividends paid                               |     -62|    -188|-188|
+---------------------------------------------+--------+--------+----+
|Proceeds from loans and borrowings           |      54|     283| 434|
+---------------------------------------------+--------+--------+----+
|Repayments of loans and borrowings           |     -12|    -239|-330|
+---------------------------------------------+--------+--------+----+
|Change in current liabilities                |      26|      10|  76|
+---------------------------------------------+--------+--------+----+
|Other net cash flow from financing activities|      -5|     -11| -18|
+---------------------------------------------+--------+--------+----+
|Translation differences                      |       3|      -2|   1|
+---------------------------------------------+--------+--------+----+
|Change in cash and cash equivalents          |    -120|    -153|   7|
+---------------------------------------------+--------+--------+----+



+------------------+-----------------------+-----------+-----------+-----------+
|KEY FIGURES (IFRS)|                       |           |           |           |
+------------------+-----------------------+-----------+-----------+-----------+
|                                          |   Q1-Q2/10|   Q1-Q2/09|       2009|
+------------------------------------------+-----------+-----------+-----------+
|Net sales, EUR m                          |      1 160|        944|      1 950|
+------------------------------------------+-----------+-----------+-----------+
|Operating profit, EUR m                   |         -2|       -230|       -323|
+------------------------------------------+-----------+-----------+-----------+
|as % of net sales                         |       -0.2|      -24.3|      -16.6|
+------------------------------------------+-----------+-----------+-----------+
|Result before income tax, EUR m           |        -16|       -249|       -359|
+------------------------------------------+-----------+-----------+-----------+
|as % of net sales                         |       -1.3|      -26.4|      -18.4|
+------------------------------------------+-----------+-----------+-----------+
|Result for the period, EUR m              |        -13|       -184|       -275|
+------------------------------------------+-----------+-----------+-----------+
|as % of net sales                         |       -1.1|      -19.5|      -14.1|
+------------------------------------------+-----------+-----------+-----------+
|Net cash flow from operating activities,  |        -41|         82|        182|
|EUR m                                     |           |           |           |
+------------------------------------------+-----------+-----------+-----------+
|Net cash flow before financing activities,|       -125|         -6|         30|
|EUR m                                     |           |           |           |
+------------------------------------------+-----------+-----------+-----------+
|Return on capital employed (rolling 12    |       -4.4|        1.9|      -14.2|
|mths), %                                  |           |           |           |
+------------------------------------------+-----------+-----------+-----------+
|Return on equity (rolling 12 mths), %     |       -6.8|       -0.5|      -15.9|
+------------------------------------------+-----------+-----------+-----------+
|Equity ratio, %                           |       55.2|       64.3|       59.9|
+------------------------------------------+-----------+-----------+-----------+
|Gearing ratio, %                          |       35.9|       22.9|       22.3|
+------------------------------------------+-----------+-----------+-----------+
|Net interest-bearing liabilities, EUR m   |        519|        364|        336|
+------------------------------------------+-----------+-----------+-----------+
|Equity per share, EUR                     |      10.41|      11.43|      10.85|
+------------------------------------------+-----------+-----------+-----------+
|Personnel on average                      |     11 733|     13 165|     12 664|
+------------------------------------------+-----------+-----------+-----------+
|Number of shares                          |140 285 425|140 285 425|140 285 425|
+------------------------------------------+-----------+-----------+-----------+
|- excluding treasury shares               |138 863 850|138 864 817|138 863 850|
+------------------------------------------+-----------+-----------+-----------+
|- diluted, average                        |138 863 850|138 826 947|138 846 063|
+------------------------------------------+-----------+-----------+-----------+



+--------------------------------------------------------+------+-------+------+
|CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (IFRS)      |      |       |      |
+----------------+---------------------------------------+------+-------+------+
|                | Equity attributable to owners of the company |              |
+----------------+-------+-------+--------+-------+------+------+-------+------+
|                |       |       |    Fair|       |      |      |   Non-|      |
|                |       |       |   value| Trans-| Trea-|   Re-|  cont-|      |
|EUR million     |  Share|  Share|     and| lation|  sury|tained|rolling| Total|
|                |capital|premium|   other|  diff-|shares| earn-| inter-|equity|
|                |       |       |     re-|erences|      |  ings|    est|      |
|                |       |       |  serves|       |      |      |       |      |
+----------------+-------+-------+--------+-------+------+------+-------+------+
|EQUITY 1 Jan    |    238|    220|     -37|    -36|    -6| 1 568|      2| 1 950|
|2009            |       |       |        |       |      |      |       |      |
+----------------+-------+-------+--------+-------+------+------+-------+------+
|Result for the  |       |       |        |       |      |  -184|      0|  -184|
|period          |       |       |        |       |      |      |       |      |
+----------------+-------+-------+--------+-------+------+------+-------+------+
|Other           |       |       |        |       |      |      |       |      |
|comprehensive   |       |       |      15|     -4|      |      |       |    11|
|income          |       |       |        |       |      |      |       |      |
+----------------+-------+-------+--------+-------+------+------+-------+------+
|Total           |       |       |        |       |      |      |       |      |
|comprehensive   |       |       |      15|     -4|      |  -184|      0|  -174|
|income for the  |       |       |        |       |      |      |       |      |
|period          |       |       |        |       |      |      |       |      |
+----------------+-------+-------+--------+-------+------+------+-------+------+
|Share issue     |      0|       |        |       |      |      |       |     0|
+----------------+-------+-------+--------+-------+------+------+-------+------+
|Dividend        |       |       |        |       |      |  -188|       |  -188|
|distribution    |       |       |        |       |      |      |       |      |
+----------------+-------+-------+--------+-------+------+------+-------+------+
|Share-based     |       |       |       0|       |     0|      |       |     0|
|payments        |       |       |        |       |      |      |       |      |
+----------------+-------+-------+--------+-------+------+------+-------+------+
|EQUITY 30 Jun   |    238|    220|     -21|    -40|    -6| 1 197|      2| 1 589|
|2009            |       |       |        |       |      |      |       |      |
+----------------+-------+-------+--------+-------+------+------+-------+------+
+----------------+-------+-------+--------+-------+------+------+-------+------+
|EQUITY 1 Jan    |    238|    220|       2|    -41|    -6| 1 095|      2| 1 509|
|2010            |       |       |        |       |      |      |       |      |
+----------------+-------+-------+--------+-------+------+------+-------+------+
|Result for the  |       |       |        |       |      |   -13|      0|   -13|
|period          |       |       |        |       |      |      |       |      |
+----------------+-------+-------+--------+-------+------+------+-------+------+
|Other           |       |       |        |       |      |      |       |      |
|comprehensive   |       |       |      -8|     24|      |    -1|       |    15|
|income          |       |       |        |       |      |      |       |      |
+----------------+-------+-------+--------+-------+------+------+-------+------+
|Total           |       |       |        |       |      |      |       |      |
|comprehensive   |       |       |      -8|     24|      |   -14|      0|     2|
|income for the  |       |       |        |       |      |      |       |      |
|period          |       |       |        |       |      |      |       |      |
+----------------+-------+-------+--------+-------+------+------+-------+------+
|Dividend        |       |       |        |       |      |   -62|       |   -62|
|distribution    |       |       |        |       |      |      |       |      |
+----------------+-------+-------+--------+-------+------+------+-------+------+
|Share-based     |       |       |       0|       |     0|      |       |     0|
|payments        |       |       |        |       |      |      |       |      |
+----------------+-------+-------+--------+-------+------+------+-------+------+
|EQUITY 30 Jun   |    238|    220|      -6|    -17|    -6| 1 018|      2| 1 447|
|2010            |       |       |        |       |      |      |       |      |
+----------------+-------+-------+--------+-------+------+------+-------+------+



+--------------------------+-+-+--------+--------+----+
|NET SALES BY REGION (IFRS)| | |        |        |    |
+--------------------------+-+-+--------+--------+----+
|As % of net sales             |Q1-Q2/10|Q1-Q2/09|2009|
+------------------------------+--------+--------+----+
|Finland                       |      26|      32|  30|
+------------------------------+--------+--------+----+
|Other Nordic countries        |      32|      33|  31|
+------------------------------+--------+--------+----+
|Central Eastern Europe        |      10|      11|  12|
+------------------------------+--------+--------+----+
|Russia and Ukraine            |       7|       6|   7|
+------------------------------+--------+--------+----+
|Rest of Europe                |      18|      14|  14|
+------------------------------+--------+--------+----+
|Other countries               |       8|       4|   6|
+------------------------------+--------+--------+----+



+-----------------------------+-+----+-----------+-----------+-----------+
|CONTINGENT LIABILITIES (IFRS)| |    |           |           |           |
+-----------------------------+-+----+-----------+-----------+-----------+
|EUR million                         |30 Jun 2010|30 Jun 2009|31 Dec 2009|
+------------------------------------+-----------+-----------+-----------+
|Mortgaged real estate               |         64|         73|         64|
+------------------------------------+-----------+-----------+-----------+
|Pledged assets                      |           |          0|           |
+------------------------------------+-----------+-----------+-----------+
|Other guarantees given              |         39|         37|         43|
+------------------------------------+-----------+-----------+-----------+
|Collateral given on behalf of others|          2|          3|           |
+------------------------------------+-----------+-----------+-----------+
|Rental liabilities                  |         93|        116|        114|
+------------------------------------+-----------+-----------+-----------+



+------------------------+-----------+-----------+-----------+-----------------+
|DERIVATIVE CONTRACTS    |           |           |           |                 |
|(IFRS)                  |           |           |           |                 |
+------------------------+-----------+-----------+-----------+-----------------+
|                        |30 Jun 2010|30 Jun 2010|30 Jun 2009|      30 Jun 2009|
|EUR million             |    Nominal| Fair value|    Nominal|       Fair value|
|                        |     amount|           |     amount|                 |
+------------------------+-----------+-----------+-----------+-----------------+
|CASH FLOW HEDGES QUALIFYING FOR HEDGE ACCOUNTING                              |
+------------------------+-----------------------------------------------------+
|Zinc derivatives        |                                                     |
+------------------------+-----------+-----------+-----------+-----------------+
|Forward contracts,      |     27 000|         -3|     32 500|              -14|
|tonnes                  |           |           |           |                 |
+------------------------+-----------+-----------+-----------+-----------------+
|Electricity derivatives |                                                     |
+------------------------+-----------+-----------+-----------+-----------------+
|Forward contracts, GWh  |      1 698|         -6|      1 844|              -15|
+------------------------+-----------+-----------+-----------+-----------------+
+------------------------------------------------------------------------------+
|FAIR VALUE HEDGES QUALIFYING FOR HEDGE ACCOUNTING                             |
+------------------------+-----------+-----------+-----------+-----------------+
|Interest rate           |         75|          1|           |                 |
|derivatives             |           |           |           |                 |
+------------------------+-----------+-----------+-----------+-----------------+
+------------------------------------------------------------------------------+
|DERIVATIVES NOT QUALIFYING FOR HEDGE ACCOUNTING                               |
+------------------------+-----------+-----------+-----------+-----------------+
|Zinc derivatives        |           |           |           |                 |
+------------------------+-----------+-----------+-----------+-----------------+
|  Forward contracts,    |           |           |        500|                0|
|tonnes                  |           |           |           |                 |
+------------------------+-----------+-----------+-----------+-----------------+
|Foreign currency        |           |           |           |                 |
|derivatives             |           |           |           |                 |
+------------------------+-----------+-----------+-----------+-----------------+
|Forward contracts       |        532|         20|        487|              -10|
+------------------------+-----------+-----------+-----------+-----------------+
|Options                 |           |           |           |                 |
+------------------------+-----------+-----------+-----------+-----------------+
|Bought                  |        163|          6|         90|               -1|
+------------------------+-----------+-----------+-----------+-----------------+
|Sold                    |        166|          1|         90|                0|
++-----------------------+-----------+-----------+-----------+-----------------+
++-----------------------+-----------+-----------+-----------+-----------------+
|The unrealised movements in the fair value of cash flow hedges are recognised |
|in other comprehensive income items to the extent the hedge is effective.     |
|Other movements in fair value are recorded through profit and loss.           |
+------------------------------------------------------------------------------+



+-----------------------------------------------+--------+--------+-----+
|CHANGES IN PROPERTY, PLANT AND EQUIPMENT (IFRS)|        |        |     |
+-----------------------------------------------+--------+--------+-----+
|EUR million                                    |Q1-Q2/10|Q1-Q2/09| 2009|
+-----------------------------------------------+--------+--------+-----+
|Carrying amount at the beginning of period     |   1 159|   1 124|1 124|
+-----------------------------------------------+--------+--------+-----+
|Additions                                      |      82|      90|  167|
+-----------------------------------------------+--------+--------+-----+
|Additions through acquisitions                 |       0|       4|    5|
+-----------------------------------------------+--------+--------+-----+
|Disposals                                      |      -2|      -6|  -11|
+-----------------------------------------------+--------+--------+-----+
|Disposals through divestments                  |      -3|       0|     |
+-----------------------------------------------+--------+--------+-----+
|Depreciation and impairment                    |     -64|     -61| -125|
+-----------------------------------------------+--------+--------+-----+
|Translation differences                        |      12|      -7|   -1|
+-----------------------------------------------+--------+--------+-----+
|Carrying amount at the end of period           |   1 184|   1 144|1 159|
+-----------------------------------------------+--------+--------+-----+



+----------------------------------+-------+-----------+-----------+-----------+
|TRANSACTIONS WITH RELATED PARTIES |       |           |           |           |
|(IFRS)                            |       |           |           |           |
+----------------------------------+-------+-----------+-----------+-----------+
|EUR million                               |   Q1-Q2/10|   Q1-Q2/09|       2009|
+------------------------------------------+-----------+-----------+-----------+
|Sales to equity-accounted investees       |         21|         11|         24|
+------------------------------------------+-----------+-----------+-----------+
|Purchases from equity-accounted investees |          3|          2|          6|
+------------------------------------------+-----------+-----------+-----------+
|Transactions with Rautaruukki Pension     |          0|          3|          6|
|Foundation                                |           |           |           |
++---------------------------------+-------+-----------+-----------+-----------+
++---------------------------------+-------+-----------+-----------+-----------+
|                                          |30 Jun 2010|30 Jun 2009|31 Dec 2009|
+------------------------------------------+-----------+-----------+-----------+
|Trade and other receivables from related  |          6|          3|          3|
|parties                                   |           |           |           |
+------------------------------------------+-----------+-----------+-----------+
|Trade and other payables to related       |          1|          0|          1|
|parties                                   |           |           |           |
+------------------------------------------+-----------+-----------+-----------+



+--------------------+-+----------+--------------+--------------+--------------+
|INVESTMENT          | |          |              |              |              |
|COMMITMENTS (IFRS)  | |          |              |              |              |
+--------------------+-+----------+--------------+--------------+--------------+
|EUR million                      |  After 30 Jun|  After 30 Jun|  After 31 Dec|
|                                 |          2010|          2009|          2009|
+---------------------------------+--------------+--------------+--------------+
|Maintenance investments          |           187|           238|           100|
+---------------------------------+--------------+--------------+--------------+
|Development investments and      |              |              |              |
|investments in special steel     |            55|           111|            77|
|products                         |              |              |              |
+---------------------------------+--------------+--------------+--------------+
|Total                            |           242|           349|           177|
+---------------------------------+--------------+--------------+--------------+
+------------------------------------------------------------------------------+



+-------------------+-+--------------------+-----------+-----------+-----------+
|SEGMENT INFORMATION| |                    |           |           |           |
+-------------------+-+--------------------+-----------+-----------+-----------+
|EUR million                               |   Q1-Q2/10|   Q1-Q2/09|       2009|
+------------------------------------------+-----------+-----------+-----------+
|Comparable net sales                      |           |           |           |
+------------------------------------------+-----------+-----------+-----------+
|Ruukki Construction                       |        272|        278|        589|
+------------------------------------------+-----------+-----------+-----------+
|Ruukki Engineering                        |         92|        167|        263|
+------------------------------------------+-----------+-----------+-----------+
|Ruukki Metals                             |        782|        467|      1 050|
+------------------------------------------+-----------+-----------+-----------+
|Corporate management                      |          1|          0|          0|
+------------------------------------------+-----------+-----------+-----------+
|Comparable net sales, total               |      1 147|        911|      1 901|
+------------------------------------------+-----------+-----------+-----------+
|Items affecting comparability included in |         13|         33|         49|
|reported net sales                        |           |           |           |
+------------------------------------------+-----------+-----------+-----------+
|Reported net sales                        |      1 160|        944|      1 950|
+------------------------------------------+-----------+-----------+-----------+
+------------------------------------------+-----------+-----------+-----------+
|Comparable operating profit               |           |           |           |
+------------------------------------------+-----------+-----------+-----------+
|Ruukki Construction                       |        -31|        -22|        -49|
+------------------------------------------+-----------+-----------+-----------+
|Ruukki Engineering                        |        -14|         12|          2|
+------------------------------------------+-----------+-----------+-----------+
|Ruukki Metals                             |         77|       -199|       -228|
+------------------------------------------+-----------+-----------+-----------+
|Corporate management                      |         -7|         -7|        -13|
+------------------------------------------+-----------+-----------+-----------+
|Comparable operating profit, total        |         26|       -215|       -288|
+------------------------------------------+-----------+-----------+-----------+
|Items affecting comparability included in |        -28|        -14|        -35|
|reported operating profit                 |           |           |           |
+------------------------------------------+-----------+-----------+-----------+
|Reported operating profit                 |         -2|       -230|       -323|
+-------------------+-+--------------------+-----------+-----------+-----------+
+-------------------+-+--------------------+-----------+-----------+-----------+
|Net finance costs                         |        -14|        -19|        -36|
+------------------------------------------+-----------+-----------+-----------+
|Share of profit of equity-accounted       |          1|          0|          0|
|investees                                 |           |           |           |
+------------------------------------------+-----------+-----------+-----------+
|Result before income tax                  |        -16|       -249|       -359|
+------------------------------------------+-----------+-----------+-----------+
|Income tax expense                        |          3|         65|         84|
+------------------------------------------+-----------+-----------+-----------+
|Result for the period                     |        -13|       -184|       -275|
+-------------------+-+--------------------+-----------+-----------+-----------+
+-------------------+-+--------------------+-----------+-----------+-----------+
|EUR million                               |30 Jun 2010|30 Jun 2009|31 Dec 2009|
+------------------------------------------+-----------+-----------+-----------+
|Operative capital employed                |           |           |           |
+------------------------------------------+-----------+-----------+-----------+
|Ruukki Construction                       |        465|        440|        431|
+------------------------------------------+-----------+-----------+-----------+
|Ruukki Engineering                        |        165|        167|        150|
+------------------------------------------+-----------+-----------+-----------+
|Ruukki Metals                             |      1 417|      1 420|      1 321|
+------------------------------------------+-----------+-----------+-----------+
|Corporate management                      |         32|         42|         33|
+------------------------------------------+-----------+-----------+-----------+
|Operative capital employed, total         |      2 079|      2 069|      1 934|
+------------------------------------------+-----------+-----------+-----------+



+------------------------------------------------------------------------------+
|QUARTERLY SEGMENT INFORMATION                                                 |
+------------------------------------+-----+-----+-----+-----+-----+-----+-----+
|EUR million                         |Q1/09|Q2/09|Q3/09|Q4/09| 2009|Q1/10|Q2/10|
+------------------------------------+-----+-----+-----+-----+-----+-----+-----+
|Comparable net sales                |                                   |     |
+------------------------------------+-----+-----+-----+-----+-----+-----+-----+
|Ruukki Construction                 |  132|  145|  164|  147|  589|  109|  163|
+------------------------------------+-----+-----+-----+-----+-----+-----+-----+
|Ruukki Engineering                  |  100|   67|   53|   42|  263|   42|   50|
+------------------------------------+-----+-----+-----+-----+-----+-----+-----+
|Ruukki Metals                       |  249|  218|  257|  325|1 050|  348|  434|
+------------------------------------+-----+-----+-----+-----+-----+-----+-----+
|Corporate management                |    0|    0|    0|    0|    0|    0|    1|
+------------------------------------+-----+-----+-----+-----+-----+-----+-----+
|Comparable net sales, total         |  481|  430|  475|  515|1 901|  500|  647|
+------------------------------------+-----+-----+-----+-----+-----+-----+-----+
|Items affecting comparability       |   25|    8|   10|    6|   49|    5|    7|
|included in reported net sales      |     |     |     |     |     |     |     |
+------------------------------------+-----+-----+-----+-----+-----+-----+-----+
|Reported net sales                  |  506|  438|  485|  521|1 950|  505|  655|
+------------------------------------+-----+-----+-----+-----+-----+-----+-----+
+------------------------------------------------+-----+-----+-----+-----+-----+
|Comparable operating profit                     |     |     |     |     |     |
+------------------------------------+-----+-----+-----+-----+-----+-----+-----+
|Ruukki Construction                 |  -13|   -9|   -4|  -22|  -49|  -21|  -10|
+------------------------------------+-----+-----+-----+-----+-----+-----+-----+
|Ruukki Engineering                  |    9|    4|   -3|   -8|    2|   -5|   -9|
+------------------------------------+-----+-----+-----+-----+-----+-----+-----+
|Ruukki Metals                       | -102|  -97|  -39|   10| -228|   -4|   81|
+------------------------------------+-----+-----+-----+-----+-----+-----+-----+
|Corporate management                |   -3|   -4|   -3|   -3|  -13|   -4|   -3|
+------------------------------------+-----+-----+-----+-----+-----+-----+-----+
|Comparable operating profit, total  | -109| -106|  -50|  -24| -288|  -34|   59|
+------------------------------------+-----+-----+-----+-----+-----+-----+-----+
|Items affecting comparability       |     |     |     |     |     |     |     |
|included in reported operating      |   -3|  -11|   -4|  -16|  -35|   -2|  -25|
|profit                              |     |     |     |     |     |     |     |
+------------------------------------+-----+-----+-----+-----+-----+-----+-----+
|Reported operating profit           | -113| -117|  -54|  -39| -323|  -36|   34|
+------------------------------------+-----+-----+-----+-----+-----+-----+-----+
+------------------------------------+-----+-----+-----+-----+-----+-----+-----+
|Net finance costs                   |   -9|  -10|  -10|   -7|  -36|   -8|   -6|
+------------------------------------+-----+-----+-----+-----+-----+-----+-----+
|Share of profit of equity-accounted |    0|    0|    0|    0|    0|    0|    1|
|investees                           |     |     |     |     |     |     |     |
+------------------------------------+-----+-----+-----+-----+-----+-----+-----+
|Result before income tax            | -122| -127|  -64|  -46| -359|  -44|   28|
+------------------------------------+-----+-----+-----+-----+-----+-----+-----+
|Income tax expense                  |   32|   33|   19|    0|   84|   11|   -9|
+------------------------------------+-----+-----+-----+-----+-----+-----+-----+
|Result for the period               |  -90|  -94|  -45|  -46| -275|  -33|   20|
+------------------------------------+-----+-----+-----+-----+-----+-----+-----+



+---------------------------------------------------+----+-----+-----+
|ITEMS AFFECTING COMPARABILITY OF REPORTED NET SALES|    |     |     |
+---------------------------+-----+-----+-----+-----+----+-----+-----+
|EUR million                |Q1/09|Q2/09|Q3/09|Q4/09|2009|Q1/10|Q2/10|
+---------------------------+-----+-----+-----+-----+----+-----+-----+
|Ruukki Engineering         |     |     |     |     |    |     |     |
+---------------------------+-----+-----+-----+-----+----+-----+-----+
|Net sales of Mo i Rana unit|   25|    8|   10|    6|  49|    5|    7|
+---------------------------+-----+-----+-----+-----+----+-----+-----+



+----------------------------------------------------------+-----+-----+
|ITEMS AFFECTING COMPARABILITY OF REPORTED OPERATING PROFIT|     |     |
+-----------------------------+-----+-----+-----+-----+----+-----+-----+
|EUR million                  |Q1/09|Q2/09|Q3/09|Q4/09|2009|Q1/10|Q2/10|
+-----------------------------+-----+-----+-----+-----+----+-----+-----+
|Ruukki Engineering           |     |     |     |     |    |     |     |
+-----------------------------+-----+-----+-----+-----+----+-----+-----+
|Operating profit of Mo i Rana|   -3|   -6|   -4|  -16| -30|   -2|   -2|
|unit                         |     |     |     |     |    |     |     |
+-----------------------------+-----+-----+-----+-----+----+-----+-----+
|Expenses related to closure  |     |     |     |     |    |     |     |
|of Hässleholm, Oskarström    |     |   -5|     |     |  -5|     |   -1|
|and Dortmund units           |     |     |     |     |    |     |     |
+-----------------------------+-----+-----+-----+-----+----+-----+-----+
|Ruukki Metals                |     |     |     |     |    |     |     |
+-----------------------------+-----+-----+-----+-----+----+-----+-----+
|Expense caused by low        |     |     |     |     |    |     |     |
|utilisation rate related to  |     |     |     |     |    |     |  -18|
|blast furnace modernisation  |     |     |     |     |    |     |     |
+-----------------------------+-----+-----+-----+-----+----+-----+-----+
|Corporate management         |     |     |     |     |    |     |     |
+-----------------------------+-----+-----+-----+-----+----+-----+-----+
|Provision for fine regarding |     |     |     |     |    |     |     |
|price collusion in divested  |     |     |     |     |    |     |   -5|
|prestressing steel business  |     |     |     |     |    |     |     |
+-----------------------------+-----+-----+-----+-----+----+-----+-----+
|Items affecting comparability|     |     |     |     |    |     |     |
|of reported operating profit,|   -3|  -11|   -4|  -16| -35|   -2|  -25|
|total                        |     |     |     |     |    |     |     |
+-----------------------------+-----+-----+-----+-----+----+-----+-----+



+------------------------------------------------------------------------------+
|OTHER ITEMS AFFECTING COMPARABILITY OF REPORTED RESULT                        |
+-------------------------------------+-----+-----+-----+-----+----+-----+-----+
|EUR million                          |Q1/09|Q2/09|Q3/09|Q4/09|2009|Q1/10|Q2/10|
+-------------------------------------+-----+-----+-----+-----+----+-----+-----+
|Arrangement fee for revolving credit |     |   -5|     |     |  -5|     |     |
|facility (financial item)            |     |     |     |     |    |     |     |
+-------------------------------------+-----+-----+-----+-----+----+-----+-----+



Formulas for the calculation of key figures:

                              result before income tax + finance costs -
                              exchange rate gains (rolling 12 months)
Return on capital employed,
%                           = ---------------------------------------

                              total equity + loans and borrowings (average at
                              beginning and end of period)



                              result before income tax - income tax expense
                              (rolling 12 months)

Return on equity, %         = ---------------------------------------

                              total equity (average at beginning and end of
                              period)


                              total equity

Equity ratio, %             = ---------------------------------------

                              total assets - advances received


                              net interest-bearing financial liabilities

Gearing ratio, %            = ---------------------------------------

                              total equity


Net interest-bearing        = loans and borrowings - current financial assets
financial liabilities         and cash and cash equivalents


                              result for the period attributable to owners of
                              the company

Earnings per share (EPS)    = ---------------------------------------

                              weighted average number of shares outstanding
                              during the period


                              result for the period attributable to owners of
                              the company
Earnings per share (EPS),
diluted                     = ---------------------------------------

                              weighted average diluted number of shares
                              outstanding during the period


                              equity attributable to owners of the company

Equity per share            = ---------------------------------------

                              basic number of shares outstanding at the end of
                              period


                              total EUR trading of shares
Volume weighted average
price                       = ---------------------------------------

                              total number of shares traded


Market capitalisation       = basic number of shares at the end of period x
                              closing price at the end of period


Personnel on average        = total number of personnel at the end of each month
                              divided by the number of months






[HUG#1432178]





    Rautaruukki_Q2_2010_EN: 

http://hugin.info/3013/R/1432178/378430.pdf



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Source: Rautaruukki Oyj via Thomson Reuters ONE