Finland-based steelmaker Ruukki has issued its financial results for the third quarter and the first nine months of the current year.
In July-September, Ruukki posted an operating loss of €18 million, compared to an operating profit of €1 million in the corresponding quarter of 2011, mostly because of weaker price levels for steel products and higher raw materials costs. Net sales revenues in the third quarter amounted to €674 million, unchanged from the third quarter of the previous year.
In the first nine months of the year, Ruukki registered an operating loss of €26 million compared to an operating profit of €96 million in the first nine months of 2011. Net sales revenues in the given period amounted to €2.11 billion, up 1.63 percent year on year.
According to Ruukki's statement, order intake was €675 million in the third quarter, down one percent year on year. In January-September, order intake increased by five percent year on year to €2.11 billion.
Ruukki Metals' steel output increased by 37.75 percent year on year in the third quarter to 540,000 mt, while in the first nine months the steel output amounted to 1.7 million mt, up 3.7 percent year on year. The company stated that its capacity utilization rate was 76 percent in the third quarter due to weakened market conditions and normal July maintenance shutdowns.
According to Ruukki's revised guidance for 2012, net sales are estimated to remain at the same level as the previous year, while the operating profit for the second half of the year is estimated to be weaker than for the first half.
Ruukki said that efficiency improvement projects are required considering the performance of the past quarter due to the prevailing uncertain market environment. The company indicated that the projects started earlier in the year in steel and construction businesses have continued to progress better than previously anticipated and the company currently expects to achieve targeted savings of around €100 million through efficiency actions.