November 1, 2006
07:59 CET
Rautaruukki's new financial targets and dividend policy
Rautaruukki Oyj Stock Exchange Release 1 November 2006 at 8.59
The Board of Directors of Rautaruukki Corporation has decided on the company's
new financial targets for the coming three years, and at the same time has
revised the company's dividend policy.
Progress is being made according to plan in implementing Rautaruukki's strategy.
The focus for Rautaruukki's business has changed to deliveries of metal-based
solutions for the construction and mechanical engineering industries. The company
has divested non-core business units and the strong balance sheet structure gives
the company the financial capabilities to continue to implement the strategy.
The priority for growth at Rautaruukki lies in construction solutions especially
in central eastern Europe, Russia and Ukraine. Through the purchase of Ventall
the company has obtained a firm footing in Russia's rapidly growing market. In
the mechanical engineering industry, Ruukki Engineering is responding to growing
demand in the lifting, handling and transportation equipment industries by
supplying high added value components and systems. Ruukki Metals is concentrating
on increasing the proportion of profitable special products in the product
portfolio. To speed up profitable organic growth, Rautaruukki is prepared and
able to make acquisitions.
Based on this growth strategy and the current structure, an annual target of 10
per cent has been set for growth in Rautaruukki's net sales. The operating profit
target has been raised from 7 per cent to 12 per cent of net sales. The target
for return on capital employed has been raised from the previous figure of 15 per
cent to 20 per cent. The target set for gearing is to keep it below 60 per cent
instead of the previous 80 per cent.
Rautaruukki's dividend policy is to pay a dividend of 40 - 60 per cent of the
result for the fiscal year. The goal is a steadily increasing dividend that takes
into account the requirements for growth in the business.
Further information:
Sakari Tamminen, President & CEO, Tel. +358 20 592 9075
Mikko Hietanen, CFO, Tel. +358 20 592 9030
Rautaruukki Corporation
Taina Kyllönen
VP, Corporate Communications
Rautaruukki supplies metal-based components, systems and integrated systems to
the construction and mechanical engineering industries. The company has a wide
selection of metal products and services. Rautaruukki has operations in 23
countries and employs 12,000 people. Net sales in 2005 totalled EUR 3.7 billion.
The company's share is quoted on the Helsinki Exchanges (Rautaruukki Oyj: RTRKS).
The Corporation has used the marketing name Ruukki since 2004.
DISTRIBUTION:
Helsinki Exchanges
Principal Media
www.ruukki.com