Proactiveinvestors recommends
Additional Information
Market: LSE
Sector: General Mining
EPIC: RKKI
1 year chart More charts
digital-look imported chart image
Deal RKKI Tax Free*
*subject to change and depends on individual circumstances.
1 day chart More charts
digital-look imported chart image
Advertisement
Watchlist/Portfolio

Add to watchlist:

Only registered members can add into watchlist !

Register here !
RUUKKI GROUP
www.ruukkigroup.fi/In_English/Investors.iw3
Deal RUUKKI GROUP Tax Free* Losses can exceed
your initial deposit *subject to change and depends on individual circumstances.

Ruukki is a growing, integrated chrome producer supplying specialist products to the expanding steel and stainless steel industries. The Group is focused on utilising its experience and technological advantages to deliver profitable and sustainable growth. The Company is listed on the NASDAQ OMX Helsinki (RUG1V) and the Main Market of...

Read more
Full RUUKKI GROUP profile here
Pdf

Ruukki's Hoyer says ferrochrome volatility is decreasing

August 16 2012, 12:06pm Today's improved outlook is due to better visibility and a belief that the remainder of the year won’t be as volatile or as poor as last year

 

Ruukki (LON:RKKI) today upgraded its outlook for the remainder of the year as it said the previously volatile ferrochrome market is stabilising.

It said full-year revenues are now expected to be in-line with last year.

This marks a notable turnaround after it warned of uncertain conditions in the first quarter of the year.

In a conference call today chief executive Thomas Hoyer said: “The recent volatility in ferrochrome prices has been huge, but when you look at realised prices in the physical market this volatility is decreasing,” he said.

“It seems that the market is finding a bottom in terms of pricing, though it is still a weak market. And we are looking forward with slightly more positivity.”

He stressed, however, that the seasonally-affected third quarter is always weaker than the rest of the year.

And unlike other ferrochrome producers, Ruukki is not expecting, or banking on, a significant rally in prices the fourth quarter.

Essentially the reasons behind today’s improved outlook comes down to better visibility and a belief that the remainder of the year won’t be as volatile or as poor as last year – when demand failed to pick up follow the summertime lull in Europe.

Hoyer explained that Ruukki’s operations are currently focussed on the production of speciality alloys, which have more stable niche markets. 

As such he says Ruukki’s operations are mainly being driven by demand for specific alloys, and production is being guided by the group’s sales team.

Ruukki reported revenues in the first six months of 2012 of €78 million versus €79.3 million in the first half of last year, while earnings increased to €6.7 million compared with €5.1 million in the corresponding period of 2011.

In the second quarter of this year production decreased by 20.1 percent to 74,181 tonnes tonnes, mainly due to the shut-down of two of the four furnaces of the Mogale alloys plant in South Africa in response to power constraints in the country and an electricity buyback programme by power group Eskom.

Ruukki’s cash flow from operations was much improved at 13.5 million, compared with minus €5.8 million in the same period of last year, and at the end of the year it had €45 million.

 

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.