Finnish steel and construction group Rautaruukki Oyj has reiterated its full year earnings guidance that consolidated net sales are estimated to grow approximately 15% to 20% YoY, while profitability is estimated to improve compared to 2010.

Mr Sakari Tamminen CEO of Rautaruukki Oyj said that "The debt crisis in Europe has increased uncertainty on the financial markets and weakened general confidence in the economy. However, growth forecasts in Ruukki's main markets in the Nordic countries, Central Eastern Europe and Russia are still relatively more positive than elsewhere in Europe."

He added that "Our main objectives for the latter part of the year are to improve operational efficiency, free up working capital and thus improve cash flow. Due to efficiency measures already completed, our cost structure is considerably lighter than before the previous economic crisis in 2008-09."

In its construction business, the manufacturing and sales network in Central Eastern Europe and a strong foothold on the Russian steel construction markets provides a good foundation for future growth. In the engineering business, focus is on products in which it can capitalize more strongly than earlier on its own design and materials expertise. In the steel business, the investments in technology and production capacity needed to increase the share of special steel products have already been made.

(Sourced from www.marketwatch.com)