Finnish steel manufacturer and supplier Rautaruukki (OMX: RTRKS) showed clear improvement during second quarter of 2011. Order intake grew to 672 million Euro with net sales at 730 million. Comparable result margin before taxes was 8.5%. Second quarter EPS was 32 cents.
Rautaruukki has at times been valued ridiculously low but held up better than most in the financial crisis. Unlike its domestic rival Outokumpu, which has long suffered from poor management decisions and is now trying to rebound under a new CEO, Rautaruukki has been able to ride through tough times relatively unscathed under stable management. Right now you could not say Rautaruukki's stock, a claim to a cyclical firm after all, to be a particularly cheap at conventional valuations.
Special steel products and basic steel business showed good progress. Construction business returned to profit just barely but engineering unit still posted a loss. Ruukki maintains 2011 guidance of 25% net sales growth and clearly improved profit compared to 2010. It says that some uncertainty has arisen but general outlook is still favourable.
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