Ruukki Group (LON:RKKI) chief executive Thomas Hoyer is expecting higher global demand for ferroalloy products in 2011.
As a result he reckons the Finnish metals group will achieve higher prices and see an improved financial performance in the current financial year.
Ruukki has recently made a number of key strategic moves to refocus itself as a pure mining and minerals business. At the end of 2010 it acquired the then AIM-listed Chromex Mining and it has finalised the sale of its housing business over recent months.
Hoyer’s assertion came in the group’s interim report for the first quarter, ended 31 March 2011, which was released to the London Stock Exchange this morning.
In the first quarter production increased significantly year-on-year from 29,661 to 87,808 tonnes, which helped boost its revenue and earnings (EBITDA) financial comparatives.
In the three month period revenue from continuing operations was up about 15.6 percent to €34.8 million and earnings turned positive from a 0.5 loss last year to €3.5 million in Q1 2011.
It reported a €3.1 million loss, which narrowed from a €5.3 million in the same period last year. As of the 31 March the group said it had liquid funds of €89.2 million.
"I am pleased to report an increase in the revenue and improvement in the profitability of our operations for the quarter,” Ruukki chief Hoyer said.
“Profitable growth is our key focus in 2011.
“Our balance sheet and financial position is strong and our liquidity improved substantially as a result of the sale of the house building business.”