Raute Corporation - Interim report January 1 - June 30, 2013

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RAUTE CORPORATION INTERIM REPORT JULY 30, 2013 at 9:00 a.m.

  
RAUTE CORPORATION - INTERIM REPORT JANUARY 1-JUNE 30, 2013

- The Group’s net sales, EUR 43.2 million (MEUR 37.5), increased 15 percent on the comparison period. The order intake was EUR 34 million (MEUR 76).
- The operating profit was EUR +0.6 million (MEUR +0,1). The result before tax was EUR +0.8 million (MEUR +0.1).
- Earnings per share were EUR +0.16 (EUR -0.05).
- Second quarter net sales were EUR 19.8 million and operating profit was EUR 0.3 million negative. The order intake was EUR 24 million and the order book at the end of the reporting period amounted to EUR 40 million.
- The outlook for financial performance remains unchanged. Raute’s net sales and operating profit for 2013 are expected to remain at the same level as in 2012.


TAPANI KIISKI, PRESIDENT AND CEO: NEW ORDERS A BRIGHT SPOT IN THE SECOND QUARTER

The second quarter of 2013 was a reflection of the first one: the amount of new orders taken in was fair and clearly above the level in the same period last year. We did not, however, achieve the growth in net sales or the continuation of our positive performance that we had hoped for.

Due to the prevailing weak situation in the fields of construction and commerce, our customer’s market situation continues to be uncertain in many market areas. In such a situation no new investments are being launched. In the short term, however, capacity utilization is at a good level, and there is a demand for projects to improve competitiveness. For this reason the demand for smaller investments and services, especially modernizations, has been good. This is reflected by our order intake during the second quarter, which has been reasonable, despite the lack of single major investments.

Our net sales remained low. This was due to the scheduling of new orders and the modest order intake during the previous two quarters. Our negative operating profit was a serious disappointment, but it reflects the level of our net sales.

Some bigger investments still in a planning and negotiation phase are pending. The realization of these projects is sometimes frustratingly deferred due to economic uncertainties and the continually tightening financial markets. However, I believe that one or more of the bigger projects presently under negotiation will proceed to a decision before the end of this year. Despite the disappointment about the second quarter’s results, we still have a good chance of achieving the same level of net sales and operating profit as in the previous year, as we predicted before. In contrast to the last year with its giant projects, our business in 2013 will consist of a large number of small deliveries and services.

SECOND QUARTER OF 2013

Order intake and order book

The order intake in the second quarter totalling EUR 24 million (MEUR 15) was on a satisfactory level. Technology services accounted for EUR 9 million (MEUR 8) of the order intake, remaining on a similarly good level as in the first quarter.
 
The most significant new orders concerned drying lines for the USA and Chile.

The order book grew during the second quarter by EUR 3 million, amounting to EUR 40 million at the end of the period (MEUR 73).

Net sales

Second-quarter net sales were EUR 19.8 million (MEUR 22.4), down 15 percent on the first quarter. The decrease in net sales was due to the scheduling of the order book and the modest order intake during the previous two quarters.

Technology services accounted for 42 percent of total net sales (34%).

Result and profitability

Operating profit for the second quarter was EUR 0.3 million negative (MEUR 0.6 positive) and accounted for -1 percent (3%) of net sales. The second quarter result was EUR 0.2 million negative (MEUR 0.3 positive), and earnings per share were EUR -0.05 (EUR 0.07).

The result was negative due to low net sales.


RAUTE CORPORATION - INTERIM REPORT JANUARY 1-JUNE 30, 2013

BUSINESS ENVIRONMENT

Market situation in customer industries

Raute’s customers in the veneer, plywood and LVL (Laminated Veneer Lumber) industries are engaged in the manufacture of wood products used in investment commodities and are thus highly affected by fluctuations in construction, housing-related consumption, international trade, and transportation.

The uncertainty related to the global economic and money-market trend is still being upheld by the risks associated with the growing debts of certain European countries, the future of the euro and by the fears of a slowdown in economic growth in Asian countries. For Raute’s customer industries, the market situation has continued to be uncertain in a number of market areas, although the customer industries’ capacity utilization rates have remained good. In North America, there are signs that the market situation is improving, but this is not yet reflected in concrete terms in the investment decisions of the plywood and LVL industries.

Demand for wood products technology and technology services

In the second quarter of 2013, our customers’ investments were focused on relatively small machine and equipment investments and modernizations. Demand for maintenance and spare parts services continued at a good level. This bears testimony to the fact that the utilization rates of Raute’s customers’ production facilities remained good. The demand for technology services developed positively in North America, which has for a long period been suffering from a difficult market situation.

Several large projects encompassing single production lines and mill-scale deliveries that are in the planning and negotiation phase are pending. Customers will decide on and realize these projects only once they are more confident that demand has recovered permanently and once financing for the projects can be arranged.

ORDER INTAKE AND ORDER BOOK

Raute serves the wood products industry with a full-service concept based on service that encompasses the entire life cycle of the delivered equipment. Raute’s business consists of project deliveries and technology services. Project deliveries comprise complete production machinery for new mills, production lines and individual machines and equipment. Additionally, Raute’s full-service concept includes comprehensive technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations as well as consulting, training and reconditioned machinery.

During the reporting period, order intake remained at a low level, amounting to EUR 34 million (MEUR 76). The second quarter accounted for 70 percent of the total order intake. 28 percent of the new orders came from Europe (13%), 28 percent from Russia (12%), 26 percent from North America (4%), 13 percent from South America (69%) and 5 percent from Asia-Pacific (2%). The strong fluctuation in the distribution of new orders between the various market areas is typical for project-focused business.

The order intake in technology services amounted to EUR 18 million (MEUR 13), an increase of 43 percent on the comparison period. The growth resulted predominantly from modernization orders.

The order book weakened during the reporting period by EUR 10 million, amounting to EUR 40 million at the end of the period (MEUR 73).

COMPETITIVE POSITION

Raute’s competitive position is good. Raute’s solutions help customers in securing their delivery and service capabilities throughout the life cycle of the equipment or service offered by Raute. In such investments, the supplier’s overall expertise and extensive and diverse technology offering play a key role. The competitive edge provided by Raute is also a major draw when customers select their cooperation partners. Raute’s strong financial position and its long-term dedication to serving selected customer industries also enhance its credibility and improve its competitive position as a company that carries out long-term investment projects.

NET SALES

Net sales for the reporting period totaled EUR 43.2 million (MEUR 37.5), up 15 percent on the comparison period.

Of the total net sales for the reporting period, Europe accounted for 47 percent (29%), South America for 24 percent (36%), Russia for 15 percent (20%), North America for 10 percent (11%), and Asia-Pacific for 5 percent (4%).

Net sales of technology services grew 7 percent on the comparison period and accounted for 33 percent (37%) of total net sales.

RESULT AND PROFITABILITY

Operating profit for the reporting period was EUR 0.6 million positive (MEUR 0.1 positive) and accounted for 1 percent of net sales (0%).

The result before tax for the reporting period was EUR 0.8 million positive (MEUR +0.1). The profit for the reporting period was EUR 0.7 million positive (MEUR -0.2). Earnings per share (undiluted) were EUR +0.16 (EUR -0.05).


CASH FLOW AND BALANCE SHEET

The Group’s financial position is good. At the end of the reporting period, gearing was -49 percent (-60%) and the equity ratio 53 percent (45%). Other fluctuations in balance sheet working capital items and the key figures based on them are due to differences in the timing of customer payments and the cost accumulation from project deliveries, which is typical of the project business.

The Group’s cash and cash equivalents, including financial assets recognized at fair value through profit or loss, stood at EUR 19.8 million (MEUR 25.8) at the end of the reporting period. Operating cash flow was EUR 6.2 million positive (MEUR 4.4 positive). Cash flow from investment activities totaled EUR 1.1 million negative (MEUR 1.1 negative). Cash flow from financing activities totaled EUR 4.7 million negative (MEUR 3.2 negative), including dividend payments of EUR 2.0 million and debt repayments of EUR 2.7 million.

Interest-bearing liabilities amounted to EUR 8.6 million (MEUR 13.4) at the end of the reporting period.

The Parent company Raute Corporation has a EUR 10 million commercial paper program, which allows the company to issue commercial papers maturing in less than one year.

RESEARCH AND DEVELOPMENT COSTS AND CAPITAL EXPENDITURE

Raute’s goal is to be the leading technology supplier in its field, and to invest strongly in continuous research and development, particularly in plywood and LVL manufacturing technology and the supporting automation and instrumentation applications, especially machine vision.

Research and development costs in the reporting period totaled EUR 1.4 million (MEUR 1.2), representing 3.1 percent of net sales (3.1%).

Investments totaled EUR 1.8 million (MEUR 1.8) in the reporting period. The majority of investments were related to productional investments at the mills in Nastola, Finland, and in China.

PERSONNEL

At the end of the reporting period, the Group’s personnel numbered 533 (505). Group companies outside Finland accounted for 26 percent (25%) of employees.

Converted to full-time employees (“effective headcount”), the average number of employees was 503 (469) during the reporting period.

SHARES

The number of Raute Corporation’s shares at the end of the reporting period totaled 4,004,758, of which 991,161 were series K shares (ordinary share, 20 votes/share) and 3,013,597 series A shares (1 vote/share). The shares have a nominal value of 2 euros. Series K and A shares confer equal rights to dividends and company assets.

Series K shares can be converted to series A shares under the terms set out in section 3 of the Articles of Association. If an ordinary share is transferred to a new owner who has not previously held series K shares, the new owner must notify the Board of Directors of this in writing and without delay. Other holders of series K shares have the right to redeem the share under the terms specified in Article 4 of the Articles of Association.

Raute Corporation’s series A shares are listed on NASDAQ OMX Helsinki Ltd. The trading code is RUTAV. Raute Corporation has signed a market making agreement with Nordea Bank Finland Plc in compliance with the Liquidity Providing (LP) requirements issued by NASDAQ OMX Helsinki Ltd.

The company’s market capitalization at the end of the reporting period was EUR 35.0 million (MEUR 30.2), with series K shares valued at the closing price of series A shares on June 30, 2013, that is EUR 8.74 (EUR 7.55).

STOCK OPTION SCHEME 2010

At the end of the reporting period, the Group’s key personnel held altogether 78,000 of the company’s series A stock options, 78,000 series B stock options and 78,000 series C stock options. The company holds 2,000 stock options on each of its series A, B and C series stock options, i.e. a total of 6,000 stock options. The subscription period for series A stock options began on March 1, 2013. Stock options have not been exercised to subscribe for shares. More detailed information concerning the stock option system has been published on the company’s website.

SHAREHOLDERS

The number of shareholders totaled 1,682 at the beginning of the year and 1,775 at the end of the reporting period. Series K shares were held by 49 private individuals (49) at the end of the reporting period. The Board of Directors, the Group’s President and CEO as well as the Executive Group held altogether 231,779 company shares, equalling 5.8 percent (5.8%) of the company shares and 11.2 percent (11.1%) of the votes at the end of the reporting period. Nominee-registered shares accounted for 3.3 percent (1.5%) of shares.

No flagging notifications were given to the company during the reporting period.

CORPORATE GOVERNANCE

Raute Corporation complies with the Finnish Corporate Governance Code 2010 for listed companies issued by the Securities Market Association on June 15, 2010.

Raute deviates from the Code’s recommendation 22 on appointing members to the Appointments Committee in that one member to the Committee is elected from outside the Board of Directors, as per the company’s Administrative Instructions, from among the representatives of major shareholders who have significant voting rights. The Board views this exception as justified, taking into consideration the company’s ownership structure and the possibility to consider the expectations of major shareholders as early as in the preparation phase of selecting members of the Board of Directors.

Raute deviates from recommendation 9 on the number, composition and competence of the directors in that the company does not have both genders represented on the Board. When seeking new members, the Appointments Committee was unable to find any female candidates fulfilling the criteria set for the members of the Board of Directors.

ANNUAL GENERAL MEETING 2013

Raute Corporation’s Annual General Meeting was held on April 8, 2013. The Annual General Meeting adopted the financial statements for 2012, granted discharge from liability to those accountable and decided to distribute a dividend of EUR 0.50 per share.

The Annual General Meeting elected the company’s Board of Directors for a term that expires at the end of the Annual General Meeting of 2014. Mr. Erkki Pehu-Lehtonen was elected Chairman of the Board, Mr. Mika Mustakallio Vice-Chairman and Mr. Joni Bask, Mr. Risto Hautamäki, Mr. Ilpo Helander and Mr. Pekka Suominen were elected Board members.

The authorized public accounting company PricewaterhouseCoopers was chosen as auditor, with Authorized Public Accountant Janne Rajalahti as the principal auditor.

The Annual General Meeting decided that the remuneration paid to the Chairman of the Board will continue to be EUR 40,000 and to the Vice-Chairman of the Board and Board members EUR 20,000 for the term of office and that the Board members’ traveling expenses will be compensated in accordance with the company’s travel policy. The auditors’ remuneration will be paid on the basis of reasonable invoicing.

The Annual General Meeting authorized the Board of Directors to decide on the repurchase of the company’s series A shares with assets from the company’s non-restricted equity and an issue of a maximum of 400,000 of these shares.

More detailed information on the decisions of the Annual General Meeting can be found in the stock exchange release issued on April 8, 2013.

DIVIDENDS FOR THE 2012 FINANCIAL YEAR

The Annual General Meeting held on April 8, 2013 decided to pay a dividend of EUR 0.50 per share for the financial year 2012. The total amount of dividends is EUR 2.0 million, series A shares accounting for EUR 1,506,798.50 (EUR 904,079.10) and series K shares for EUR 495,580.50 (EUR 297,348.30). The dividend payment date was April 18, 2013.

BOARD OF DIRECTORS AND BOARD COMMITTEES

The Board of Directors elected by Raute Corporation’s Annual General Meeting on April 8, 2013 held an organizing meeting.

Based on the evaluation of independence, Chairman Erkki Pehu-Lehtonen and members Joni Bask, Risto Hautamäki, Ilpo Helander, Mika Mustakallio, and Pekka Suominen are independent of the company. The Chairman of the Board (Mr. Erkki Pehu-Lehtonen) and two Board members (Mr. Ilpo Helander and Mr. Risto Hautamäki) are independent of major shareholders.

Raute Corporation’s Board of Directors has an Appointments Committee and a Working Committee. The Appointments Committee is chaired by Mr. Erkki Pehu-Lehtonen and its members are Mr. Mika Mustakallio and Mr. Ville Korhonen, who was elected by the major shareholders from amongst their number. The Working Committee is chaired by Mr. Erkki Pehu-Lehtonen and its members are Mr. Mika Mustakallio and Mr. Risto Hautamäki. The Audit Committee’s tasks are handled by the Board of Directors.


BUSINESS RISKS

Risks in the near term continue to be driven by the global economic situation and the uncertainty concerning the development of the financial markets. During the reporting period, there were no essential changes in the business risks described in the 2012 Board of Directors’ Report and Financial Statements. The most significant risks for Raute in the near term are related to the development of demand and the order book after the delivery of the present order book has taken place.

OUTLOOK FOR 2013

Raute’s business operations are characterized by the sensitivity of investment commodity demand to cyclical fluctuations in the global economy and the financial markets.

Major uncertainty still overshadows the development of the global economy and financial markets due to the hazards of growing debt in a few European countries and the insecurity associated with the recovery of the US economy. Reports of the slowdown of economic growth in Asia, and in particular China, also add to the uncertainty. The market situation for Raute’s customer industries is expected to remain uncertain.

However, improvement investments in the plywood industry to ensure quality and cost competitiveness and to maintain market shares are expected to be at a reasonable level in the near future, provided that the economic uncertainty does not spiral into a new crisis. In addition, several production line and mill-scale investment projects are being planned. The implementation and timing of these projects will depend on prospective investors’ confidence that the market for wood products will remain at a reasonable level. The availability of financing for customer projects in some market areas will also be an important factor.

Thanks to its strong financial and market position and the development measures carried out, Raute is well positioned to respond to demand once the markets recover.

No changes have occurred in Raute’s profit outlook for the whole of 2013. Uncertainty concerning the development of the economy in 2013 will be reflected in the investment decisions of Raute’s customers and in the volume of new orders. Based on the existing order book and projects in the negotiation phase, Raute’s net sales and operating profit for 2013 are expected to remain at the same level as in 2012.


TABLES SECTION OF THE INTERIM REPORT

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME   1.4.–30.6. 1.4.–30.6. 1.1.–30.6. 1.1.–30.6. 1.1.–31.12.
(EUR 1 000) Note 2013 2012 2013 2012 2012
             
NET SALES 3,4,5 19 766 22 365 43 152 37 473 101 273
             
Change in inventories of finished goods and work in progress   -610 226 -246 691 500
             
Other operating income   15 60 35 107 1 423
             
Materials and services   -8 906 -12 055 -21 885 -18 861 -55 725
Employee benefits expense 13 -7 190 -6 997 -14 061 -13 631 -28 752
Depreciation and amortization   -619 -495 -1 098 -996 -1 968
Other operating expenses   -2 740 -2 467 -5 272 -4 694 -11 720
Total operating expenses   -19 456 -22 014 -42 318 -38 182 -98 165
             
OPERATING PROFIT (LOSS)   -286 637 623 89 5 031
% of net sales   -1 3 1 0 5
             
Financial income   72 181 472 389 482
Financial expenses   -75 -150 -299 -345 -738
             
PROFIT (LOSS) BEFORE TAX   -289 669 796 133 4 775
% of net sales   -1 3 2 0 5
             
Income taxes   96 -406 -150 -334 -1 759
PROFIT (LOSS) FOR THE PERIOD   -193 263 646 -201 3 016
% of net sales   -1 1 1 -1 3
             
Other comprehensive income items:            
Exchange differences on translating foreign operations 19 18 13 31 80
Comprehensive income items for the period, net of tax 19 18 13 31 80
             
COMPREHENSIVE PROFIT (LOSS) FOR THE PERIOD -174 281 659 -171 3 096
             
Profit (loss) for the period attributable to          
Equity holders of the Parent company   -193 263 646 -201 3 016
             
Comprehensive profit (loss) for the period attributable to          
Equity holders of the Parent company   -174 281 659 -171 3 096
             
Earnings per share for profit (loss) attributable          
to Equity holders of the Parent company, EUR          
Undiluted earnings per share   -0,05 0,07 0,16 -0,05 0,75
Diluted earnings per share   -0,05 0,07 0,16 -0,05 0,75
             
Shares, 1 000 pcs            
Adjusted average number of shares   4 005 4 005 4 005 4 005 4 005
Adjusted average number of shares diluted   4 013 4 006 4 013 4 006 4 008

  

CONSOLIDATED BALANCE SHEET   30.6. 30.6. 31.12.
(EUR 1 000)   Note 2013 2012 2012
ASSETS          
Non-current assets          
Intangible assets   8 3 558 2 358 3 204
Property, plant and equipment   8 8 147 8 152 7 892
Other financial assets     789 789 789
Non-current receivables and other receivables   - 225 -
Deferred tax assets     133 1 303 60
Total non-current assets     12 628 12 827 11 944
           
Current assets          
Inventories     5 628 6 884 7 130
Accounts receivables and other receivables   5 15 778 18 816 24 427
Income tax receivable     20 162 37
Cash and cash equivalents     19 839 25 799 19 548
Total current assets     41 265 51 661 51 143
           
TOTAL ASSETS     53 893 64 488 63 087
           
EQUITY AND LIABILITIES          
Equity attributable to Equity holders of         
the Parent company          
Share capital     8 010 8 010 8 010
Fair value reserve and other reserves     6 947 6 776 6 862
Exchange differences     116 54 103
Retained earnings     7 164 6 150 6 150
Profit (loss) for the period     646 -201 3 016
Share of shareholders' equity that belongs to the owners of the Parent company     22 883 20 788 24 141
Total equity     22 883 20 788 24 141
           
Non-current liabilities          
Non-current provisions     64 90 56
Deferred tax liability     304 - 174
Non-current interest-bearing liabilities   9 4 139 8 430 5 866
Pension obligations     88 94 90
Total non-current liabilities     4 595 8 614 6 186
           
Current liabilities          
Current provisions     979 1 180 1 134
Current interest-bearing liabilities   9 4 497 4 976 5 594
Current advance payments received   5 10 837 18 158 12 776
Income tax liability     82 - -
Trade payables and other liabilities     10 020 10 771 13 255
Total current liabilities     26 416 35 086 32 759
           
Total liabilities     31 010 43 700 38 946
           
TOTAL EQUITY AND LIABILITIES     53 893 64 488 63 087

  

CONSOLIDATED STATEMENT OF CASH FLOWS   1.1.–30.6. 1.1.–30.6. 1.1.–31.12.
(EUR 1 000)     2013 2012 2012
           
CASH FLOW FROM OPERATING ACTIVITIES        
Proceeds from customers     45 277 44 045 90 385
Other operating income     35 107 1 423
Payments to suppliers and employees   -39 312 -38 839 -89 379
Cash flow before financial items and taxes   6 000 5 313 2 429
Interest paid from operating activities   -209 -284 -529
Dividends received from operating activities   180 118 118
Interests received from operating activities   102 227 269
Other financing items from operating activities   105 -423 -275
Income taxes paid from operating activities   2 -564 -75
NET CASH FLOW FROM OPERATING ACTIVITIES (A) 6 181 4 385 1 938
           
CASH FLOW FROM INVESTING ACTIVITIES        
Purchase of property, plant and equipment and intangible assets -1 194 -1 161 -3 055
Proceeds from sale of property, plant and equipment and intangible assets 36 25 160
NET CASH FLOW FROM INVESTING ACTIVITIES (B) -1 157 -1 136 -2 895
           
CASH FLOW FROM FINANCING ACTIVITIES        
Repayments of current borrowings     -1 100 - -
Repayments of non-current borrowings     -1 625 -1 970 -4 000
Dividends paid     -2 002 -1 201 -1 201
NET CASH FLOW FROM FINANCING ACTIVITIES (C) -4 727 -3 172 -5 201
            
NET CHANGE IN CASH AND CASH EQUIVALENTS (A+B+C) 296 78 -6 159
increase (+)/decrease (-)          
           
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD* 19 548 25 674 25 674
NET CHANGE IN CASH AND CASH EQUIVALENTS   296 78 -6 159
EFFECTS OF EXCHANGE RATE CHANGES ON CASH -5 48 33
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD* 19 839 25 799 19 548
           
CASH AND CASH EQUIVALENTS IN THE BALANCE            
SHEET AT THE END OF THE PERIOD          
Cash and cash equivalents     19 839 25 799 19 548
TOTAL     19 839 25 799 19 548
           
*Cash and cash equivalents comprise assets at fair value through profit and loss, as well as cash  
and bank receivables, which will be due within the following three months' period.    

  

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY        
    Share Invested      
  Share premium non-restricted Other Exchange Retained
(EUR 1 000) capital account equity reserve reserves differences earnings
EQUITY at Jan. 1, 2013 8 010 0 6 498 364 103 9 166
Comprehensive profit (loss) for the period          
Profit (loss) for the period - - - - - 646
Other comprehensive income items:            
   Exchange differences on translating foreign operations - - - - 13 -
Total comprehensive profit (loss) for the period 0 0 0 0 13 646
Transactions with owners            
Equity-settled share-based            
transactions - - - 85 - -
Reclassifications between items - - - - - -
Dividends paid - - - - - -2 002
Total transactions with owners 0 0 0 85 0 -2 002
EQUITY at June 30, 2013 8 010 0 6 498 449 116 7 809
             
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (CONTINUE)    
  To the owners of        
(EUR 1 000) the Parent company       TOTAL
EQUITY at Jan. 1, 2013   24 141       24 141
Comprehensive profit (loss) for the period          
Profit (loss) for the period   646       646
Other comprehensive income items:            
   Exchange differences on translating foreign operations   13       13
Total comprehensive profit (loss) for the period   659       659
Transactions with owners            
Equity-settled share-based            
transactions   85       85
Reclassifications between items   0       0
Dividends paid   -2 002       -2 002
Total transactions with owners   -1 917       -1 917
EQUITY at June 30, 2013   22 883       22 883
             
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY      
    Share Invested      
  Share premium non-restricted Other Exchange Retained
(EUR 1 000) capital account equity reserve reserves differences earnings
EQUITY at Jan. 1, 2012 8 010 6 498 0 187 23 7 351
Comprehensive profit (loss) for the period          
Profit (loss) for the period - - - - - -201
Other comprehensive income items:            
   Exchange differences on translating foreign operations - - - - 31 -
Total comprehensive profit (loss) for the period 0 0 0 0 31 -201
Transactions with owners            
Equity-settled share-based            
transactions - - - 92 - -
Reclassifications between items - -6 498 6 498 - - -
Dividends paid - - - - - -1 201
Total transactions with owners 0 -6 498 6 498 92 0 -1 201
EQUITY at June 30, 2012 8 010 0 6 498 278 54 5 949
             
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (CONTINUE)    
  To the owners of        
(EUR 1 000) the Parent company       TOTAL
EQUITY at Jan. 1, 2012   22 069       22 069
Comprehensive profit (loss) for the period          
Profit (loss) for the period   -201       -201
Other comprehensive income items:            
   Exchange differences on translating foreign operations   31       31
Total comprehensive profit (loss) for the period   -171       -171
Transactions with owners            
Equity-settled share-based            
transactions   92       92
Reclassifications between items   0       0
Dividends paid   -1 201       -1 201
Total transactions with owners   -1 110       -1 110
EQUITY at June 30, 2012   20 788       20 788

 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS     
     
1. General information     

Raute Group is a globally operating technology and service company. Raute's customers are companies operating in the wood products industry that manufacture veneer, plywood and LVL. Raute's technology offering covers machinery and equipment for the entire production process. Raute's full-service concept is based on product life-cycle management. In addition to a broad range of machines and equipment, our solutions cover technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations. Raute's head office is located in Nastola, Finland. Its other production plants are in the Vancouver area in Canada, in the Shanghai area in China, and in Kajaani, Finland. The company's sales network has a global reach.     
     
Raute Group's Parent company, Raute Corporation, is a Finnish public limited liability company established in accordance with Finnish law (Business ID FI01490726). Its series A shares are quoted on NASDAQ OMX Helsinki Ltd, under Industrials. Raute Corporation is domiciled in Lahti. The address of its registered office is Rautetie 2, FI-15550 Nastola, and its postal address is P.O. Box 69, FI-15551 Nastola.     
     
Raute Corporation's consolidated financial statement information is available online at www.raute.com or at the head office of the Parent company, Rautetie 2, FI-15550 Nastola, Finland.     
     
Raute Corporation's Board of Directors has on July 30, 2013 reviewed the Interim financial report for January 1 - June 30, 2013, and approved it to be published in compliance with this release.     
     
2. Accounting principles     
Raute Corporation's Interim financial report for January 1 - June 30, 2013 has been prepared in accordance with standard IAS 34 Interim Financial Reporting. The Interim financial report does not contain full notes and other information presented in the financial  
statements, and therefore the Interim financial report should be read in conjunction with the Financial statements published for 2012.     
     
Raute Corporation's Interim financial report for January 1 - June 30, 2013 has been prepared in accordance with the International Financial Reporting Standards, IFRS, accepted for application in the EU. Preparations have complied with the IAS and IFRS      
standards, as well as SIC and IFRIC interpretations, effective on June 30, 2013. The notes to the Interim financial statements also comply with Finnish accounting legislation. The presented Interim financial report figures have not been audited.     
     
The Interim financial report has been prepared according to the same accounting principles as those applied in the Annual financial statement for 2012, with the exception of certain new or revised standards, interpretations and amendments to existing standards which the Group has applied as of January 1, 2013.The impact of the new and revised standards has been presented in the Annual financial statements for 2012. The adoption of these standards has not had an impact  on the Interim financial report.     
     
All of the figures presented in the Interim financial report are in thousand euro, unless otherwise stated. Due to the rounding of the figures in the financial statement tables, the sums of figures may deviate from the sum total presented in the table. Figures in parentheses refer to the corresponding figures in the comparison period.     
     
The preparation of Interim financial report in conformity with IFRS standards requires management to make certain critical accounting estimates and to exercise its judgment in applying the Group's accounting policies. Because the forward-looking estimates and assumptions are based on management's best knowledge at the reporting date, they comprise risks and uncertainties. The actual results may differ from these estimates.      
     
3. Segment information     
Operational segment
     
Continuing operations of Raute Group belong to the wood products technology segment.     
     
Due to Raute's business model, operational nature and administrative structure, the operational segment to be reported as wood products technology segment is comprised of the whole Group and the information on the segment is consistent with that of the Group. Segment reporting follows the principles of presentation of the consolidated financial statements. 

 

  30.6.   30.6.   31.12.  
Wood products technology 2013   2012   2012  
Net sales 43 152   37 473   101 273  
Operating profit (loss) 623   89   5 031  
Assets 53 893   64 488   63 087  
Liabilities 31 010   43 700   38 946  
Capital expenditure 1 768   1 811   3 529  
             
Assets of the wood products technology segment by 30.6.   30.6.   31.12.  
geographical location 2013 % 2012 % 2012 %
Finland 47 787 89 56 731 88 53 631 85
China 2 401 4 2 576 4 4 406 7
North America 2 337 4 3 568 6 3 437 5
Russia 1 146 2 1 282 2 1 257 2
South America 166 0 185 0 199 0
Other 56 0 148 0 158 0
TOTAL 53 893 100 64 488 100 63 087 100
             
Capital expenditure of the wood products technology segment by 30.6.   30.6.   31.12.  
geographical location 2013 % 2012 % 2012 %
Finland 1 358 77 1 784 98 2 980 84
China 391 22 17 1 517 15
North America 13 1 6 0 6 0
Russia 2 0 1 0 1 0
South America 1 0 1 0 22 1
Other 4 0 2 0 2 0
TOTAL 1 768 100 1 811 100 3 529 100

 
4. Net sales     
The main part of the net sales is comprised of project deliveries related to wood products technology and modernizations in technology services, which are treated as long-term projects. The rest of the net sales is comprised of technology services     
provided to the wood products industry such as spare parts and maintenance services as well as services provided to the development of customers' business.     
     
Project deliveries and modernizations related to technology services include both product and service sales, making it impossible to give a reliable presentation of the breakdown of the Group's net sales into purely product and service sales.     
     
Large delivery projects can temporarily increase the shares of various customers of the Group’s net sales to more than ten percent. At the end of the period, the Group had two customers (2), whose customized share of the Group's net sales      
temporarily exceeded ten percent. The total share of these customers was 39 percent.

 

          1.1.–30.6. 1.1.–30.6.   1.1.–31.12.  
Net sales by market area 2013 % 2012 % 2012 %
EMEA (Europe and Africa) 20 303 47 10 915 29 22 179 22
LAM (South America) 10 152 24 13 502 36 52 588 52
CIS (Russia) 6 433 15 7 484 20 14 454 14
NAM (North America) 4 230 10 3 962 11 8 469 8
APAC (Asia-Pacific) 2 035 5 1 611 4 3 583 4
TOTAL 43 152 100 37 473 100 101 273 100
             
Finland accounted for 4 percent (8 %) of net sales.          

 

5. Long-term projects     30.6. 30.6. 31.12.
      2013 2012 2012
Net sales          
Net sales by percentage of completion     35 284 28 140 85 267
Other net sales     7 868 9 333 16 006
TOTAL     43 152 37 473 101 273
           
Project revenues entered as income from currently undelivered          
long-term projects recognized by percentage of completion    108 543 45 804 89 601
           
Amount of long-term project revenues not yet entered as income (order book) 38 864 72 363 49 040
           
Projects for which the value by percentage of completion exceeds      
advance payments invoiced           
- aggregate amount of costs incurred and recognized profits less recognized losses 74 463 31 149 64 872
- advance payments received     65 336 22 140 48 372
Gross amount due from customers     9 127 9 009 16 499
           
Projects for which advance payments invoiced exceed the value by      
percentage of completion            
- aggregate amount of costs incurred and recognized profits less recognized losses 34 080 14 655 27 890
- advance payments received     44 542 32 149 40 394
Gross amount due to customers     10 462 17 494 12 504
           
Specification of combined asset and liability items                  
Advance payments paid     213 674 1 021
Advance payments received included in inventories in the balance sheet 213 674 1 021
           
Advance payments in the balance sheet     10 837 18 158 12 776
           
6. Number of personnel, persons     30.6. 30.6. 31.12.
      2013 2012 2012
Effective, on average        503 469 480
In books, on average         511 478 488
In books, at the end of period         533 505 503
- of which personnel working abroad        140 125 132
           
7. Research and development costs     30.6. 30.6. 31.12.
      2013 2012 2012
Research and development costs for the period   1 356 1 162 2 516
Amortization of previously capitalized development costs 238 73 126
Development costs recognized as an asset in the balance sheet    -388 -327 -1 024
Research and development costs entered as expense for the period 1 206 907 1 618

  

8. Changes in Intangible assets and in Property,    30.6. 30.6. 31.12.
plant and equipment     2013 2012 2012
Intangible assets          
Carrying amount at the beginning of the period   14 019 12 448 12 447
Exchange rate differences       7 15 7
Additions       753 1 157 2 198
Reclassifications between items         17 -679 -634
Carrying amount at the end of the period   14 795 12 942 14 019
           
Accumulated depreciation and amortization at the beginning of the period -10 815 -11 015 -11 014
Exchange rate differences        -4 -13 -5
Accumulated depreciation and amortization of disposals and reclassifications - 679 679
Depreciation and amortization for the period   -419 -234 -474
Accumulated depreciation and amortization at the end of the period -11 237 -10 583 -10 815
           
Book value of Intangible assets, at the beginning of the period 3 204 1 433 1 433
Book value of Intangible assets, at the end of the period 3 558 2 358 3 204
           
Property, plant and equipment          
Carrying amount at the beginning of the period   41 673 44 463 44 463
Exchange rate differences       -372 342 88
Additions       1 016 654 1 331
Disposals       -29 -7 -370
Reclassifications between items         -17 -3 774 -3 839
Carrying amount at the end of the period   42 271 41 679 41 673
           
Accumulated depreciation and amortization at the beginning of the period -33 782 -36 236 -36 236
Exchange rate differences        338 -302 -70
Accumulated depreciation and amortization of disposals and reclassifications - 3 774 4 019
Depreciation and amortization for the period   -680 -761 -1 494
Accumulated depreciation and amortization of the period -34 124 -33 527 -33 782
           
Book value of Property, plant and equipment, at the beginning of the period 7 892 8 227 8 226
Book value of Property, plant and equipment, at the end of the period 8 147 8 152 7 892
           
9. Interest-bearing liabilities     30.6. 30.6. 31.12.
      2013 2012 2012
Non-current interest-bearing liabilities recognized at amortized cost  4 139 8 430 5 866
Current interest-bearing liabilities     4 497 4 976 5 594
TOTAL     8 636 13 406 11 461
           
Maturities of the interest-bearing financial  liabilities at June 30, 2013    
Financial liability      Current Non-current Total
Pension loans (TyEL)     1 000 - 1 000
Loans from financial institutions     3 497 4 139 7 636
Total     4 497 4 139 8 636

  

10. Pledged assets and contingent liabilities     30.6. 30.6. 31.12.
      2013 2012 2012
On behalf of the Parent company          
Loans from financial institutions     7 636 10 307 9 117
Business mortgages     6 700 6 700 6 700
           
Pension loans (TYEL)     1 000 3 000 2 000
Business mortgages     300 900 600
Credit insurance agreements     700 2 100 1 400
           
Other liabilities     - 100 100
Real estate mortgages     - 101 101
           
Mortgage agreements on behalf of subsidiaries        
Loans from financial institutions     247 251 244
Business mortgages     247 200 244
           
Commercial bank guarantees on behalf of the Parent company and subsidiaries 10 779 35 421 39 600
           
Other own obligations          
Rental liabilities maturing within one year     816 928 868
Rental liabilities maturing in one to five years   2 552 2 645 2 682
Rental liabilities maturing more than five years   318 811 519
Total     3 687 4 383 4 069

 

11. Related party transactions
No loans are granted to the company's management. On June 30, 2013, the Parent Company Raute Corporation had loan receivables from its subsidiary Raute Service LLC EUR 355 thousand (EUR 355 thousand) and from Raute Canada
Ltd. EUR 729 thousand (EUR 1 554 thousand).

No pledges have been given or other commitments made on behalf of the company's management and shareholders.

 

12. Derivatives     30.6. 30.6. 31.12.
      2013 2012 2012
           
Nominal values of forward contracts in foreign currency              
Economic hedging          
- Related to financing     1 408 1 826 2 093
- Related to the hedging of net sales     4 177 2 006 1 763
           
Fair values of forward contracts in foreign currency              
Economic hedging          
- Related to financing     5 7 -8
- Related to the hedging of net sales     -114 57 18
           
Interest rate and currency swap agreements        
- Nominal value     3 014 5 125 4 117
- Fair value     -50 -139 -4

  

13. Share-based payments
The fair value of the options granted according to the 2010 stock option plan is recognized as an expense in the income statement during the earning period of the options. An expense of EUR 85 thousand (EUR 92 thousand) was recognized
for the options to the income statement during the period.

14. Dividend distribution
Raute Corporations' Annual General Meeting held on April 8, 2013, decided, according to the Board of Dirctors' proposal, to distribute a dividend of EUR 0,50 per share to be paid for series A and K shares, a total of EUR 2 002 thousand. The dividend
payment date was April 18, 2013.

15. Financial assets and liabilities that are measured at fair value
At the end of the reporting period June 30, 2013, the fair value of the financial assets categorized at fair value on hierarchy level 3 was EUR 789 thousand. The methods of fair value determination correspond the valuation principles presented in the Annual
financial statements for 2012. There were no transfers between the hierarchy levels 1 and 2 during the reporting period.

 

16. Exchange rates used          
      1.1.–30.6. 1.1.–30.6. 1.1.–31.12.
Income statement, euros     2013 2012 2012
CNY (Chinese juan)     8,1294 8,1917 8,1096
RUB (Russian rouble)     40,7641 39,6978 39,9238
CAD (Canadian dollar)     1,3345 1,3041 1,2848
USD (US dollar)     1,3135 1,2968 1,2856
SGD (Singapore dollar)     1,6331 1,6391 1,6062
CLP (Chilean peso)     628,7305 638,2838 624,7032
           
      30.6. 30.6. 31.12.
Balance sheet, euros     2013 2012 2012
CNY (Chinese juan)     8,0905 7,9669 8,1809
RUB (Russian rouble)     42,8450 41,3700 40,3295
CAD (Canadian dollar)     1,3714 1,2871 1,3137
USD (US dollar)     1,3080 1,2590 1,3194
SGD (Singapore dollar)     1,6545 1,5974 1,6111
CLP (Chilean peso)     663,3357 632,4559 625,1146

  

FINANCIAL DEVELOPMENT     30.6. 30.6. 31.12.
      2013 2012 2012
Change in net sales, %     15,2 -0,8 36,3
Exported portion of net sales, %     96,2 91,7 93,9
Return on investment (ROI), %     6,2 2,7 15,0
Return on equity, ROE, %     5,5 -1,9 13,1
Interest-bearing net liabilities, EUR million     -11,2 -12,4 -8,1
Gearing, %     -49,0 -59,6 -33,5
Equity ratio, %     53,1 44,9 48,0
           
Gross capital expenditure, EUR million   1,8 1,8 3,5
% of net sales     4,1 4,8 3,5
           
Research and development costs, EUR million   1,4 1,2 2,5
% of net sales     3,1 3,1 2,5
           
Order book, EUR million     40 73 50
Order intake, EUR million     34 76 116
           
SHARE-RELATED DATA     30.6. 30.6. 31.12.
      2013 2012 2012
Earnings per share, (EPS), undiluted, EUR   0,16 -0,05 0,75
Earnings per share, (EPS), diluted, EUR   0,16 -0,05 0,75
Equity to share, EUR     5,71 5,19 6,03
Dividend per share, EUR     - - 0,50
Dividend per profit, %     - - 66,40
Effective dividend return, %     - - 5,60
           
Development in share price (series A shares)        
Lowest share price for the period, EUR   8,33 6,18 6,18
Highest share price for the period, EUR   9,33 9,24 9,24
Average share price for the period, EUR   8,78 8,44 8,22
Share price at the end of the period, EUR   8,74 7,55 9,00
           
Market value of capital stock          
- Series K shares, EUR million**     8,7 7,5 8,9
- Series A shares, EUR million     26,3 22,8 27,1
Total, EUR million     35,0 30,2 36,0
**Series K shares valued at the value of series A shares.         
           
Trading of the company's shares (series A shares)      
Trading of shares, pcs     268 519 125 951 302 096
Trading of shares, EUR million     2,4 1,1 2,4
           
Number of shares          
- Series K shares, ordinary shares (20 votes/share)     991 161 991 161 991 161
- Series A shares (1 vote/share)     3 013 597 3 013 597 3 013 597
Total     4 004 758 4 004 758 4 004 758
           
Number of shares, weighted average, 1 000 pcs   4 005 4 005 4 005
Number of shares diluted, 1 000 pcs     4 013 4 006 4 008
           
Number of shareholders     1 775 1 653 1 682

  

DEVELOPMENT OF Q 3 Q 4 Q 1 Q 2 Rolling Rolling
QUARTERLY RESULTS 2012 2012 2013 2013 1.7.2012 1.7.2011
(EUR 1 000)        
          30.6.2013 30.6.2012
             
NET SALES 29 886 33 914 23 386 19 766 106 952 74 034
             
Change in inventories of finished          
goods and work in progress -742 551 364 -610 -437 -311
             
Other operating income 61 1 256 20 15 1 352 174
             
Materials and services -17 475 -19 388 -12 979 -8 906 -58 749 -37 307
Employee benefits expense -7 083 -8 038 -6 871 -7 190 -29 182 -25 466
Depreciation and amortisation -482 -491 -479 -619 -2 071 -2 043
Other operating expenses -2 346 -4 680 -2 532 -2 740 -12 299 -9 101
Total operating expenses -27 386 -32 597 -22 862 -19 456 -102 300 -73 918
             
OPERATING PROFIT (LOSS) 1 818 3 125 909 -286 5 566 -20
% of net sales 6 9 4 -1 5 0
             
Financial income 130 -37 400 72 565 571
Financial expenses -267 -126 -224 -75 -692 -758
             
PROFIT (LOSS) BEFORE TAX 1 680 2 962 1 085 -289 5 438 -207
% of net sales 6 9 5 -1 5 0
             
Income taxes -451 -973 -246 96 -1 575 -344
             
PROFIT (LOSS) FOR THE PERIOD 1 229 1 989 839 -193 3 863 -551
% of net sales 4 6 4 -1 4 -1
             
Attributable to             
Equity holders of the Parent company 1 229 1 989 839 -193 3 863 -551
             
Earnings per share, EUR            
Undiluted earnings per share 0,31 0,50 0,21 -0,05 0,96 -0,14
Diluted earnings per share 0,31 0,50 0,21 -0,05 0,96 -0,14
             
Shares, 1 000 pcs                 
Adjusted average number of shares 4 005 4 005 4 005 4 005 4 005 4 005
Adjusted average number of shares            
diluted 4 007 4 008 4 017 4 013 4 013 4 006
             

  

20 LARGEST SHAREHOLDERS AT JUNE 30, 2013 Number of series Number of series Total number % of total Total number % of voting
By number of shares K shares  A shares of shares  shares of votes rights
1. Sundholm Göran - 624 398 624 398 15,6 624 398 2,7
2. Mandatum Life Unit-Linked - 181 900 181 900 4,5 181 900 0,8
3. Mustakallio Kari Pauli 60 480 56 900 117 380 2,9 1 266 500 5,5
4. Laakkonen Mikko - 115 349 115 349 2,9 115 349 0,5
5. Suominen Pekka 48 000 62 429 110 429 2,8 1 022 429 4,5
6. Suominen Tiina Sini-Maria 48 000 62 316 110 316 2,8 1 022 316 4,5
7. Siivonen Osku Pekka 50 640 53 539 104 179 2,6 1 066 339 4,7
8. Kirmo Kaisa Marketta 50 280 41 826 92 106 2,3 1 047 426 4,6
9. Sijoitusrahasto Alfred Berg Small Cap Finland - 90 143 90 143 2,3 90 143 0,4
10. Mustakallio Mika Tapani 57 580 29 270 86 850 2,2 1 180 870 5,2
11. Keskiaho Kaija Leena 33 600 51 116 84 716 2,1 723 116 3,2
12. Särkijärvi Anna Riitta 60 480 22 009 82 489 2,1 1 231 609 5,4
13. Relander Harald - 74 000 74 000 1,8 74 000 0,3
14. Mustakallio Ulla Sinikka 53 240 15 862 69 102 1,7 1 080 662 4,7
15. Mustakallio Marja Helena 43 240 16 047 59 287 1,5 880 847 3,9
16. Särkijärvi Timo 12 000 43 256 55 256 1,4 283 256 1,2
17. Särkijärvi-Martinez Anu Riitta 12 000 43 256 55 256 1,4 283 256 1,2
18. Suominen Jukka Matias 24 960 27 964 52 924 1,3 527 164 2,3
19. Mustakallio Kai Henrik 47 420 4 594 52 014 1,3 952 994 4,2
20. Keskinäinen työeläkevakuutusyhtiö Varma - 51 950 51 950 1,3 51 950 0,2
Total 601 920 1 668 124 2 270 044 56,7 13 706 524 60,0
             
  Number of series Number of series Total number % of total Total number % of voting
By number of votes K shares  A shares of shares shares of votes rights
1. Mustakallio Kari Pauli 60 480 56 900 117 380 2,9 1 266 500 5,5
2. Särkijärvi Anna Riitta 60 480 22 009 82 489 2,1 1 231 609 5,4
3. Mustakallio Mika Tapani 57 580 29 270 86 850 2,2 1 180 870 5,2
4. Mustakallio Ulla Sinikka 53 240 15 862 69 102 1,7 1 080 662 4,7
5. Siivonen Osku Pekka 50 640 53 539 104 179 2,6 1 066 339 4,7
6. Kirmo Kaisa Marketta 50 280 41 826 92 106 2,3 1 047 426 4,6
7. Suominen Pekka 48 000 62 429 110 429 2,8 1 022 429 4,5
8. Suominen Tiina Sini-Maria 48 000 62 316 110 316 2,8 1 022 316 4,5
9. Suominen Jussi 48 000 - 48 000 1,2 960 000 4,2
10. Mustakallio Kai Henrik 47 420 4 594 52 014 1,3 952 994 4,2
11. Mustakallio Marja Helena 43 240 16 047 59 287 1,5 880 847 3,9
12. Mustakallio Risto Knut kuolinpesä 42 240 - 42 240 1,1 844 800 3,7
13. Keskiaho Kaija Leena 33 600 51 116 84 716 2,1 723 116 3,2
14. Sundholm Göran - 624 398 624 398 15,6 624 398 2,7
15. Kirmo Lasse 30 000 11 711 41 711 1,0 611 711 2,7
16. Keskiaho Juha-Pekka 27 880 9 500 37 380 0,9 567 100 2,5
17. Suominen Jukka Matias 24 960 27 964 52 924 1,3 527 164 2,3
18. Keskiaho Marjaana 24 780 21 500 46 280 1,2 517 100 2,3
19. Kultanen Leea Annikka 22 405 8 031 30 436 0,8 456 131 2,0
20. Molander Sole 20 160 - 20 160 0,5 403 200 1,8
Total 793 385 1 119 012 1 912 397 47,8 16 986 712 74,4

 

MANAGEMENTS' AND PUBLIC INSIDERS' SHAREHOLDING AT JUNE 30, 2013 AND
NOMINEE-REGISTERED SHARES AT JUNE 30, 2013

  Number of series K shares Number of series A shares Total number of shares % of total shares Total number of votes % of voting rights
The Board of Directors, The Group's President and CEO and Executive Board 122 880 108 899 231 779 5,8 2 566 499 11,2
Public insiders’ holding at June 30, 2013 122 880 108 899 231 779 5,8 2 566 499 11,2
             
The figures include the holdings of their own, minor children and control entities.      
             
Nominee-registered shares at June 30, 2013 - 131 670 131 670 3,3 131 670 0,6



RAUTE CORPORATION
Board of Directors

 

PRESS CONFERENCE ON JULY 30, 2013 AT 2 P.M.:
A briefing will be held for analysts, investors and the media on July 30, 2013 at 2 p.m. at Scandic Simonkenttä Hotel, Roba cabinet, Simonkatu 9, Helsinki. The interim report will be presented by Mr. Tapani Kiiski, President and CEO, and Ms. Arja Hakala, CFO.

NEXT INTERIM REPORT:
Raute Corporation will publish their next interim report for the period January 1 to September 30 on October 30, 2013.
 

FURTHER INFORMATION:
Mr. Tapani Kiiski, President and CEO, Raute Corporation, tel. +358 3 829 3560, mobile +358 400 814 148
Ms. Arja Hakala, CFO, Raute Corporation, tel. +358 3 829 3293, mobile +358 400 710 387

DISTRIBUTION:
NASDAQ OMX Helsinki Ltd, main media, www.raute.com


RAUTE IN BRIEF:
Raute is a technology and service company that operates worldwide. Raute’s customers are companies operating in the wood products industry that manufacture veneer, plywood and LVL (Laminated Veneer Lumber). The technology offering covers machinery and equipment for the entire production process. As a supplier of mill-scale projects Raute is a global market leader both in the plywood and LVL industries. Additionally, Raute’s full-service concept includes technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations. Raute’s head office is located in Nastola, Finland. Its other production plants are in the Vancouver area of Canada, in the Shanghai area of China, and in Kajaani, Finland. Raute’s net sales in 2012 were EUR 101.3 million. The number of personnel at the end of 2012 was 503.

More information about the company can be found at www.raute.com.