RAUTE CORPORATION - INTERIM REPORT JANUARY 1 - MARCH 31, 2008
RAUTE CORPORATION INTERIM REPORT
29 APRIL 2008 AT 09.00 AM
RAUTE CORPORATION - INTERIM REPORT JANUARY 1 - MARCH 31, 2008
- First quarter net sales amounted to EUR 23.9 million (MEUR 28.9), down 17
percent.
- Operating profit was EUR 1.2 million (MEUR 1.9) and profit before tax EUR 1.3
million (MEUR 2.2).
- Earnings per share were EUR 0.24 (EUR 0.41).
- Order intake amounted to EUR 33 million (MEUR 14). The order book at the end
of the reporting period, EUR 65 million (MEUR 68), stood at a good level.
- Raute is well positioned to continue its good development in 2008.
MR. TAPANI KIISKI, PRESIDENT AND CEO: MARKET SITUATION REMAINED GOOD
The current year started off favorably for Raute, despite the fact that our
first quarter net sales remained fairly low. This was predictable and resulted
from the order book scheduling. This kind of large quarterly fluctuation in net
sales is totally normal for project business. Order intake stood at a good level
in the first part of the year, and the order book for the rest of the year is
already so strong that I do not see any significant risk to the net sales growth
that we are targeting this year.
Considering that our net sales remained low, our result for the first quarter
was good. With similar net sales, we recorded a loss in the third quarter of
2006. In addition, we have, in our result for the first part of the year, made a
provision worth about half a million euros for results related to expectations
of continued very poor market situation in North America.
We expect our market situation to remain good regardless of the increasing
global economic uncertainty. We are currently in the process of negotiating some
promising projects, which also forecasts a good order intake for the coming
months. Technology services also seem to be headed for a good year in terms of
sales, with the exception of North America.
We seek to continue on the path of improving profit development for this year,
too. Our resource and loading situation will pose a special challenge for us
this year. As most of the orders are scheduled for the latter part of the year,
flexibility is required from both our own organization and our partners, and
pressures from costs related to capacity are building up. The fact that most of
the demand comes from outside North America puts an uneven load on the resources
of our Finnish and North American units. We have started measures to ensure that
we have the right resources at the right time and in the right place.
MARKET SITUATION
Market situation in customer industries
The market situation for the plywood industry remained good except for the North
American markets. Plywood production volumes, order books and prices were at a
good level during the reporting period. The strong growth in demand for plywood
and the increase in prices seen in 2007, especially in the first part of the
year, have, however, leveled out. Despite the falling demand and declining
production volumes, plywood prices have remained at a reasonable level even in
North America. The uncertainty in the plywood markets has, however, increased.
The LVL industry also enjoyed a good market situation outside North America.
North America's share of LVL production is so high that the slowdown in the
construction market led to a temporary decline in LVL production on a global
scale.
The market situation remained good for Raute's smaller customer industries. As a
result of the high level of consumption in housing and interior decoration,
demand for parquet and decorative veneer and for coated and otherwise
further-processed particleboard and MDF products was at a good level.
Demand for wood products technology
Demand for plywood technology was brisk throughout the reporting period in all
market areas, except for North America. Russia and Europe showed the strongest
demand. Demand was good in Asia, Australia and New Zealand, too, but most of the
projects in these areas are still at a very early stage. Several mill-scale
projects are also being planned.
Demand for investments in the LVL industry is strongly dependent on the level of
activity and outlook of the construction industry, which have weakened globally.
Regardless of this development in the market situation, projects related to LVL
production are being planned in both North America and other market areas.
Demand for technology services is brisk outside North America.
Order intake and order book
Raute's business consists of project deliveries and technology services to the
wood products industry. Project deliveries encompass complete mills, production
lines, and individual machines and equipment units. Technology services include
maintenance, spare parts services, modernizations, consulting, training, and
sales of reconditioned machinery.
The first-quarter order intake amounted to EUR 33 million (MEUR 14). New orders
for project deliveries stood at a good level, at EUR 27 million (MEUR 5), of
which Europe accounted for 47 percent, Russia for 44 percent, North America for
8 percent and other market areas for 2 percent. The single most important order
was for several plywood production lines for the Sveza Group's Manturovo plant
in Russia. New orders also include peeling lines to Russia, France and Poland.
Order intake for technology services only amounted to EUR 6 million (MEUR 9) for
the reporting period. No major orders for modernization projects were placed
during the first quarter.
The order book was boosted by EUR 9 million during the reporting period and
stood at EUR 65 million (MEUR 68) at the end of the period.
Competitive position
The large number of new orders received during the first quarter is an
indication of Raute's strong competitive position in Russia and Europe,
particularly in peeling technology. A decision has been made to strengthen sales
to the Russian market through local presence by creating an officially
accredited representative office in Moscow.
The continued weakening of the US dollar against the euro and the Canadian
dollar is eroding Raute's cost competitiveness. Raute is facing this challenge
by focusing on the enhancement of its operations and the development of its
partner network.
NET SALES AND RESULT
Net sales for the reporting period totaled EUR 23.9 million (MEUR 28.9), down 17
percent on the comparison period. The decline in net sales was due to the
scheduling of new project orders received during the previous year.
Europe's share of net sales rose to 50 percent (31%), and Russia's to 31 percent
(21%). North America's share was 13 percent (32%) and the share of other market
areas 6 percent (16%). Net sales were generated exclusively by project
deliveries and technology services related to the wood products technology
business. Technology services accounted for 22 percent (22%) of net sales for
the reporting period.
The Group's operating profit fell to EUR 1.2 million (MEUR 1.9) and accounted
for 5.0 percent (6.5%) of net sales. First quarter profitability was affected by
the 17 percent decline in net sales over the comparison year and by the
provision of EUR 0.5 million taken in anticipation of outcomes related to the
poor market situation that is continuing in North America.
Profit before tax for the reporting period was EUR 1.3 million (MEUR 2.2) and
profit EUR 1.0 million (MEUR 1.6). Earnings per share were EUR 0.24 (EUR 0.41).
FINANCING
The Group's financial position remained good. At the end of the year, gearing
was -76.0 percent (-39.4%) and equity ratio 65.7 percent (60.8%). The balance
sheet total rose by EUR 20.8 million during the reporting period, totaling EUR
75.6 million (MEUR 56.4) at the end of the period. The fluctuation in balance
sheet items and the key figures based on them is a result of differences in the
timing of customer payments and the cost accumulation from project deliveries,
which is typical of project business.
Liquid assets stood at EUR 27.0 million (MEUR 11.7) and were up as a result of
the advance payments received for new orders. Operating cash flow was EUR 16.5
million (MEUR -10.3). Cash flow from investment activities totaled EUR -0.9
million (MEUR -0.4). Cash flow from financing activities totaled EUR
-0.0 million (MEUR -1.7).
Interest-bearing liabilities amounted to EUR 0.5 million (MEUR 0.6) at the end
of the reporting period. Unused long-term credit limits amounted to EUR 15
million. The company also has a EUR 10 million commercial paper program.
RESEARCH AND DEVELOPMENT COSTS AND CAPITAL EXPENDITURES
Research and development costs totaled EUR 0.9 million (MEUR 1.0), representing
3.6 percent (3.5%) of net sales.
Investments totaled EUR 0.9 million (MEUR 0.4) and were mainly focused on the
development of production operations in the Shanghai and Nastola units and on
product development.
PERSONNEL
The Group's headcount at the end of the reporting period was 578 (556). The
number of personnel increased in the units in China and Finland and decreased in
North America. Group companies outside Finland accounted for 24 percent (23%) of
employees. Converted to full-time employees, the average number of personnel was
568 (546).
EVENTS AFTER THE REPORT PERIOD
Annual General Meeting
Raute Corporation's Annual General Meeting held on April 2, 2008 adopted the
financial statements for 2007, granted discharge from liability to those
accountable and decided to distribute a dividend of EUR 1.00 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 2009. Mr. Jarmo
Rytilahti was elected Chairman of the Board, Ms. Sinikka Mustakallio
Vice-Chairman and Mr. Ilpo Helander, Mr. Mika Mustakallio, Mr. Panu Mustakallio
and Mr. Jorma Wiitakorpi as Board members.
Authorized Public Accountants Ms. Anna-Maija Simola and Mr. Antti Unkuri were
elected as auditors, and Ernst&Young Oy, an authorized public accounting
company, as deputy auditor.
The Annual General Meeting authorized the Board of Directors to decide on the
repurchase of a maximum of 400,000 Raute Corporation series A shares with the
company's distributable assets. The Annual General Meeting authorized the Board
of Directors to decide on the directed issue of a maximum of 400,000 of the
company's series A shares.
Dividend for the financial year 2007
The Annual General Meeting decided to distribute a dividend of EUR 1.00 per
share for 2007. The total amount of dividends is EUR 4.0 million, series A
shares accounting for EUR 3,013,597 (EUR 2,109,517.90) and series K shares for
EUR 991,161.00 (EUR 693,812.70). The dividend payment date was April 14, 2008.
Corporate Governance
All of the Board members are independent of the company. Chairman Mr. Jarmo
Rytilahti and two of the members (Mr. Ilpo Helander and Mr. Jorma Wiitakorpi)
are independent of major shareholders.
Mr. Jarmo Rytilahti continues as Chairman of the Appointments Committee, and Ms.
Sinikka Mustakallio and Mr. Ville Korhonen - a representative of several major
shareholders - act as its members. The Working Committee continues to be chaired
by Mr. Jarmo Rytilahti and its members are Ms. Sinikka Mustakallio and Mr. Jorma
Wiitakorpi.
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 two euros. Series K shares can be converted to series A shares
under the terms described in section 3 of the Articles of Association. If a
series K share is transferred to a new owner who does not previously hold series
K shares, other shareholders of the K series have the right to redeem the share
under the terms described in Section 4 of the Articles of Association.
Raute Corporation's series A shares are listed on the OMX Nordic Exchange,
Helsinki. 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 the OMX Nordic Exchange, Helsinki.
The company's market capitalization at the end of the reporting period was EUR
60.0 million (MEUR 53.3), with series K shares valued at the closing price of
series A shares on March 31, 2008, that is EUR 14.97 (EUR 13.30).
Other share-related information is presented in the figures section of this
report.
Board authorizations
The company's Board of Directors has been authorized by the Annual General
Meeting to decide on the buyback and directed issue of a maximum of 400,000 of
the company's series A shares. The authorizations are effective until the next
Annual General Meeting. The Board of Directors has not exercised this
authorization.
SHAREHOLDERS
The number of shareholders totaled 1,312 at the beginning of the year and 1,371
at the end of the reporting period. Series K shares are held by 46 private
individuals (46). Management held 4.7 percent (4.5%) of the company shares and
9.1 percent (9.0%) of the votes. Administratively registered shares accounted
for 2.0 percent (1.3%) of shares.
The company did not possess company shares during the reporting period or hold
them as security.
No flagging notifications were given to the company in the reporting period.
SEASONAL FLUCTUATION IN BUSINESS
The Group's net sales and working capital fluctuate every quarter due to
different types of project deliveries and their schedules. Business does not
involve systematic seasonal changes, with the exception of technology services
delivered to Finland, many of which take place during service shutdowns in the
summer.
BUSINESS RISKS
Changes in business risks during the reporting period
There have been no essential changes in business risks during the reporting
period.
Hedging of foreign currency receivables
Items related to business payments and denominated in foreign currency are
hedged with currency derivatives when contracts take effect.
Forward contracts in Canadian and US dollars related to the economic hedging of
payments from binding sales agreements had a nominal value of EUR 2.6 million
(MEUR 0.9) at the end of the reporting period. There were no forward contracts
related to fair value hedging at the end of the reporting period (nominal value
MEUR 6.4).
Forward contracts in Canadian dollars related to the economic hedging of
financing items had a nominal value of EUR 3.2 million at the end of the
reporting period (MEUR 2.6).
OUTLOOK FOR 2008
Despite the increasing general economic uncertainty, the market situation of
Raute's customer industries is expected to remain generally good, with the
exception of North America. Demand for investments is particularly brisk in
Russia. Planning of new mill-scale investments continues in various market
areas, but there is still uncertainty on the timing of the decision making.
The market outlook for technology services is good throughout the year, even
though Raute's net sales growth in technology services will probably remain
modest as a result of the decline in orders from North America.
As most of Raute's net sales are generated in the summer and during the latter
part of the year and come from outside North America, pressure on capacity costs
increases over the previous year. Based on a strong order book and continued
good demand for investments and services in the plywood industry, Raute is well
positioned to continue its good development in 2008.
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| CONSOLIDATED FINANCIAL STATEMENTS JANUARY 1 - MARCH | | |
| 31, 2008 | | |
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| Figures are unaudited | | | | |
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| (EUR 1 000) | | | | |
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| CONSOLIDATED INCOME STATEMENT | Note |1.1.-31.3| 1.1.-31.3.|1.1.-31.12.|
| | | | | |
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| | | 2008 | 2007 | 2007 |
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| | | | | |
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| NET SALES | 2, | 23 910 | 28 882 | 110 799 |
| | 3, 4 | | | |
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| | | | | |
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| Other operating income | | 27 | 38 | 461 |
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| | | | | |
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| Increase (+) or decrease (-) in | | | |
| inventories of finished | | | |
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| goods and work in progress | | 196 | 246 | 42 |
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| | | | | |
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| Materials and services | | 11 661 | 16 997 | 60 999 |
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| Expenses from employee benefits | 9 | 7 131 | 7 007 | 28 875 |
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| Depreciation, amortization and | | 641 | 653 | 2 654 |
| impairment charges | | | | |
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| Other operating expenses | | 3 497 | 2 618 | 10 166 |
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| Total operating expenses | 7 | 22 931 | 27 276 | 102 695 |
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| | | | | |
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| OPERATING PROFIT | | 1 202 | 1 891 | 8 607 |
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| % of net sales | | 5 | 7 | 8 |
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| | | | | |
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| Financial income | | 453 | 312 | 660 |
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| Financial expenses | | -330 | -51 | -291 |
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| | | | | |
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| PROFIT BEFORE TAX | | 1 325 | 2 151 | 8 976 |
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| % of net sales | | 6 | 7 | 8 |
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| | | | | |
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| Income taxes | 6 | -373 | -517 | -2 375 |
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| | | | | |
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| PROFIT FOR THE PERIOD | | 952 | 1 634 | 6 601 |
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| % of net sales | | 4 | 6 | 6 |
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| | | | | |
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| Attributable to | | | | |
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| Equity holders of the Parent | | 952 | 1 634 | 6 601 |
| company | | | | |
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| | | | | |
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| Earnings per share, EUR | | | | |
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| Undiluted earnings per share | | 0,24 | 0,41 | 1,65 |
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| Diluted earnings per share | | 0,24 | 0,41 | 1,65 |
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| | | | | |
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| Shares, 1 000 pcs | | | | |
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| Adjusted average number of shares | | 4 005 | 4 005 | 4 005 |
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| Adjusted average number of shares | | 4 005 | 4 005 | 4 005 |
| diluted | | | | |
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| CONSOLIDATED BALANCE SHEET | Note | 31.3. | 31.3. | 31.12. |
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| | | 2008 | 2007 | 2007 |
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| ASSETS | | | | |
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| Non-current assets | | | | |
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| Intangible assets | | 3 046 | 2 834 | 2 546 |
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| Tangible assets | | 10 979 | 12 327 | 10 993 |
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| Available-for-sale investments | | 449 | 395 | 449 |
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| Deferred tax assets | | 570 | 361 | 275 |
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| Total | | 15 044 | 15 917 | 14 263 |
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| | | | | |
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| Current assets | | | | |
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| Inventories | | 5 207 | 5 163 | 4 515 |
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| Accounts receivables and other | 4 | 28 430 | 23 593 | 24 739 |
| receivables | | | | |
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| Financial assets at fair value | | 2 099 | 10 315 | 2 144 |
| through profit or loss | | | | |
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| Cash and cash equivalents | | 24 853 | 1 369 | 9 140 |
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| Total | | 60 590 | 40 441 | 40 537 |
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| | | | | |
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| TOTAL ASSETS | 2 | 75 634 | 56 358 | 54 800 |
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| | | | | |
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| SHAREHOLDERS' EQUITY AND | | | | |
| LIABILITIES | | | | |
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| Shareholders' equity | | | | |
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| Share capital | | 8 010 | 8 010 | 8 010 |
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| Share premium | | 6 498 | 6 498 | 6 498 |
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| Other funds | 9 | -340 | -203 | 161 |
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| Retained earnings | | 19 679 | 12 234 | 11 924 |
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| Profit for the period | | 952 | 1 634 | 6 601 |
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| Share of shareholders' equity | | | | |
| that belongs | | | | |
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| to owners of the Parent | | 34 799 | 28 173 | 33 194 |
| company | | | | |
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| Total shareholders' equity | | 34 799 | 28 173 | 33 194 |
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| | | | | |
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| Long-term liabilities | | | | |
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| Provisions | | 392 | 111 | 286 |
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| Deferred tax liabilities | | 662 | 1 086 | 676 |
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| Long-term interest-bearing | | 277 | 317 | 277 |
| liabilities | | | | |
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| Total | | 1 331 | 1 514 | 1 239 |
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| | | | | |
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| Current liabilities | | | | |
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| Provisions | | 1 825 | 1 610 | 971 |
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| Pension obligations | | 240 | 316 | 260 |
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| Short-term interest-bearing | | 214 | 277 | 213 |
| liabilities | | | | |
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| Advance payments received | 4 | 22 631 | 10 032 | 7 590 |
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| Current tax liabilities | | 1 179 | 0 | 851 |
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| Trade and other payables | | 13 416 | 14 435 | 10 481 |
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| Total | | 39 504 | 26 671 | 20 367 |
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| | | | | |
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| Total liabilities | | 40 835 | 28 185 | 21 605 |
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| | | | | |
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| TOTAL SHAREHOLDERS' EQUITY AND | 75 634 | 56 358 | 54 800 |
| LIABILITIES | | | |
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| CONSOLIDATED CASH FLOW STATEMENT| |1.1.-31.3|1.1.-31.3.|1.1.-31.12.|
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| | | | 2008 | 2007 | 2007 |
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| | | | | | |
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| CASH FLOW FROM OPERATING | | | | | |
| ACTIVITIES | | | | | |
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| Proceeds from sales | | | 37 619 | 18 221 | 96 117 |
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| Proceeds from other | | | 24 | 38 | 114 |
| operating income | | | | | |
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| Payments of operating | | | -20 890 | -28 405 | -104 963 |
| expenses | | | | | |
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| Cash flow before | | | 16 753 | -10 146 | -8 732 |
| financial items and taxes | | | | | |
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| Interests and other operating | | -340 | -48 | -394 |
| financial expenses paid | | | | |
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| Interests and other | | | 464 | 210 | 639 |
| income received | | | | | |
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| Dividends received | | | 18 | 101 | 115 |
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| Income taxes paid | | | -372 | -410 | -1 843 |
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| NET CASH FLOW FROM OPERATING | | 16 522 | -10 294 | -10 214 |
| ACTIVITIES (A) | | | | |
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| | | | | | |
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| CASH FLOW FROM INVESTING | | | | | |
| ACTIVITIES | | | | | |
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| Capital expenditure in tangible and | | -852 | -353 | -1 964 |
| intangible assets | | | | |
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| Purchases of | | | 0 | 0 | -74 |
| available-for-sale as | | | | | |
| investments | | | | | |
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| Proceeds from sale of tangible and | | 0 | 0 | 1 310 |
| intangible assets | | | | |
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| NET CASH FLOW FROM INVESTING | | -852 | -353 | -728 |
| ACTIVITIES (B) | | | | |
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| | | | | | |
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| CASH FLOW FROM FINANCING | | | | | |
| ACTIVITIES | | | | | |
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| Repayments of long-term and | | -2 | 1 000 | 1 000 |
| short-term loan receivables | | | | |
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| Increase of short-term | | | 1 | 127 | 63 |
| liabilities | | | | | |
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| Repayment of long-term | | | 0 | 0 | -40 |
| liabilities | | | | | |
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| Dividends paid | | | 0 | -2 803 | -2 803 |
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| NET CASH FROM FINANCING | | | -1 | -1 676 | -1 780 |
| ACTIVITIES (C) | | | | | |
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| | | | | | |
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| NET CHANGE IN CASH AND CASH | | 15 669 | -12 323 | -12 723 |
| EQUIVALENTS (A+B+C) | | | | |
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| increase (+)/decrease (-) | | | | | |
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| | | | | | |
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| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF | 11 284 | 24 007 | 24 006 |
| THE PERIOD* | | | |
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| CASH AND CASH EQUIVALENTS AT THE END OF THE | 26 953 | 11 685 | 11 284 |
| PERIOD* | | | |
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| | | | | | |
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| CASH AND CASH EQUIVALENTS IN THE | | | | |
| BALANCE | | | | |
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| SHEET AT THE END OF THE | | | | | |
| PERIOD | | | | | |
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| | | | | | |
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| Financial assets at fair | | | 2 099 | 10 315 | 2 144 |
| value through profit or | | | | | |
| loss | | | | | |
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| Cash and cash equivalents | | | 24 853 | 1 369 | 9 140 |
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| Total | | | 26 953 | 11 685 | 11 284 |
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* Cash and cash equivalents comprise trading assets as well as cash and bank
receivables, which will be due within the following three months' period.
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| CONSOLIDATED STATEMENT OF CHANGES IN | | | |
| SHAREHOLDERS' EQUITY | | | |
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| | | | | |
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| Share | Share |Other |Exchange |Retained
|
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| capital | premium |funds |ratediff.|earnings
|
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| EQUITY JAN. 1, 2008 | 8 010 | 6 498 | 125 | 36 | 18 524 |
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| Exchange differences from net | | | | | |
| investments | | | | | |
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| Taxes related to items | | | | | |
| recognized in equity or | | | | | |
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| transferred from equity | | | | | |
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| Translation differences | | | -487 | 1 118 | |
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| Net income recognized | 0 | 0 | -487 | 1 118 | 0 |
| directly in equity | | | | | |
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| Profit for the period | | | | | 952 |
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| Total income and expenses | | | | | |
| recognized | | | | | |
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| in the period | 0 | 0 | -487 | 1 118 | 952 |
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| Dividend | | | | | |
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| Equity-settled share-based | | | 22 | | |
| transactions | | | | | |
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| EQUITY MARCH 31, 2008 | 8 010 | 6 498 | -340 | 1 154 | 19 476 |
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| CONSOLIDATED STATEMENT OF | | | | | |
| CHANGES IN SHAREHOLDERS' | | | | | |
| EQUITY (continues) | | | | | |
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| | To | | Mino | | EQUITY |
| | owners | | rity | | |
| | of | | | | |
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| | the | | inte | | TOTAL |
| | Parent | | rest | | |
--------------------------------------------------------------------------------
| | company | | | | |
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| EQUITY JAN. 1, 2008 | 33 194 | | 0 | | 33 194 |
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| Exchange differences from net | 0 | | | | 0 |
| investments | | | | | |
--------------------------------------------------------------------------------
| Taxes related to items | | | | | |
| recognized in equity or | | | | | |
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| transferred from equity | 0 | | | | 0 |
--------------------------------------------------------------------------------
| Translation differences | 631 | | | | 631 |
--------------------------------------------------------------------------------
| Net income recognized | 631 | | 0 | | 631 |
| directly in equity | | | | | |
--------------------------------------------------------------------------------
| Profit for the period | 952 | | | | 952 |
--------------------------------------------------------------------------------
| Total income and expenses | | | | | |
| recognized | | | | | |
--------------------------------------------------------------------------------
| in the period | 1 583 | | 0 | | 1 583 |
--------------------------------------------------------------------------------
| Dividend | 0 | | | | 0 |
--------------------------------------------------------------------------------
| Equity-settled share-based | 22 | | | | 22 |
| transactions | | | | | |
--------------------------------------------------------------------------------
| EQUITY MARCH 31, 2008 | 34 799 | | 0 | | 34 799 |
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| CONSOLIDATED STATEMENT OF | | | | | |
| CHANGES IN SHAREHOLDERS' EQUITY | | | | | |
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| | | | | | |
--------------------------------------------------------------------------------
| | Share | Share | Other | Exchange| Retained|
| | | | | | |
--------------------------------------------------------------------------------
| |capital|premium| funds | rate | earnings|
| | | | | diff. | |
--------------------------------------------------------------------------------
| EQUITY JAN 1, 2007 | 8 010 | 6 498 | -201 | 274 | 14 726 |
--------------------------------------------------------------------------------
| Exchange differences from net | | | -25 | | |
| investments | | | | | |
--------------------------------------------------------------------------------
| Taxes related to items | | | | | |
| recognized in equity or | | | | | |
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| transferred from equity | | | 7 | | |
--------------------------------------------------------------------------------
| Translation differences | | | | 37 | |
--------------------------------------------------------------------------------
| Net income recognized directly | 0 | 0 | -18 | 37 | 0 |
| in equity | | | | | |
--------------------------------------------------------------------------------
| Profit for the period | | | | | 1 634 |
--------------------------------------------------------------------------------
| Total income and expenses | | | | | |
| recognized | | | | | |
--------------------------------------------------------------------------------
| in the period | 0 | 0 | -18 | 37 | 1 634 |
--------------------------------------------------------------------------------
| Dividend | | | | | -2 803 |
--------------------------------------------------------------------------------
| Equity-settled share-based | | | 16 | | |
| transactions | | | | | |
--------------------------------------------------------------------------------
| EQUITY MARCH 31, 2007 | 8 010 | 6 498 | -203 | 311 | 13 557 |
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--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF | | | | | |
| CHANGES IN SHAREHOLDERS' EQUITY | | | | | |
| (continues) | | | | | |
--------------------------------------------------------------------------------
| | To | | Minori| | EQUITY |
| | owners| | ty | | |
| | of | | | | |
--------------------------------------------------------------------------------
| | the | |interest| | TOTAL |
| | Parent| | | | |
| | | | | | |
--------------------------------------------------------------------------------
| |company| | | | |
| | | | | | |
--------------------------------------------------------------------------------
| EQUITY JAN. 1, 2007 |29 308 | | 0 | | 29 308 |
| | | | | | |
--------------------------------------------------------------------------------
| Exchange differences from net | -25 | | | | -25 |
| investments | | | | | |
--------------------------------------------------------------------------------
| Taxes related to items | | | | | |
| recognized in equity | | | | | |
--------------------------------------------------------------------------------
| or transferred from equity | 7 | | | | 7 |
--------------------------------------------------------------------------------
| Translation differences | 37 | | | | 37 |
--------------------------------------------------------------------------------
| Net income recognized directly | 19 | | 0 | | 19 |
| in equity | | | | | |
--------------------------------------------------------------------------------
| Profit for the period | 1 634 | | | | 1 634 |
--------------------------------------------------------------------------------
| Total income and expenses | | | | | |
| recognized | | | | | |
--------------------------------------------------------------------------------
| in the period | 1 653 | | 0 | | 1 653 |
--------------------------------------------------------------------------------
| Dividend |-2 803 | | | | -2 803 |
| | | | | | |
--------------------------------------------------------------------------------
| Equity-settled share-based | 16 | | | | 16 |
| transactions | | | | | |
--------------------------------------------------------------------------------
| EQUITY MARCH 31, 2007 |28 173 | | 0 | | 28 173 |
| | | | | | |
--------------------------------------------------------------------------------
NOTES
General information
Raute Group (‘Group') is a globally operating technology corporation, whose core
business consists of the production processes of veneer-based wood products.
Project deliveries include complete mills, production lines, and single
machines. Full-service technology services include spare part, maintenance, and
modernization services, as well as services related to developing customers'
businesses.
The 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 OMX Nordic Exchange, Helsinki,
under Industrials. Raute Corporation is domiciled in Lahti. The address of its
registered office is Rautetie 2, 15550 Nastola, and its postal address is P.O.
Box 69, 15551 NASTOLA.
A copy of the Consolidated financial statements is available online at
www.raute.com or at the head office of the Parent company, Rautetie 2, 15550
Nastola, Finland.
Raute Corporation's Board of Directors has on 28 March 2008 reviewed the Group's
Interim financial statements for January 1 - March 31, 2008, and decided to
publish Raute Corporation's Interim financial reporting for January 1 - March
31, 2008, in compliance with this release.
1. Accounting principles
Raute Corporation's Interim financial reporting has been prepared in compliance
with IAS 34.
Raute Group's Interim financial statements for January 1 - March 31, 2008,
included in the Interim financial reporting do not contain full notes and other
information presented in the financial statements. Therefore, the Interim
financial reporting should be read in conjunction with the Financial statements
published for 2007.
The figures presented in the Interim financial reporting have not been audited.
Figures in parentheses refer to the corresponding figures in the comparison
year. All the monetary figures presented in this interim report are in thousands
euros, unless otherwise stated. Due to the roundings of the figures in the
interim financial statement tables, the sums of figures may deviate from the
sum total presented in the table.
The preparation of interim financial statements according to IFRS requires
management to use estimates and assumptions that affect the assets and
liabilities on the balance sheet date, as well as the income and expenses for
the financial period.
Because the forward-looking estimates and assumptions are based on management's
best knowledge at the interim time, they comprise risks and uncertainties. The
actual results may differ from these estimates.
The following standards have taken effect during the interim period, but
according to the management's view, they do not affect the performance or the
financial condition of the Group:
- IFRIC 11, IFRS 2: Group and Treasury Share Transactions
- IFRIC 12, Service Concession Arrangements
In other respects, the Group has followed the accounting principles described in
the Financial statements for 2007.
2. Segment information
Primary reporting segment
Raute's primary reporting segment is the business segment. Continuing operations
belong to the wood products technology segment.
Secondary reporting segment
The secondary reporting segment is geographical. The geographical segment
consists of market areas accounting for over 10 percent of the Group's net
sales.
Geographical reporting segment information:
--------------------------------------------------------------------------------
| Net sales to external |1.1.-31.3.| | 1.1.-31.3.| |1.1.-31.12.| |
| clients by | | | | | | |
--------------------------------------------------------------------------------
| clients' geographical | 2008 | % | 2007 | % | 2007 | % |
| location | | | | | | |
--------------------------------------------------------------------------------
| Europe | 11 886 | 50 | 8 951 | 31 | 34 117 | 31 |
--------------------------------------------------------------------------------
| Russia | 7 429 | 31 | 5 939 | 21 | 38 314 | 35 |
--------------------------------------------------------------------------------
| North America | 3 035 | 13 | 9 301 | 32 | 24 047 | 22 |
--------------------------------------------------------------------------------
| South America | 1 258 | 5 | 3 576 | 12 | 11 485 | 10 |
--------------------------------------------------------------------------------
| Others | 302 | 1 | 1 115 | 4 | 2 836 | 3 |
--------------------------------------------------------------------------------
| TOTAL | 23 910 | 100 | 28 882 | 100 | 110 799 | 100 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Assets by | | | | | | |
| geographical location | | | | | | |
--------------------------------------------------------------------------------
| Europe | 68 914 | 91 | 48 770 | 87 | 48 822 | 89 |
--------------------------------------------------------------------------------
| Russia | 1 058 | 1 | 218 | 0 | 1 048 | 2 |
--------------------------------------------------------------------------------
| North America | 4 024 | 5 | 6 302 | 11 | 3 275 | 6 |
--------------------------------------------------------------------------------
| South America | 40 | 0 | 47 | 0 | 34 | 0 |
--------------------------------------------------------------------------------
| Others | 1 598 | 2 | 1 022 | 2 | 1 621 | 3 |
--------------------------------------------------------------------------------
| TOTAL | 75 634 | 100 | 56 358 | 100 | 54 800 | 100 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Capital expenditure | | | | | | |
| by geographical | | | | | | |
| location | | | | | | |
--------------------------------------------------------------------------------
| Europe | 553 | 65 | 269 | 76 | 1 411 | 75 |
--------------------------------------------------------------------------------
| Russia | 1 | 0 | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| North America | 3 | 0 | 21 | 6 | 74 | 4 |
--------------------------------------------------------------------------------
| South America | 5 | 1 | 0 | 0 | 4 | 0 |
--------------------------------------------------------------------------------
| Others | 290 | 34 | 63 | 18 | 380 | 20 |
--------------------------------------------------------------------------------
| TOTAL | 852 | 100 | 353 | 100 | 1 869 | 100 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 3. Proceeds from | | | | | | |
| sales | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 1.1.-31.3.| |1.1.-31.3.| |1.1.-31.12.| |
| | | | | | | |
--------------------------------------------------------------------------------
| by market area | 2008 | % | 2007 | % | 2007 | % |
--------------------------------------------------------------------------------
| Rest of Europe | 8 741 | 37 | 5 718 | 20 | 20 077 | 18 |
--------------------------------------------------------------------------------
| Russia | 7 429 | 31 | 5 939 | 21 | 38 314 | 35 |
--------------------------------------------------------------------------------
| Finland | 3 145 | 13 | 3 233 | 11 | 14 040 | 13 |
--------------------------------------------------------------------------------
| North America | 3 035 | 13 | 9 301 | 32 | 24 047 | 22 |
--------------------------------------------------------------------------------
| South America | 1 258 | 5 | 3 576 | 12 | 11 485 | 10 |
--------------------------------------------------------------------------------
| Asia | 74 | 0 | 570 | 2 | 915 | 1 |
--------------------------------------------------------------------------------
| Oceania | 142 | 1 | 76 | 0 | 979 | 1 |
--------------------------------------------------------------------------------
| Others | 86 | 0 | 469 | 2 | 942 | 1 |
--------------------------------------------------------------------------------
| TOTAL | 23 910 | 100 | 28 882 | 100 | 110 799 | 100 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 4. Long-term projects | | | 31.3. | 31.3. | 31.12. |
--------------------------------------------------------------------------------
| | | | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Net sales | | | | | |
--------------------------------------------------------------------------------
| Net sales by percentage | | | 20 315 | 25 427 | 94 905 |
| of completion | | | | | |
--------------------------------------------------------------------------------
| Other net sales | | | 3 595 | 3 455 | 15 894 |
--------------------------------------------------------------------------------
| TOTAL | | | 23 910 | 28 882 | 110 799 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Project revenues entered as income | | | | |
| from currently undelivered | | | | |
--------------------------------------------------------------------------------
| long-term projects recognized by | | 112 011 | 86 574 | 120 722 |
| percentage of completion | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Amount of long-term projects | | 61 297 | 65 019 | 53 474 |
| revenues not yet entered as income | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Specification of combined | | | | | |
| asset and liability | | | | | |
| items: | | | | | |
--------------------------------------------------------------------------------
| Accrued income corresponding to revenues by | 111 356 | 86 321 | 120 942 |
| percentage of completion | | | |
--------------------------------------------------------------------------------
| Advances received from | | | -95 477 | -69 206 | -102 |
| project customers | | | | | 601 |
--------------------------------------------------------------------------------
| Project receivables | | | 15 879 | 17 114 | 18 341 |
| included in current | | | | | |
| assets | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Advance payments received | | | 22 631 | 10 032 | 7 590 |
| in the Balance Sheet | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 5. Number of personnel, persons | 31.3. | 31.3. | 31.12. |
--------------------------------------------------------------------------------
| | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
| - effective, on average | 568 | 546 | 566 |
--------------------------------------------------------------------------------
| - in books, on average | 580 | 548 | 575 |
--------------------------------------------------------------------------------
| - in books, at the end of period | 578 | 556 | 570 |
--------------------------------------------------------------------------------
| - of which personnel working abroad | 140 | 131 | 140 |
--------------------------------------------------------------------------------
6. Income taxes
Income taxes represent the tax corresponding to the period's result, based on
the estimated full-year tax rate. The effective tax rate of the reporting period
is 28,1 percent.
--------------------------------------------------------------------------------
| 7. Research and | | | 31.3. | 31.3. | 31.12. |
| development costs | | | | | |
--------------------------------------------------------------------------------
| | | | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
| Research and development | | | 862 | 1 015 | 3 969 |
| costs for the period | | | | | |
--------------------------------------------------------------------------------
| Depreciation of | | | 92 | 92 | 367 |
| capitalized development | | | | | |
| costs | | | | | |
--------------------------------------------------------------------------------
| Recognized as assets in | | | -226 | -135 | -233 |
| balance sheet | | | | | |
--------------------------------------------------------------------------------
| Research and development costs entered as | 728 | 972 | 4 103 |
| expenses for the period | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 8. Property, plant and | | | 31.3. | 31.3. | 31.12. |
| equipment, changes | | | | | |
--------------------------------------------------------------------------------
| | | | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
| Carrying amount at Jan. | | | 40 008 | 40 411 | 40 411 |
| 1, 2008 | | | | | |
--------------------------------------------------------------------------------
| Exchange rate differences | | | -130 | 0 | 4 |
--------------------------------------------------------------------------------
| Additions | | | 587 | 318 | 1 263 |
--------------------------------------------------------------------------------
| Disposals | | | 0 | 0 | -1 558 |
--------------------------------------------------------------------------------
| Other reclassifications | | | 0 | -150 | -112 |
| between items | | | | | |
--------------------------------------------------------------------------------
| Carrying amount at March | | | 40 595 | 40 579 | 40 008 |
| 31, 2008 | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Accumulated depreciation and | | -29 014 | -27 868 | -27 868 |
| amortization at Jan. 1, 2008 | | | | |
--------------------------------------------------------------------------------
| Exchange rate differences | | | -71 | 0 | 2 |
--------------------------------------------------------------------------------
| Accumulated depreciations | | | 0 | 0 | -50 |
| on disposals | | | | | |
--------------------------------------------------------------------------------
| Depreciation for the | | | -401 | -384 | -1 574 |
| financial period | | | | | |
--------------------------------------------------------------------------------
| Impairments | | | 0 | 0 | 477 |
--------------------------------------------------------------------------------
| Accumulated depreciation and amortization at | -29 616 | -28 252 | -29 014 |
| March 31, 2008 | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Book value at Jan. 1, | | | 10 993 | 12 542 | 12 542 |
| 2008 | | | | | |
--------------------------------------------------------------------------------
| Book value at March 31, | | | 10 979 | 12 327 | 10 993 |
| 2008 | | | | | |
--------------------------------------------------------------------------------
9. Share-based payments
The effect of the share-based remunerations to the profit of Raute Group was EUR
49 thousand. At the end of the period the current value of the cash portion was
EUR 14,97 per share. The value of share-based remunerations was EUR 0.5 million
in total.
--------------------------------------------------------------------------------
| 10. Other leases and operating | | 31.3. | 31.3. | 31.12. |
| lease liabilities | | | | |
--------------------------------------------------------------------------------
| Group as lessee | | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
| Minimum rents paid on the | | | | |
| basis of other | | | | |
--------------------------------------------------------------------------------
| non-cancellable leases: | | | | |
--------------------------------------------------------------------------------
| - Within one year | | 120 | 131 | 127 |
--------------------------------------------------------------------------------
| - After the period of more than 1 and | 343 | 488 | 370 |
| less than 5 years | | | |
--------------------------------------------------------------------------------
| TOTAL | | 463 | 619 | 497 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| The Group has rented in a part of its | | | |
| office premises in use. | | | |
--------------------------------------------------------------------------------
| The rental agreements are made | | | | |
| for the time being. | | | | |
--------------------------------------------------------------------------------
| Minimum direct leasing rents | | | | |
| paid on the basis of | | | | |
--------------------------------------------------------------------------------
| non-cancellable direct leasing | | | | |
| contracts: | | | | |
--------------------------------------------------------------------------------
| - Under 1 year | | 58 | 51 | 60 |
--------------------------------------------------------------------------------
| - 1-5 years | | 46 | 56 | 60 |
--------------------------------------------------------------------------------
| TOTAL | | 104 | 107 | 120 |
--------------------------------------------------------------------------------
11. Pledged assets and contingent liabilities
Pledged assets
Debts secured by mortgages
Raute Group has on March 31, 2008 long-term bilateral credit facilities worth
EUR 15 million, which were unused during the period.
Raute Corporation has a EUR 10 million domestic commercial paper program, which
is arranged by Nordea Bank Finland plc. Within the limits of the program, the
company can issue commercial papers maturing in less than one year.
--------------------------------------------------------------------------------
| Contingent liabilities and other | 31.3. | 31.3. | 31.12. |
| liabilities | | | |
--------------------------------------------------------------------------------
| | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
| For own debt | | | |
--------------------------------------------------------------------------------
| - Mortgages on real property | 134 | 1 134 | 134 |
--------------------------------------------------------------------------------
| - Business mortgages | 10 000 | 10 000 | 10 000 |
--------------------------------------------------------------------------------
| Security for Group's liabilities | | | |
--------------------------------------------------------------------------------
| - Bank guarantees | 17 685 | 19 104 | 17 584 |
--------------------------------------------------------------------------------
| Other own liabilities | | | |
--------------------------------------------------------------------------------
| Leasing and rent liabilities | | | |
--------------------------------------------------------------------------------
| - For the current accounting period | 178 | 182 | 187 |
--------------------------------------------------------------------------------
| - For subsequent accounting periods | 389 | 544 | 430 |
--------------------------------------------------------------------------------
No loans or pledges have been given or other commitments made on behalf of the
company's management or shareholders.
--------------------------------------------------------------------------------
| 12. Currency derivatives | | 31.3. | 31.3. | 31.12. |
--------------------------------------------------------------------------------
| | | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
| Currency derivatives are used | | | | |
| for hedging purposes. | | | | |
--------------------------------------------------------------------------------
| Nominal values of forward contracts in | | | |
| foreign currency | | | |
--------------------------------------------------------------------------------
| Economic hedging | | | | |
--------------------------------------------------------------------------------
| - Related to financing | | 3 245 | 2 574 | 3 277 |
--------------------------------------------------------------------------------
| - Related to hedging of net | | 2 598 | 881 | 2 481 |
| sales | | | | |
--------------------------------------------------------------------------------
| Hedge accounting | | | | |
--------------------------------------------------------------------------------
| - Related to the hedging of | | 0 | 6 849 | 0 |
| net sales | | | | |
--------------------------------------------------------------------------------
| Fair values of forward contracts in | | | |
| foreign currency | | | |
--------------------------------------------------------------------------------
| Economic hedging | | | | |
--------------------------------------------------------------------------------
| - Related to financing | | 330 | 3 | -30 |
--------------------------------------------------------------------------------
| - Related to the hedging of | | 65 | 1 | 360 |
| net sales | | | | |
--------------------------------------------------------------------------------
| Hedge accounting | | | | |
--------------------------------------------------------------------------------
| - Related to the hedging of | | 0 | -16 | 0 |
| net sales | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GROUP KEY RATIOS | 1.1.-31.3. | 1.1.-31.3. | 1.1.-31.12.|
| | | | |
--------------------------------------------------------------------------------
| | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Return on investment (ROI), % | 19,2 | 30,1 | 29,2 |
--------------------------------------------------------------------------------
| Return on equity (ROE), % | 11,2 | 22,7 | 21,1 |
--------------------------------------------------------------------------------
| Quick ratio | 3,3 | 2,1 | 2,8 |
--------------------------------------------------------------------------------
| Gearing, % | -76,0 | -39,4 | -32,5 |
--------------------------------------------------------------------------------
| Equity ratio, % | 65,7 | 60,8 | 70,3 |
--------------------------------------------------------------------------------
| Order book, MEUR | 65 | 68 | 56 |
--------------------------------------------------------------------------------
| Order intake, MEUR | 33 | 14 | 90 |
--------------------------------------------------------------------------------
| Exported portion of net sales, | 86,8 | 88,8 | 87,3 |
| % | | | |
--------------------------------------------------------------------------------
| Change in net sales, % | -17,2 | 9,0 | 4,3 |
--------------------------------------------------------------------------------
| Gross capital expenditure, MEUR | 0,9 | 0,4 | 1,9 |
--------------------------------------------------------------------------------
| % of net sales | 3,6 | 1,2 | 1,7 |
--------------------------------------------------------------------------------
| Research and development, MEUR | 0,9 | 1,0 | 4,0 |
--------------------------------------------------------------------------------
| % of net sales | 3,6 | 3,5 | 3,6 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Earnings per share (EPS), EUR | | | |
--------------------------------------------------------------------------------
| - undiluted | 0,24 | 0,41 | 1,65 |
--------------------------------------------------------------------------------
| - diluted | 0,24 | 0,41 | 1,65 |
--------------------------------------------------------------------------------
| Equity to share, EUR | 8,69 | 7,03 | 8,29 |
--------------------------------------------------------------------------------
| Dividend per share series K | | | 1,00 |
| shares, EUR | | | |
--------------------------------------------------------------------------------
| Dividend per share series A | | | 1,00 |
| shares, EUR | | | |
--------------------------------------------------------------------------------
| Dividend per profit, % | | | 60,7 |
--------------------------------------------------------------------------------
| Effective dividend return, % | | | 7,0 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Share price at the end of the | 14,97 | 13,30 | 14,35 |
| period, EUR | | | |
--------------------------------------------------------------------------------
| Number of shares | | | |
--------------------------------------------------------------------------------
| - weighted average, 1 000 pcs | 4 005 | 4 005 | 4 005 |
--------------------------------------------------------------------------------
| - diluted, 1 000 pcs | 4 005 | 4 005 | 4 005 |
--------------------------------------------------------------------------------
The formulas used to calculate key ratios are described on page 72 of the Annual
Report 2007.
--------------------------------------------------------------------------------
| THE DEVELOPMENT OF | Q 1 | Q 4 | Q 3 | Q 2 | Rolling | Rolling|
| | | | | | | |
--------------------------------------------------------------------------------
| QUARTERLY RESULTS | 2008 | 2007 | 2007 | 2007 | 1.4.2007|1.4.2006|
| | | | | | | |
--------------------------------------------------------------------------------
| | | | | | - | - |
--------------------------------------------------------------------------------
| | | | | | | |
| | | | | | |
| | | | | |31.3.2008|31.3.2007|
| | | | | | | |
--------------------------------------------------------------------------------
| NET SALES | 23 910 | 25 683 | 26 466 | 29 769 | 105 827 | 108 585|
| | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Other operating | 27 | 386 | 17 | 19 | 450 | 212 |
| income | | | | | | |
--------------------------------------------------------------------------------
| Increase (+) or | | | | | | |
| decrease (-) in | | | | | | |
| inventories | | | | | | |
--------------------------------------------------------------------------------
| of finished goods and | 196 | -252 | 103 | -54 | -8 | -131 |
| work in progress | | | | | | |
--------------------------------------------------------------------------------
| Materials and | 11 661 | 11 910 | 14 653 | 17 439 | 55 663 | 63 564 |
| services | | | | | | |
--------------------------------------------------------------------------------
| Expenses from | 7 131 | 8 103 | 6 397 | 7 369 | 28 999 | 26 777 |
| employee benefits | | | | | | |
--------------------------------------------------------------------------------
| Depreciation, | 641 | 654 | 684 | 663 | 2 642 | 2 719 |
| amortization and | | | | | | |
| impairment charges | | | | | | |
--------------------------------------------------------------------------------
| Other operating | 3 497 | 2 709 | 2 412 | 2 427 | 11 045 | 10 332 |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Total operating | 22 931 | 23 376 | 24 146 | 27 898 | 98 350 |103 393 |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| OPERATING PROFIT | 1 202 | 2 441 | 2 440 | 1 836 | 7 919 | 5 274 |
--------------------------------------------------------------------------------
| % of net sales | 5 | 10 | 9 | 6 | 7 | 5 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Financial income | 453 | 159 | -1 | 191 | 801 | 647 |
--------------------------------------------------------------------------------
| Financial expenses | -330 | -129 | -57 | -53 | -570 | -233 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| PROFIT BEFORE TAX | 1 325 | 2 470 | 2 382 | 1 973 | 8 150 | 5 687 |
--------------------------------------------------------------------------------
| % of net sales | 6 | 10 | 9 | 7 | 8 | 5 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Income taxes | -373 | -844 | -536 | -478 | -2 231 | -1 349 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| PROFIT FOR THE PERIOD | 952 | 1 626 | 1 845 | 1 495 | 5 919 | 4 338 |
--------------------------------------------------------------------------------
| % of net sales | 4 | 6 | 7 | 5 | 6 | 4 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Breakdown | | | | | | |
--------------------------------------------------------------------------------
| Minority interest | 0 | 0 | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Share of profit that | | | | | | |
| belongs to owners | | | | | | |
--------------------------------------------------------------------------------
| of the Parent company | 952 | 1 626 | 1 845 | 1 495 | 5 919 | 4 338 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | | | | | | |
| EUR | | | | | | |
--------------------------------------------------------------------------------
| Undiluted earnings | 0,24 | 0,41 | 0,46 | 0,37 | | |
| per share | | | | | | |
--------------------------------------------------------------------------------
| Diluted earnings per | 0,24 | 0,41 | 0,46 | 0,37 | | |
| share | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Shares, 1 000 pcs | | | | | | |
--------------------------------------------------------------------------------
| Adjusted average | 4 005 | 4 005 | 4 005 | 4 005 | | |
| number of shares | | | | | | |
--------------------------------------------------------------------------------
| Adjusted average | 4 005 | 4 005 | 4 005 | 4 005 | | |
| number of shares, | | | | | | |
| diluted | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 20 LARGEST SHAREHOLDERS | Number of | Number of | |
| AT 31 MARCH 2008 | | | |
--------------------------------------------------------------------------------
| | series K | series A | |
--------------------------------------------------------------------------------
| | shares | shares | Total |
--------------------------------------------------------------------------------
| | (20 votes | (1 vote | number |
--------------------------------------------------------------------------------
| | per share) | per share) | of shares |
--------------------------------------------------------------------------------
| 1. Sundholm Göran | | 525 000 | 525 000 |
--------------------------------------------------------------------------------
| 2. Hietala Pekka Tapani | | 181 900 | 181 900 |
--------------------------------------------------------------------------------
| 3. Suominen Jussi Matias | 48 000 | 74 759 | 122 759 |
--------------------------------------------------------------------------------
| 4. Suominen Tiina | 48 000 | 72 759 | 120 759 |
| Sini-Maria | | | |
--------------------------------------------------------------------------------
| 5. Mustakallio Kari | 60 480 | 60 009 | 120 489 |
| Pauli | | | |
--------------------------------------------------------------------------------
| 6. Kirmo Kaisa Marketta | 50 280 | 64 052 | 114 332 |
--------------------------------------------------------------------------------
| 7. Suominen Pekka Matias | 48 000 | 64 159 | 112 159 |
--------------------------------------------------------------------------------
| 8. Siivonen Osku Pekka | 50 640 | 53 539 | 104 179 |
--------------------------------------------------------------------------------
| 9. Keskiaho Kaija Leena | 33 600 | 51 116 | 84 716 |
--------------------------------------------------------------------------------
| 10. Särkijärvi Riitta | 60 480 | 22 009 | 82 489 |
--------------------------------------------------------------------------------
| 11. Mustakallio Mika | 39 750 | 42 670 | 82 420 |
--------------------------------------------------------------------------------
| 12. Mustakallio Risto | 42 240 | 35 862 | 78 102 |
--------------------------------------------------------------------------------
| 13. Mustakallio Ulla | 47 240 | 30 862 | 78 102 |
| Sinikka | | | |
--------------------------------------------------------------------------------
| 14. Sr Arvo Finland | | 63 042 | 63 042 |
| Value | | | |
--------------------------------------------------------------------------------
| 15. Mustakallio Marja | 42 240 | 20 662 | 62 902 |
| Helena | | | |
--------------------------------------------------------------------------------
| 16. Mustakallio Kai | 47 420 | 11 200 | 58 620 |
| Henrik | | | |
--------------------------------------------------------------------------------
| 17. Kirmo Lasse Antti | 30 000 | 26 200 | 56 200 |
--------------------------------------------------------------------------------
| 18. Särkijärvi Timo Juha | 12 000 | 43 256 | 55 256 |
--------------------------------------------------------------------------------
| 19. Särkijärvi-Martinez | 12 000 | 43 256 | 55 256 |
| Anu Riitta | | | |
--------------------------------------------------------------------------------
| 20. Suominen Jukka | 24 960 | 27 964 | 52 924 |
| Matias | | | |
--------------------------------------------------------------------------------
| TOTAL | 697 330 | 1 514 276 | 2 211 606 |
--------------------------------------------------------------------------------
| Share of total amount of | 70,4 | 50,2 | 55,2 |
| shares, % | | | |
--------------------------------------------------------------------------------
| Share of total voting | 70,4 | 50,2 | 67,7 |
| rights, % | | | |
--------------------------------------------------------------------------------
| Administratively | | 80 860 | 80 860 |
| registered | | | |
--------------------------------------------------------------------------------
| OTHER SHAREHOLDERS | 293 831 | 1 418 461 | 1 712 292 |
--------------------------------------------------------------------------------
| TOTAL | 991 161 | 3 013 597 | 4 004 758 |
--------------------------------------------------------------------------------
| MANAGEMENT'S | 98 990 | 89 788 | 188 778 |
| SHAREHOLDING | | | |
--------------------------------------------------------------------------------
| Share of total amount of | 10,0 | 3,0 | 4,7 |
| shares, % | | | |
--------------------------------------------------------------------------------
| Share of total voting | 10,0 | 3,0 | 9,1 |
| rights, % | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHARE INFORMATION | | | | 31.3. | 31.3. | 31.12. |
--------------------------------------------------------------------------------
| | | | | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
| Number of shares | | | | | | |
--------------------------------------------------------------------------------
| - Series K shares, | | | | 991 161 | 991 161 |991 161 |
| ordinary shares (20 | | | | | | |
| votes/share) | | | | | | |
--------------------------------------------------------------------------------
| - Series A shares, (1 | | | | 3 013 597|3 013 597|3 013 597|
| vote/share) | | | | | | |
--------------------------------------------------------------------------------
| Number of shares | | | | 4 004 758|4 004 758| 4 004 758|
| total | | | | | | |
--------------------------------------------------------------------------------
| Trading of series A | | | | | | |
| shares | | | | | | |
--------------------------------------------------------------------------------
| Trading of shares, | | | | 102 557 | 171 632 |981 095 |
| pcs | | | | | | |
--------------------------------------------------------------------------------
| Trading of shares, | | | | 1,4 | 2,3 | 13,7 |
| MEUR | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Exchange rate of | | | | | | |
| series A shares | | | | | | |
--------------------------------------------------------------------------------
| At the end of report | | | | 14,97 | 13,30 | 14,35 |
| period, EUR | | | | | | |
--------------------------------------------------------------------------------
| Highest price during | | | | 14,98 | 14,33 | 15,45 |
| the report period, | | | | | | |
| EUR | | | | | | |
--------------------------------------------------------------------------------
| Lowest price during | | | | 12,80 | 12,40 | 12,40 |
| the report period, | | | | | | |
| EUR | | | | | | |
--------------------------------------------------------------------------------
| Average price during | | | | 14,06 | 13,36 | 13,85 |
| the report period, | | | | | | |
| EUR | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Market value of | | | | | | |
| capital stock | | | | | | |
--------------------------------------------------------------------------------
| Series K shares valued at the value of | | | |
| series A shares at the end of reporting | | | |
| period. | | | |
--------------------------------------------------------------------------------
| - Series K shares, | | | | 14,8 | 13,2 | 14,2 |
| MEUR | | | | | | |
--------------------------------------------------------------------------------
| - Series A shares, | | | | 45,1 | 40,1 | 43,2 |
| MEUR | | | | | | |
--------------------------------------------------------------------------------
| Total, MEUR | | | | 60,0 | 53,3 | 57,5 |
--------------------------------------------------------------------------------
RAUTE CORPORATION
Board of Directors
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
RAUTE IN BRIEF:
Raute is a technology company serving the wood products industry worldwide. Its
most important customers are the plywood and LVL industries. The company is one
of the world's leading suppliers of mill-scale projects to these customer
industries. The total service concept also includes technology services, with
which Raute supports its customers throughout the entire life cycle of their
investments. Raute's head office and main production plant are in Nastola,
Finland. Its other production plants are in the Vancouver area of Canada, in the
Shanghai area of China, and in Jyväskylä and Kajaani, Finland. Net sales in 2007
were EUR 111 million and the number of personnel 570. More information on the
company can be found at www.raute.com.
DISTRIBUTION:
OMX Nordic Exchange, Helsinki, main media, www.raute.com
