RAUTE CORPORATION - INTERIM REPORT JANUARY 1 - MARCH 31, 2011
RAUTE CORPORATION INTERIM REPORT 4 MAY 2011 AT 9:00 A.M.
RAUTE CORPORATION - INTERIM REPORT JANUARY 1 - MARCH 31, 2011
- The Group’s net sales, EUR 14.6 million (MEUR 10.4), increased 40% on the comparison year.
- Operating loss was EUR -1.4 million (MEUR -1.4). Result before taxes was EUR -1.6 million (MEUR -1.4).
- Earnings per share (undiluted) were EUR -0.32 (EUR -0.24).
- Order intake was EUR 29 million (MEUR 25) and the order book at the end of the reporting period increased to EUR 48 million (MEUR 37).
- The outlook for financial performance remained unchanged. Net sales for 2011 will increase from the previous year, and the operating result is expected to be positive.
TAPANI KIISKI, PRESIDENT AND CEO:
NEW YEAR – NEW CHALLENGES
We started the year with a strengthened order book, and during the first quarter the order intake remained at a good level. Our order book, at EUR 48 million, reached its highest level since the second quarter of 2008. A particular highlight was the high number of orders received from Russia. It appears that our efforts in the Russian market are starting to produce results. We received twice as many modernization orders as last year, which strengthens our belief that there will be a positive turnaround in the market situation.
Our net sales increased 40 percent from the previous year, but our profit development failed to meet our expectations. The operating profit was weighed down by additional costs related to certain projects which were in the delivery phase. Keeping costs in check as the economic situation improves will be a key challenge for us in the near future.
Thanks to the current market situation and order book level, we were in a position to put an end to the adaptation measures that had been started. Now our entire organization is working and our own production capacity is being normally used. Currently, our order book largely consists of smaller orders, which puts a greater strain on our critical resources than larger projects in relation to the net sales generated.
Among the measures we have carried out to cascade our strategy, I would like to mention our new product, the RautePro TwinPeel peeling station that we introduced at the WoodMac trade show in Shanghai in the beginning of March. This entirely new veneer production concept targeted at China and other emerging markets attracted positive attention during the fair. I believe that, with this novelty, we will soon be able to tap into the Chinese market for plywood machinery.
Despite the challenges of the early part of the year, I am confident about the near future. Our net sales will increase from the previous year and our operating result will be positive.
RAUTE CORPORATION – INTERIM REPORT JANUARY 1 – MARCH 31, 2011
BUSINESS ENVIRONMENT
Market situation in customer industries
Raute’s customers in the veneer, plywood and LVL (Laminated Veneer Lumber) industries are engaged in the manufacturing of wood products used in investment commodities and thus highly affected by fluctuations in the fields of construction, housing-related consumption, international trade, and transportation.
During the reporting period, the market situation in Raute’s customer industries continued to gradually improve. Most of the plywood and LVL manufacturers already operate at normal utilization rates. Some of the most successful companies have even made new production records. Only in North America, where the housing market and construction are still plagued by a recession, market demand for wood products remains very low.
Demand for wood products technology and technology services
During the reporting period, demand for wood products technology and technology services was at a normal level, considering the market situation in the customer industries. Demand primarily concerned smaller projects and modernizations in particular.
Several larger projects involving both individual production lines and complete mills have been under lengthy negotiation in many market areas. As customers are becoming more confident about the sustained improvement in the market situation, they will be more willing to make decisions to go ahead with these projects.
ORDER INTAKE AND ORDER BOOK
Raute’s business consists of providing project deliveries and technology services to the wood products industry. Project deliveries encompass complete mills, production lines, and individual machines and equipment. Technology services include maintenance, spare parts services, modernizations, consulting, training, and reconditioned machinery.
The order intake during the first quarter, EUR 29 million (MEUR 25), was at a good level, considering the market situation. 61 percent of orders received came from Russia (12%), 26 percent from Europe (2%), 7 percent from South America (3%), 5 percent from North America (16%) and 1 percent from the Asia-Pacific area (67%). The low order intake during the reporting period from Asia and South America can be explained by the timing of the projects.
The most significant new order was received in January, concerning the delivery of plywood mill machinery worth more than EUR 12 million to Russia by the end of 2011. The order includes, among other things, two peeling lines based on Raute’s latest technology and two drying lines. Other significant new orders were peeling and drying lines to Lithuania and an automatic panel puttying line belonging to the RauteSmart product family to Chile.
Technology services accounted for EUR 7 million (MEUR 3) of the order intake.
The order book grew during the reporting period by EUR 15 million, amounting to EUR 48 million at the end of the period (MEUR 37).
COMPETITIVE POSITION
Raute’s competitive position is good. Raute’s solutions help customers in securing their delivery and service capabilities. In such investments, the supplier’s global expertise and extensive and wide-ranging technology offering play a key role. The competitive edge provided by Raute plays an important role when customers select their cooperation partners. Raute’s strong financial position also enhances its credibility and improves its competitive position as an executor of long-term investment projects.
NET SALES
Net sales for the reporting period totaled EUR 14.6 million (MEUR 10.4), up 40 percent on the first quarter of 2010. The increase in net sales resulted from the improved outlook for the customer industries and primarily took place at the end of the period.
Russia’s share of total net sales during the reporting period was 20 percent (45%), Asia-Pacific’s 28 percent (7%), North America’s 13 percent (20%), Europe’s 33 percent (21%), and South America’s 6 percent (7%).
Net sales for technology services increased 55 percent, accounting for 44 percent (40%) of total net sales.
RESULT AND PROFITABILITY
Operating loss was EUR -1.4 million (MEUR -1.4) and accounted for -10 percent (-13%) of net sales.
The first-quarter result was negative due to low net sales and additional costs arising from certain projects which were in the installation phase. The two significant new orders received in December and in January could be observed as an increase in net sales in March. March accounted for almost half of the net sales generated during the reporting period.
The result before taxes for the reporting period was EUR 1.6 million negative (MEUR 1.4 negative) and the result EUR 1.3 million negative (MEUR 1.0 negative). Earnings per share (undiluted) were EUR -0.32 (EUR -0.24).
CASH FLOW AND BALANCE SHEET
The Group’s financial position is good. At the end of the reporting period, gearing was -47 percent (-54%) and equity ratio 52 percent (44%). Other fluctuations in balance sheet items and the key figures based on them are the result of differences in the timing of customer payments and the cost accumulation from project deliveries, which is typical of project business.
The Group’s cash and cash equivalents, including financial assets recognized at fair value through profit or loss, amounted to EUR 23.0 million (MEUR 30.4) at the end of the reporting period. Operating cash flow was EUR 1.4 million positive (MEUR +2.9). Cash flow from investment activities was EUR 0.2 million negative (MEUR -0.5). Cash flow from financing activities was EUR 2.1 million negative (MEUR -0.1).
Interest-bearing liabilities amounted to EUR 12.2 million (MEUR 18.4) at the end of the reporting period.
During the reporting period, the company rearranged the financing of its liabilities by repaying EUR 8.0 million of its TyEL loan and by taking out a new bank loan of SEK 52.9 million. The new loan is hedged against currency and interest rate risks with an interest rate and currency swap agreement. The loan capital in the amount of EUR 6 million will be repaid in equal installments of EUR 1 million every six months, starting in May 2012 and ending in November 2014. The TyEL loan with a fixed interest rate amounted to EUR 6.0 million (MEUR 18.0) 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. The company also has unused bilateral credit regulation agreements worth EUR 10 million with two different Nordic banks.
EVENTS DURING THE REPORTING PERIOD
In January, significant orders worth more than EUR 12 million were received for plywood mill machinery to be delivered to Russia. The machines included in the deal, two peeling lines based on Raute’s latest technology and two drying lines, among other things, will be delivered to Russia by the end of 2011.
At a trade show organized in March in Shanghai, Raute introduced the RautePro TwinPeel peeling station based on a new concept. With this novelty, the company seeks to tap into the Chinese plywood machinery market.
As a result of the bankruptcy of a customer during the reporting period, Raute suffered a loss in the amount of EUR 0.5 million, which will have no impact on the profit and balance sheet.
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 the continuous research and development of plywood and LVL manufacturing technology, in particular, and the supporting automation and instrumentation applications, such as machine vision. Research and development costs in the reporting period totaled EUR 0.4 million (MEUR 0.3) and accounted for 2.7 percent (3.1%) of net sales.
Investments totaled EUR 0.2 million (MEUR 0.5) during the reporting period and consisted of replacement investments connected to information systems.
PERSONNEL
The Group’s personnel at the end of the reporting period numbered 476 (506). Group companies outside Finland accounted for 27 percent (25%) of employees.
Converted to full-time employees (“effective headcount”), the average number of employees was 452 (386) during the reporting period. The temporary adaptation measures targeted at personnel were interrupted during the reporting period as a result of an improved order book and workload situation.
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 euro. Series K and A shares grant equal rights to dividends and company assets.
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 has not previously held series K shares, the new owner shall report this to the Board of Directors in writing and without delay. The other shareholders of the K series have the right to redeem the share under the terms described 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 40.6 million (MEUR 31.9), with series K shares valued at the closing price of series A shares on March 31, 2011, which was EUR 10.15 (EUR 7.97).
SHAREHOLDERS
The number of shareholders totaled 1,787 at the beginning of the year and 1,776 at the end of the reporting period. Series K shares are held by 52 private individuals (46). Management held 7.2 percent (4.9%) of the company shares and 13.3 percent (9.1%) of the votes. Nominee-registered shares accounted for 2.1 percent (2.1%) of shares.
No flagging notifications were given to the company during the report period.
CORPORATE GOVERNANCE
Raute Corporation complies with the Finnish Corporate Governance Code 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 from outside the Board of Directors is elected to the Committee, 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, when 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. An outline of Raute Corporations corporate governance principles is presented on the company’s website at www.raute.com.
Raute Corporation’s Corporate Governance Statement 2010 has been drawn up separately from the financial statements and is published on the company’s website.
EVENTS AFTER THE REPORTING PERIOD
Annual General Meeting 2011
Raute Corporation’s Annual General Meeting was held on April 13, 2011. The Annual General Meeting adopted the financial statements for 2010, granted discharge from liability to those accountable and decided to distribute a dividend of EUR 0.30 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 2012. Mr. Erkki Pehu-Lehtonen was elected Chairman of the Board, Ms. Sinikka Mustakallio Vice-Chair and Mr. Risto Hautamäki, Mr. Ilpo Helander, Mr. Mika Mustakallio and Mr. Pekka Suominen as 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 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 the company’s distributable assets and a directed 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 13, 2011.
Distribution of dividend for the financial year 2010
The Annual General Meeting held on April 13, 2011 decided to distribute a dividend of EUR 0.30 per share for the financial year 2010. The total amount of dividends is EUR 1.2 million, series A shares accounting for EUR 904,079.10 (EUR 0) and series K shares for EUR 297,348.30 (EUR 0). The dividend payment date was April 27, 2011.
Board of Directors and Board Committees
The Board of Directors elected by Raute Corporation’s Annual General Meeting on April 13, 2011 held an organizing meeting.
Based on the evaluation of independence, Chairman Erkki Pehu-Lehtonen and members Risto Hautamäki, Ilpo Helander, Mika Mustakallio and Pekka Suominen are independent of the company. Vice-Chair Sinikka Mustakallio, who chaired Raute’s Supervisory Board from 1996 to 1998 and has acted as a member of the Board since 1998, is dependent on the company. The Chairman of the Board (Erkki Pehu-Lehtonen) and two Board members (Ilpo Helander and 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 Erkki Pehu-Lehtonen and its members are Sinikka Mustakallio and Ville Korhonen, who has been elected by the major shareholders from among themselves. The Working Committee is chaired by Erkki Pehu-Lehtonen and its members are Sinikka Mustakallio and 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 its development. During the reporting period, there have been no essential changes in the business risks described in the 2010 Board of Directors’ report and financial statements. The most significant risks for Raute in the near term are related to the development of net sales and profitability.
OUTLOOK FOR 2011
Raute’s business operations are characterized by the sensitivity of investment demand to fluctuations in the global economy and the financing markets.
The uncertainty related to the development of the world economy and financial markets still continues despite favorable development in several markets. The market situation for Raute’s customer industries is expected to remain somewhat uncertain. Demand for wood products has not yet permanently recovered to the pre-recession level.
Demand for investments and services in the wood products industry is not expected to reach its pre-recession level on a permanent basis in the near future. However, upgrade investments in the plywood industry to ensure quality and maintain market shares will continue to increase. Production line and mill-scale investment projects are being planned in several market areas. Their implementation and timing will depend on the continued favorable development of the market situation for wood products and on arranging financing for customer projects in some market areas.
Thanks to its strong financial and market position and the development measures carried out, Raute’s ability to respond to growing demand once the markets recover will be good. The implemented adaptation measures have led to a lighter cost structure and business is more profitable than before even in a difficult market situation.
Raute’s profit outlook for 2011 remained unchanged. As a result of a stronger order book and projects under negotiation, net sales for 2011 will increase from the previous year. The operating result is expected to be positive.
TABLES SECTION OF THE INTERIM REPORT
| The figures for the financial year 2010 presented in the figures section of the interim financial report have been audited. | ||||||
| The interim figures presented in the interim financial report have not been audited. | ||||||
| CONSOLIDATED STATEMENT OF | Note | 1.1.-31.3. | 1.1.-31.3. | 1.1.–31.3. | 1.1.- | 1.1.-. |
| COMPREHENSIVE INCOME (EUR 1 000) | 2011 | 2010 | 2011 | 31.12. | 31.12. | |
| 2010 | 2010 | |||||
| NET SALES | 3, 4, 5 | 14 627 | 10 435 | 14 627 | 10 435 | 62 867 |
| Other operating income | 32 | 18 | 32 | 18 | 4 580 | |
| Change in inventories of finished | ||||||
| goods and work in progress | 95 | -332 | 95 | -332 | 351 | |
| Materials and services | -7 067 | -3 671 | -7 067 | -3 671 | -32 679 | |
| Expenses from employee benefits | 15 | -6 047 | -5 387 | -6 047 | -5 387 | -23 467 |
| Depreciation and amortization | -542 | -637 | -542 | -637 | -2 250 | |
| Other operating expenses | -2 540 | -1 817 | -2 540 | -1 817 | -8 091 | |
| Total operating expenses | -16 196 | -11 512 | -16 196 | -11 512 | -66 487 | |
| OPERATING PROFIT | -1 442 | -1 391 | -1 442 | -1 391 | 1 311 | |
| % of net sales | -10 | -13 | -10 | -13 | 2 | |
| Financial income | 211 | 376 | 211 | 376 | 728 | |
| Financial expenses | -318 | -344 | -318 | -344 | -917 | |
| PROFIT (LOSS) BEFORE TAX | -1 550 | -1 359 | -1 550 | -1 359 | 1 122 | |
| % of net sales | -11 | -13 | -11 | -13 | 2 | |
| Income taxes | 7 | 285 | 409 | 285 | 409 | 36 |
| PROFIT (LOSS) FOR THE PERIOD | -1 265 | -950 | -1 265 | -950 | 1 158 | |
| % of net sales | -9 | -9 | -9 | -9 | 2 | |
| Other comprehensive income items: | ||||||
| Exchange differences on translating foreign operations | -15 | -11 | -15 | -11 | -20 | |
| Cash flow hedging | - | -8 | - | -8 | -19 | |
| Income tax related to cash flow hedges | - | 2 | - | 2 | 5 | |
| Comprehensive income items for | ||||||
| the period, net of tax | -15 | -17 | -15 | -17 | -34 | |
| COMPREHENSIVE PROFIT (LOSS) FOR THE PERIOD | -1 280 | -967 | -1 280 | -967 | 1 124 | |
| Profit (loss) for the period attributable to | ||||||
| Equity holders of the Parent company | -1 265 | -950 | -1 265 | -950 | 1 158 | |
| Comprehensive profit (loss) for the period | ||||||
| attributable to | ||||||
| Equity holders of the Parent company | -1 280 | -967 | -1 280 | -967 | 1 124 | |
| Earnings per share for profit (loss) attributable | ||||||
| to Equity holders of the Parent company, EUR | ||||||
| Undiluted earnings per share | -0,32 | -0,24 | -0,32 | -0,24 | 0,29 | |
| Diluted earnings per share | -0,32 | -0,24 | -0,32 | -0,24 | 0,29 | |
| 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 | 4 014 | 4 005 | 4 014 | 4 005 | 4 005 | |
| CONSOLIDATED BALANCE SHEET | Note | 31.3. | 31.3. | 31.12. | ||
| (EUR 1 000) | 2011 | 2010 | 2010 | |||
| ASSETS | ||||||
| Non-current assets | ||||||
| Intangible assets | 9 | 1 188 | 1 670 | 1 341 | ||
| Property, plant and equipment | 9 | 8 657 | 8 845 | 8 913 | ||
| Other financial assets | 497 | 487 | 497 | |||
| Receivables | 729 | 1 000 | 0 | |||
| Deferred tax assets | 1 801 | 2 132 | 1 849 | |||
| Total | 12 871 | 14 133 | 12 599 | |||
| Current assets | ||||||
| Inventories | 5 238 | 4 771 | 4 574 | |||
| Accounts receivables and other receivables | 5 | 13 602 | 11 525 | 11 770 | ||
| Cash and cash equivalents | 23 030 | 30 436 | 24 090 | |||
| Total | 41 870 | 46 733 | 40 435 | |||
| Non-current assets classified as held for sale | - | 1 557 | - | |||
| Total | - | 1 557 | - | |||
| TOTAL ASSETS | 54 742 | 62 423 | 53 034 | |||
| SHAREHOLDERS' EQUITY AND LIABILITIES | ||||||
| Equity attributable to Equity holders | ||||||
| of the Parent company | ||||||
| Share capital | 8 010 | 8 010 | 8 010 | |||
| Share premium | 6 498 | 6 498 | 6 498 | |||
| Other reserves | 15 | 55 | 288 | 36 | ||
| Exchange differences | 0 | 44 | 35 | |||
| Retained earnings | 9 647 | 8 196 | 8 490 | |||
| Profit (loss) for the period | -1 265 | -950 | 1 158 | |||
| Share of shareholders' equity that belongs | ||||||
| to the owners of the Parent company | 22 945 | 22 086 | 24 227 | |||
| Total shareholders' equity | 22 945 | 22 086 | 24 227 | |||
| Non-current liabilities | ||||||
| Provisions | 22 | 118 | 57 | |||
| Deferred tax liabilities | 0 | 266 | 337 | |||
| Non-current interest-bearing liabilities | 11 | 9 923 | 14 223 | 10 000 | ||
| Total | 9 945 | 14 608 | 10 394 | |||
| Current liabilities | ||||||
| Provisions | 616 | 1 046 | 612 | |||
| Pension obligations | 93 | 137 | 91 | |||
| Current interest-bearing liabilities | 11 | 2 315 | 4 215 | 4 439 | ||
| Advance payments received | 5 | 10 985 | 12 296 | 5 243 | ||
| Trade and other payables | 7 842 | 8 035 | 8 028 | |||
| Total | 21 851 | 25 729 | 18 413 | |||
| Total liabilities | 31 796 | 40 337 | 28 807 | |||
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 54 742 | 62 423 | 53 034 | |||
| CONSOLIDATED STATEMENT OF CASH FLOWS | 1.1.–31.3. | 1.1.–31.3. | 1.1.–31.12. | |||
| (EUR 1 000) | 2011 | 2010 | 2010 | |||
| CASH FLOW FROM OPERATING ACTIVITIES | ||||||
| Proceeds from sales | 19 101 | 14 438 | 57 338 | |||
| Proceeds from other operating income | 30 | 18 | 121 | |||
| Payments of operating expenses | -17 749 | -11 496 | -63 416 | |||
| Cash flow before financial items and taxes | 1 382 | 2 960 | -5 958 | |||
| Interests and other operating financial expenses paid | -87 | -153 | -650 | |||
| Interests and other income received | 111 | 10 | 394 | |||
| Dividends received | 22 | 82 | 118 | |||
| Income taxes paid | 0 | 14 | -18 | |||
| NET CASH FLOW FROM OPERATING ACTIVITIES (A) | 1 428 | 2 912 | -6 114 | |||
| CASH FLOW FROM INVESTING ACTIVITIES | ||||||
| Capital expenditure in tangible and intangible assets | -225 | -465 | -2 067 | |||
| Purchases of assets-for-sale as investments | - | -1 | -11 | |||
| Proceeds from sale of tangible and intangible assets | 20 | 0 | 6 448 | |||
| NET CASH FLOW FROM INVESTING ACTIVITIES (B) | -205 | -466 | 4 370 | |||
| CASH FLOW FROM FINANCING ACTIVITIES | ||||||
| Decrease of non-current and current receivables | - | - | 2 000 | |||
| Repayments of current borrowings | -115 | - | -228 | |||
| Increase of non-current borrowings | 6 000 | - | - | |||
| Repayments of non-current borrowings | -8 000 | -100 | -4 088 | |||
| NET CASH FLOW FROM FINANCING ACTIVITIES (C) | -2 116 | -99 | -2 316 | |||
| NET CHANGE IN CASH AND CASH EQUIVALENTS (A+B+C) | -893 | 2 348 | -4 060 | |||
| increase (+)/decrease (-) | ||||||
| CASH AND CASH EQUIVALENTS AT THE BEGINNING | ||||||
| OF THE PERIOD* | 24 090 | 27 900 | 27 900 | |||
| EFFECTS OF EXCHANGE RATE CHANGES ON CASH | -167 | 189 | 251 | |||
| CASH AND CASH EQUIVALENTS AT THE END | ||||||
| OF THE PERIOD* | 23 030 | 30 436 | 24 090 | |||
| CASH AND CASH EQUIVALENTS IN THE BALANCE | ||||||
| SHEET AT THE END OF THE PERIOD | ||||||
| Cash and cash equivalents | 23 030 | 30 436 | 24 090 | |||
| TOTAL | 23 030 | 30 436 | 24 090 | |||
| *Cash and cash equivalents comprise trading assets 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 | Share | Other | Exchange | Retained | ||
| (EUR 1 000) | capital | premium | reserves | rate diff. | earnings | |
| EQUITY Jan. 1, 2011 | 8 010 | 6 498 | 36 | 35 | 9 648 | |
| Profit (loss) for the period | - | - | - | - | -1 265 | |
| Comprehensive profit (loss) for the period: | ||||||
| Exchange differences on translating | ||||||
| foreign operations | - | - | - | -35 | - | |
| Cash flow hedging, net of tax | - | - | - | - | - | |
| Total comprehensive profit (loss) | ||||||
| for the period | 0 | 0 | 0 | -35 | -1 265 | |
| Equity-settled share-based transactions | - | - | 19 | - | - | |
| EQUITY March 31, 2011 | 8 010 | 6 498 | 55 | 0 | 8 383 | |
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (continue) | ||||||
| To the owners | EQUITY | |||||
| of the Parent | TOTAL | |||||
| (EUR 1 000) | company | |||||
| EQUITY Jan. 1, 2011 | 24 227 | 24 227 | ||||
| Profit (loss) for the period | -1 265 | -1 265 | ||||
| Comprehensive profit (loss) for the period: | ||||||
| Exchange differences on translating | ||||||
| foreign operations | -35 | -35 | ||||
| Cash flow hedging, net of tax | - | - | ||||
| Total comprehensive profit (loss) | ||||||
| for the period | -1 301 | -1 301 | ||||
| Equity-settled share-based transactions | 19 | 19 | ||||
| EQUITY March 31, 2011 | 22 945 | 22 945 | ||||
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY | ||||||
| Share | Share | Other | Exchange | Retained | ||
| (EUR 1 000) | capital | premium | funds | rate diff. | earnings | |
| EQUITY Jan. 1, 2010 | 8 010 | 6 498 | 294 | 55 | 8 196 | |
| Profit (loss) for the period | - | - | - | - | -950 | |
| Comprehensive profit (loss) for the period: | ||||||
| Exchange differences on translating | ||||||
| foreign operations | - | - | - | -11 | - | |
| Cash flow hedging, net of tax | - | - | -6 | - | - | |
| Total comprehensive profit (loss) | ||||||
| for the period | 0 | 0 | -6 | -11 | -950 | |
| Equity-settled share-based transactions | - | - | - | - | - | |
| Reclassifications between items | ||||||
| Dividend paid | ||||||
| EQUITY March 31, 2010 | 8 010 | 6 498 | 288 | 44 | 7 246 | |
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (continue) | ||||||
| To the owners | EQUITY | |||||
| of the Parent | TOTAL | |||||
| (EUR 1 000) | company | |||||
| EQUITY Jan. 1, 2010 | 23 054 | 23 054 | ||||
| Profit (loss) for the period | -950 | -950 | ||||
| Comprehensive profit (loss) for the period: | ||||||
| Exchange differences on translating | ||||||
| foreign operations | -11 | -11 | ||||
| Cash flow hedging, net of tax | -6 | -6 | ||||
| Total comprehensive profit (loss) | ||||||
| for the period | -967 | -967 | ||||
| Equity-settled share-based transactions | - | - | ||||
| EQUITY March 31, 2010 | 22 086 | 22 086 | ||||
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. General information
Raute Group is a globally operating technology corporation which manufactures complete mills, production lines and single machines for the veneer, plywood and LVL industries. Raute’s technology offering covers the customers’ entire production process, ranging from raw material processing to the finishing and packaging of end products. Additionally, Raute’s full service concept includes technology services, such as maintenance, spare parts services, equipment modernization, consulting, training and sales of reconditioned machinery. The Group has production units in Finland, Canada and China. The company’s sales network has a global reach.
Raute Group’s Parent company is a Finnish public limited liability company, Raute Corporation, 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, Finland. The address of its registered office is Rautetie 2, FI-15550 Nastola, Finland, and its postal address is P.O. Box 69, FI-15551 Nastola, Finland.
The Consolidated financial statements are 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 May 4, 2011 reviewed the Group's Interim financial report for January 1 - March 31, 2011, and approved the Interim financial report for January 1 – March 31, 2011 to be published in compliance with this release.
2. Accounting principles
Raute Corporation’s Interim financial report January 1 - March 31, 2011 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. Therefore, the Interim financial report should be read in conjunction with the Financial statements published for 2010.
Raute Corporation’s Interim financial report for January 1 – March 31, 2011 has been prepared applying the accounting principles described in the Annual financial statements for 2010 and the following new and amended standards and interpretations which have taken effect on January 1, 2011 or later:
- IAS 24 Related Party Disclosures, revised
- IAS 32 Classification of Rights Issues, amendment
- IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments
- IFRIC 14 Prepayments of a Minimum Funding Requirement, amendment.
The new standards, amendments and interpretations do not have any significant impact on the Group's Interim financial report.
IASB published in July 2010 improvements to seven standards or interpretations as part of their Annual Improvements. The Group will apply the amendments after EU's approval during the financial year 2011.
All the monetary figures presented in the Interim financial report are in thousand euros, unless otherwise stated. Due to the rounding of the figures in the Interim 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 financial statements according to international financial reporting standards requires management to use estimates and assumptions. In addition, the management must exercise its judgement in selecting and applying the accounting policies of the Interim financial report. These estimates and assumptions affect the assets and liabilities in the Group's balance sheet, the disclosure of commitments and possible assets in the consolidated financial statements, and income and expenses for the period. Actual results may differ from the 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. | ||||||
| 31.3. | 31.3. | 31.12. | ||||
| Wood products technology | 2011 | 2010 | 2010 | |||
| Net sales | 14 627 | 10 435 | 62 867 | |||
| Operating profit | -1 442 | -1 391 | 1 311 | |||
| Assets | 54 742 | 62 423 | 53 034 | |||
| Liabilities | 31 796 | 40 337 | 28 807 | |||
| Capital expenditure | 226 | 508 | 2 224 | |||
| Assets of the wood products technology | 31.3. | 31.3. | 31.12. | |||
| segment by geographical location | 2011 | % | 2010 | % | 2010 | % |
| Finland | 45 729 | 84 | 57 144 | 92 | 44 006 | 83 |
| China | 4 018 | 7 | 881 | 1 | 4 129 | 8 |
| North America | 3 357 | 6 | 3 246 | 5 | 3 730 | 7 |
| Russia | 1 319 | 2 | 842 | 1 | 880 | 2 |
| South America | 143 | 0 | 128 | 0 | 160 | 0 |
| Others | 176 | 0 | 182 | 0 | 129 | 0 |
| TOTAL | 54 742 | 100 | 62 423 | 100 | 53 034 | 100 |
| Capital expenditure of the wood products | 31.3. | 31.3. | 31.12. | |||
| technology segment by geographical location | 2011 | % | 2010 | % | 2010 | % |
| Finland | 220 | 97 | 67 | 13 | 590 | 27 |
| China | 3 | 1 | 1 | 0 | 7 | 0 |
| North America | 2 | 1 | 440 | 87 | 1 606 | 72 |
| Russia | - | - | - | - | - | - |
| South America | 0 | 0 | 0 | 0 | 21 | 1 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 |
| TOTAL | 226 | 100 | 508 | 100 | 2 224 | 100 |
| 4. Net sales | ||||||
| The main part of the net sales is comprised of project deliveries related to wood products technology that are treated as long-term | ||||||
| projects. The rest of the net sales is comprised of technology services provided to the wood products industry (spare | ||||||
| parts, maintenance and modernization services as well as services provided to the development of customers' business). | ||||||
| A significant part of the Group's net sales (project deliveries and modernization in technology services) includes both product and | ||||||
| service sales. Breakdown of the Group's net sales into purely product and service sales cannot be presented reliably. | ||||||
| At the end of the reporting period, the Group had one (1) customer, whose share of the Group's net sales temporarily exceeded | ||||||
| 10 percent due to the nature of project business. | ||||||
| Net sales | 1.1.–31.3. | 1.1.–31.3. | 1.1.–31.12. | |||
| by market area | 2011 | % | 2010 | % | 2010 | % |
| Asia-Pacific | 4 089 | 28 | 761 | 7 | 18 442 | 29 |
| Russia | 2 883 | 20 | 4 705 | 45 | 18 627 | 30 |
| Finland | 2 759 | 19 | 991 | 10 | 5 094 | 8 |
| Rest of Europe | 2 057 | 14 | 1 141 | 11 | 8 805 | 14 |
| North America | 1 836 | 13 | 2 088 | 20 | 9 551 | 15 |
| South America | 958 | 6 | 746 | 7 | 2 212 | 4 |
| Others | 46 | 0 | 3 | 0 | 136 | 0 |
| TOTAL | 14 627 | 100 | 10 435 | 100 | 62 867 | 100 |
| 5. Long-term projects | 31.3. | 31.3. | 31.12. | |||
| 2011 | 2010 | 2010 | ||||
| Net sales | ||||||
| Net sales by percentage of completion | 11 630 | 8 197 | 51 860 | |||
| Other net sales | 2 997 | 2 239 | 11 007 | |||
| TOTAL | 14 627 | 10 435 | 62 867 | |||
| Project revenues entered as income from currently undelivered | ||||||
| long-term projects recognized by percentage of completion | 48 898 | 29 015 | 50 784 | |||
| Amount of long-term project revenues not yet entered as income (order book) | 46 866 | 36 435 | 31 799 | |||
| Specification of combined asset and liability items | ||||||
| Advance payments paid | 332 | 116 | 147 | |||
| Advance payments received included in inventories in the balance sheet | 332 | 116 | 147 | |||
| Accrued income corresponding to revenues by percentage of completion | 54 356 | 31 043 | 51 200 | |||
| Advance payments received from project customers | -48 120 | -26 379 | -46 490 | |||
| Project receivables included in current assets in the balance sheet | 6 236 | 4 664 | 4 710 | |||
| Advance payments received in the balance sheet | 10 985 | 12 296 | 5 243 | |||
| 6. Number of personnel, persons | 31.3. | 31.3. | 31.12. | |||
| 2011 | 2010 | 2010 | ||||
| Effective, on average | 452 | 386 | 438 | |||
| In books, on average | 483 | 514 | 512 | |||
| In books, at the end of period | 476 | 506 | 495 | |||
| - of which personnel working abroad | 128 | 124 | 129 | |||
| 7. Income taxes | ||||||
| The taxes in the consolidated income statement include the taxes corresponding to the Group companies' taxable profit for the | ||||||
| financial period as well as tax adjustments for the previous years and the change in deferred taxes. Current tax based on the | ||||||
| taxable income is calculated on taxable income using the tax rate in force in each country. Deferred tax receivables are recognized | ||||||
| to the extent that it is probable that taxable profits will be available against which temporary differences can be utilized. | ||||||
| 8. Research and development costs | 31.3. | 31.3. | 31.12. | |||
| 2011 | 2010 | 2010 | ||||
| Research and development costs for the period | 402 | 328 | 1 849 | |||
| Amortization of previously capitalized development costs | 88 | 92 | 395 | |||
| Developments costs recognized as an asset in the balance sheet | - | 7 | -41 | |||
| Research and development costs entered as expenses for the period | 490 | 428 | 2 203 | |||
| 9. Changes in Intangible assets and in Property, | 31.3. | 31.3. | 31.12. | |||
| plant and equipment | 2011 | 2010 | 2010 | |||
| Intangible assets | ||||||
| Carrying amount at the beginning of the period | 11 759 | 11 462 | 11 462 | |||
| Exchange rate differences | -13 | 18 | 71 | |||
| Additions | 30 | 14 | 151 | |||
| Other reclassifications between items | - | - | 75 | |||
| Carrying amount at the end of the period | 11 775 | 11 494 | 11 759 | |||
| Accumulated depreciation and amortization at the beginning of the period | -10 418 | -9 630 | -9 631 | |||
| Exchange rate differences | 8 | -8 | -16 | |||
| Accumulated depreciations on disposals | - | - | - | |||
| Depreciation for the period | -178 | -185 | -771 | |||
| Accumulated depreciation and amortization at the end of the period | -10 587 | -9 824 | -10 420 | |||
| Book value of intangible assets, at the beginning of the period | 1 341 | 1 831 | 1 831 | |||
| Book value of intangible assets, at the end of the period | 1 188 | 1 670 | 1 341 | |||
| Property, plant and equipment | ||||||
| Carrying amount at the beginning of the period | 43 714 | 42 022 | 42 022 | |||
| Exchange rate differences | -419 | 1 007 | 1 696 | |||
| Additions | 195 | 493 | 2 060 | |||
| Disposals | -18 | - | -1 989 | |||
| Other reclassifications between items | - | -4 414 | -75 | |||
| Carrying amount at the end of the period | 43 472 | 39 108 | 43 714 | |||
| Accumulated depreciation and amortization at the beginning of the period | -34 800 | -31 755 | -31 755 | |||
| Exchange rate differences | 356 | -911 | -1 568 | |||
| Accumulated depreciations on disposals | - | 2 772 | - | |||
| Depreciation for the period | -371 | -368 | -1 478 | |||
| Accumulated depreciation and amortization at the end of the period | -34 815 | -30 262 | -34 801 | |||
| Book value of property, plant and equipment, at the beginning of the period | 8 913 | 10 267 | 10 267 | |||
| Book value of property, plant and equipment, at the end of the period | 8 656 | 8 845 | 8 913 | |||
| 10. Related party transactions | ||||||
| Raute Group's related parties consist of Board members, President and CEO, Presidents of the subsidiaries and Raute | ||||||
| Corporation's Sickness Fund. Based on the authorization given by the Annual General Meeting 2010 the Board of Directors of | ||||||
| Raute Corporation granted stock options to the management during the financial year 2010. The main items of the terms and | ||||||
| conditions of the stock option system have been presented in the annual financial statement 2010. Group management's other employee benefits are presented in the annual financial statement. | ||||||
| 11. Interest-bearing liabilities | 31.3. | 31.3. | 31.12. | |||
| 2011 | 2010 | 2010 | ||||
| Non-current interest-bearing liabilities recognized at amortized cost | 9 921 | 14 223 | 10 000 | |||
| Current interest-bearing liabilities | 2 318 | 4 215 | 4 439 | |||
| TOTAL | 12 238 | 18 438 | 14 439 | |||
| Maturities, non-current and current liabilities total | ||||||
| Financial liability | Under 1 year | 1 - 5 years | ||||
| Pension loans (TyEL) | 2 000 | 4 000 | ||||
| Loans from financial institutions | - | 5 921 | ||||
| Other loans | 318 | 0 | ||||
| Total | 2 318 | 9 921 | ||||
| During the reporting period, Raute Corporation drew out a financial institution loan in the amount of SEK 52.9 million. The interest | ||||||
| rate and currency risks of the interest-bearing currency-denominated loan are hedged with an interest rate and currency swap agreement. | ||||||
| 12. Other lease liabilities | 31.3. | 31.3. | 31.12. | |||
| Group as lessee | 2011 | 2010 | 2010 | |||
| Minimum rents paid on the basis of other | ||||||
| non-cancellable leases: | ||||||
| - Within one year | 552 | 512 | 547 | |||
| - After the period of more than one and less than five years | 1 121 | 1 059 | 1 157 | |||
| - More than five years | 668 | 782 | 701 | |||
| TOTAL | 2 340 | 2 353 | 2 406 | |||
| The Group has rented in a part of office and production premises. The rental agreements are made for the time being or for the | ||||||
| fixed-term. The agreements made for the fixed-term include an option to extend the rental period after the date of initial expiration. | ||||||
| 13. Pledged assets and contingent liabilities | ||||||
| Raute Group has non-current credit regulation agreements worth EUR 10 million (MEUR 10) of which EUR 8 million (MEUR 10) | ||||||
| were unused on March 31, 2011. The unused credit limit is secured by a EUR 3 million business mortgage. | ||||||
| Raute Corporation has a EUR 10 million (MEUR 10) domestic commercial paper program, which allows it to issue commercial | ||||||
| papers maturing in less than one year. The program is arranged by Nordea Bank Finland Plc. | ||||||
| 31.3. | 31.3. | 31.12. | ||||
| 2011 | 2010 | 2010 | ||||
| Pledged assets on behalf of the Parent company | ||||||
| Loans from financial institutions | 5 921 | - | - | |||
| - Business mortgages | 4 700 | - | - | |||
| Pension loans (TyEL) | 6 000 | 18 000 | 14 000 | |||
| - Business mortgages | 1 800 | 4 700 | 6 700 | |||
| - Pledged assets | - | 3 000 | 1 000 | |||
| - Credit insurance agreements | 4 200 | 5 600 | 4 900 | |||
| Other loans | 100 | 100 | 100 | |||
| - Real estate mortgages | 101 | 134 | 134 | |||
| Commercial bank guarantees on behalf of the Parent | ||||||
| company and subsidiaries | 12 475 | 20 181 | 10 154 | |||
| Mortgage agreements on behalf of subsidiaries | ||||||
| Loans from financial institutions | 218 | 216 | 227 | |||
| - Business mortgages | 200 | 200 | 200 | |||
| - Counter guarantees | - | - | 3 100 | |||
| Other lease liabilities | 2 340 | 2 353 | 2 406 | |||
| Loans and guarantees on behalf of the related party | ||||||
| No loans are granted to the company's management. | ||||||
| No pledges have been given or other commitments made on behalf of the company's management and shareholders. | ||||||
| 14. Currency derivatives and hedging instruments | 31.3. | 31.3. | 31.12. | |||
| 2011 | 2010 | 2010 | ||||
| Currency derivatives are used for hedging purposes. | ||||||
| Nominal values of forward contracts in foreign currency | ||||||
| Economic hedging | ||||||
| - Related to financing | 6 284 | 1 610 | 189 | |||
| - Related to hedging of net sales | 661 | 638 | 283 | |||
| Hedge accounting | ||||||
| - Related to the hedging of net sales | - | 2 628 | - | |||
| Fair values of forward contracts in foreign currency | ||||||
| Economic hedging | ||||||
| - Related to financing | -75 | -132 | - | |||
| - Related to the hedging of net sales | -39 | 53 | 2 | |||
| Hedge accounting | ||||||
| - Related to the hedging of net sales | - | -11 | - | |||
| Interest rate swaps | ||||||
| - Nominal value | 5 921 | - | - | |||
| - Fair value | -53 | - | - | |||
| 15. Share-based payments | ||||||
| The fair value of the options granted during the financial year 2010 according to the 2010 stock option plan is recognized as an | ||||||
| expense in the income statement during the earning period of the options. The granted options are measured at fair value at their | ||||||
| grant date 5 May 2010. An expense of EUR 19 thousand was recognized for the options in the income statement during the reporting period. | ||||||
| 16. Exchange rate used | ||||||
| 1.1.–31.3. | 1.1.–31.3. | 1.1.–31.12. | ||||
| Income statement, euros | 2011 | 2010 | 2010 | |||
| USD (US dollar) | 1,3669 | 1,3842 | 1,3268 | |||
| CAD (Canadian dollar) | 1,3478 | 1,4407 | 1,3665 | |||
| SGD (Singapore dollar) | 1,7457 | 1,9415 | 1,8080 | |||
| CLP (Chilean peso) | 658,4032 | 717,6933 | 675,8537 | |||
| RUB (Russian rouble) | 40,0029 | 41,3271 | 40,2780 | |||
| CNY (Chinese yuan) | 8,9966 | 9,4507 | 8,9805 | |||
| 31.3. | 31.3. | 31.12. | ||||
| Balance sheet, euros | 2011 | 2010 | 2010 | |||
| USD (US dollar) | 1,4207 | 1,3479 | 1,3362 | |||
| CAD (Canadian dollar) | 1,3785 | 1,3687 | 1,3322 | |||
| SGD (Singapore dollar) | 1,7902 | 1,8862 | 1,7136 | |||
| CLP (Chilean peso) | 671,5218 | 709,1335 | 626,1104 | |||
| RUB (Russian rouble) | 40,2850 | 39,6950 | 40,8200 | |||
| CNY (Chinese yuan) | 9,1902 | 9,2623 | 8,7873 | |||
| 17. Events after the balance sheet date | ||||||
| Raute Corporation’s Annual General Meeting held on April 13, 2011 decided, according to the proposal of the Board of Directors, | ||||||
| that a dividend of EUR 0.30 per share be paid for the financial year 2010, i.e. a total of EUR 1,201 thousand and that the remainder | ||||||
| of the distributable assets, EUR 6,525 thousand be transferred to equity. | ||||||
| GROUP KEY RATIOS | 1.1.–31.3. | 1.1.–31.3. | 1.1.–31.12. | |||
| 2011 | 2010 | 2010 | ||||
| Return on investment (ROI), % | -13,3 | -9,9 | 5,1 | |||
| Return on equity (ROE), % | -21,5 | -16,8 | 4,9 | |||
| Gearing, % | -47,0 | -54,3 | -39,8 | |||
| Equity ratio, % | 52,4 | 44,1 | 50,7 | |||
| Order book, EUR million | 48 | 37 | 33 | |||
| Order intake, EUR million | 29 | 25 | 72 | |||
| Exported portion of net sales, % | 81,1 | 90,5 | 91,9 | |||
| Change in net sales, % | 40,2 | -8,2 | 71,6 | |||
| Gross capital expenditure, EUR million | 0,2 | 0,5 | 2,2 | |||
| % of net sales | 1,5 | 4,9 | 3,5 | |||
| Research and development costs, EUR million | 0,4 | 0,3 | 1,8 | |||
| % of net sales | 2,7 | 3,1 | 2,9 | |||
| Earnings per share (EPS), EUR | ||||||
| - undiluted | -0,32 | -0,24 | 0,29 | |||
| - diluted | -0,32 | -0,24 | 0,29 | |||
| Equity to share, EUR | 5,73 | 5,51 | 6,05 | |||
| Dividend per serie K shares, EUR | - | - | 0,30 | |||
| Dividend per serie A shares, EUR | - | - | 0,30 | |||
| Dividend per profit, % | - | - | 103,8 | |||
| Effective dividend return, % | - | - | 3,1 | |||
| Share price at the end of the reporting period, EUR | 10,15 | 7,97 | 9,70 | |||
| Number of shares | ||||||
| - weighted average, 1 000 pcs | 4 005 | 4 005 | 4 005 | |||
| - diluted, 1 000 pcs | 4 014 | 4 005 | 4 005 | |||
Calculation of key ratios
| Return on investment (ROI), % = | Profit before tax + financial expenses | x 100 | ||||
| Shareholders' equity + interest-bearing financial liabilities (average | ||||||
| of the period) | ||||||
| Return on equity (ROE), % = | Profit/loss for the period | x 100 | ||||
| Shareholders' equity (average of the period) | ||||||
| Interest-bearing net liabilities = | Interest-bearing liabilities ./. (cash and cash equivalents + financial | |||||
| assets at fair value through profit or loss) | ||||||
| Equity ratio, % = | Shareholders' equity | x 100 | ||||
| Balance Sheet total ./. advances received | ||||||
| Earnings per share, undiluted, | Profit for the period | |||||
| euros = | Equity issue-adjusted average number of shares during the period | |||||
| Earnings per share, diluted, | Diluted profit for the period | |||||
| euros = | Diluted equity issue-adjusted average number of shares | |||||
| Share of shareholders' equity belonging to the owners | ||||||
| Equity to share, euros = | of the Parent company | |||||
| Undiluted number of shares at the end of the period | ||||||
| Dividend per share, euros = | Distributed dividend for the financial year | |||||
| Undiluted number of shares at the end of the financial year | ||||||
| Dividend per profit, % = | Dividend per share | x 100 | ||||
| Earnings per share | ||||||
| Effective dividend return, % = | Dividend per share | x 100 | ||||
| Closing share price at the end of the financial year | ||||||
| Price/earnings ratio (P/E ratio) = | Closing share price at the end of the period | |||||
| Earnings per share | ||||||
| Trend in share turnover, in volume and percentage figures (series A shares)= | ||||||
| The trend in turnover of shares is given as the number of shares traded during the | ||||||
| period and as the percentage of the average undiluted number of | ||||||
| traded shares relative to issued share stock during the period. | ||||||
| Market value of capital stock = | Undiluted number of shares at the end of the period (series A + series K shares) x | |||||
| closing price of the share on the last day of the period | ||||||
| Gearing, % = | Interest-bearing net financial liabilities | x 100 | ||||
| Shareholders' equity | ||||||
| DEVELOPMENT OF | Q 1 | Q 4 | Q 3 | Q 2 | Rolling | Rolling |
| QUARTERLY RESULTS | 2011 | 2010 | 2010 | 2010 | 1.4.2010 | 1.4.2009 |
| (EUR 1 000) | – | – | ||||
| 31.3.2011 | 31.3.2010 | |||||
| NET SALES | 14 627 | 13 396 | 19 490 | 19 546 | 67 059 | 35 708 |
| Other operating income | 32 | 10 | 4 431 | 120 | 4 593 | 139 |
| Change in inventories of finished | ||||||
| goods and work in progress | 95 | 815 | -45 | -87 | 778 | 210 |
| Materials and services | -7 067 | -7 395 | -11 001 | -10 612 | -36 075 | -14 195 |
| Expenses from employee benefits | -6 047 | -6 418 | -5 450 | -6 211 | -24 126 | -21 303 |
| Depreciation and amortization | -542 | -574 | -580 | -459 | -2 155 | -2 632 |
| Other operating expenses | -2 540 | -2 166 | -1 913 | -2 194 | -8 814 | -6 835 |
| Total operating expenses | -16 196 | -16 554 | -18 944 | -19 476 | -71 170 | -44 965 |
| OPERATING PROFIT | -1 442 | -2 333 | 4 932 | 103 | 1 261 | -8 908 |
| % of net sales | -10 | -17 | 25 | 1 | 2 | -25 |
| Financial income | 211 | 266 | -98 | 185 | 563 | 482 |
| Financial expenses | -318 | -338 | 21 | -256 | -890 | -692 |
| PROFIT (LOSS) BEFORE TAX | -1 550 | -2 406 | 4 855 | 33 | 934 | -9 117 |
| % of net sales | -11 | -18 | 25 | 0 | 1 | -26 |
| Income taxes | 285 | 538 | -755 | -156 | -89 | 1 921 |
| PROFIT (LOSS) FOR THE PERIOD | -1 265 | -1 868 | 4 100 | -123 | 845 | -7 196 |
| % of net sales | -9 | -14 | 21 | -1 | 1 | -20 |
| Attributable to | ||||||
| Equity holders of the Parent company | -1 265 | -1 868 | 4 100 | -123 | 845 | -7 196 |
| Earnings per share, EUR | ||||||
| Undiluted earnings per share | -0,32 | -0,47 | 1,02 | -0,03 | ||
| Diluted earnings per share | -0,32 | -0,47 | 1,02 | -0,03 | ||
| Shares, 1 000 pcs | ||||||
| Adjusted average number of shares | 4 005 | 4 005 | 4 005 | 4 005 | ||
| Adjusted average number of shares, diluted | 4 014 | 4 005 | 4 005 | 4 005 | ||
| LARGEST SHAREHOLDERS AT | Number of | Number of | ||||
| MARCH 31, 2011 | series K | series A | ||||
| shares | shares | Total | ||||
| (20 votes | (1 vote | number | ||||
| per share) | per share) | of shares | ||||
| 1. Sundholm Göran | - | 601 433 | 601 433 | |||
| 2. Suominen Jussi Matias | 48 000 | 74 759 | 122 759 | |||
| 3. Mustakallio Kari Pauli | 60 480 | 59 500 | 119 980 | |||
| 4. Suominen Pekka | 48 000 | 62 429 | 110 429 | |||
| 5. Suominen Tiina Sini-Maria | 48 000 | 62 316 | 110 316 | |||
| 6. Siivonen Osku Pekka | 50 640 | 53 539 | 104 179 | |||
| 7. Mandatum Henkivakuutusosakeyhtiö | - | 96 900 | 96 900 | |||
| 8. Kirmo Kaisa Marketta | 50 280 | 41 826 | 92 106 | |||
| 9. Sijoitusrahasto Alfred Berg Small Cap Finland | - | 86 314 | 86 314 | |||
| 10. Lisboa De Castro Palacios Hietala M | - | 85 000 | 85 000 | |||
| 11. Keskiaho Kaija Leena | 33 600 | 51 116 | 84 716 | |||
| 12. Mustakallio Mika Tapani | 49 180 | 34 670 | 83 850 | |||
| 12. Särkijärvi Anna Riitta | 60 480 | 22 009 | 82 489 | |||
| 13. Mustakallio Ulla Sinikka | 47 240 | 30 862 | 78 102 | |||
| 15. Relander Harald Bertel | - | 62 500 | 62 500 | |||
| 16. Mustakallio Marja Helena | 43 240 | 18 162 | 61 402 | |||
| 17. Kirmo Lasse | 30 000 | 26 200 | 56 200 | |||
| 18. Särkijärvi-Martinez Anu Riitta | 12 000 | 43 256 | 55 256 | |||
| 19. Särkijärvi Timo | 12 000 | 43 256 | 55 256 | |||
| 20. Suominen Jukka Matias | 24 960 | 27 964 | 52 924 | |||
| TOTAL | 618 100 | 1 584 011 | 2 202 111 | |||
| Share of total amount of shares, % | 62,4 | 52,6 | 55,0 | |||
| Share of total voting rights, % | 62,4 | 52,6 | 61,1 | |||
| Nominee-registered | 85 994 | 85 994 | ||||
| Other shareholders | 373 061 | 1 343 592 | 1 716 653 | |||
| TOTAL | 991 161 | 3 013 597 | 4 004 758 | |||
| MANAGEMENT'S SHAREHOLDING | 144 470 | 145 049 | 289 519 | |||
| Share of total amount of shares, % | 14,6 | 4,8 | 7,2 | |||
| Share of total voting rights, % | 14,6 | 4,8 | 13,3 | |||
| SHARE INFORMATION | 31.3. | 31.3. | 31.12. | |||
| 2011 | 2010 | 2010 | ||||
| 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 | |||
| Trading in the company's shares (series A shares) | ||||||
| Trading of shares, pcs | 88 445 | 283 163 | 646 052 | |||
| Trading of shares, EUR million | 0,9 | 2,2 | 5,2 | |||
| Share price of the series A shares | ||||||
| At the end of the period, EUR | 10,15 | 7,97 | 9,70 | |||
| Highest price during the period, EUR | 11,55 | 9,34 | 10,10 | |||
| Lowest price during the period, EUR | 9,65 | 7,42 | 7,24 | |||
| Average price during the period, EUR | 10,71 | 7,90 | 8,21 | |||
| Market value of capital stock | ||||||
| - Series K shares, EUR million* | 10,1 | 7,9 | 9,6 | |||
| - Series A shares, EUR million | 30,6 | 24,0 | 29,2 | |||
| Total, EUR million | 40,6 | 31,9 | 38,8 | |||
| *Series K shares valued at the value of series A shares at the end of period. | | |||||
RAUTE CORPORATION
Board of Directors
PRESS CONFERENCE ON MAY 11, 2011 AT 2 P.M.:
A press conference will be organized for analysts, institutional investors and the media on May 11, 2011 at 2 p.m. at Scandic Marski Hotel, Talisman cabinet, Mannerheimintie 10, Helsinki. The interim report will be presented by Mr. Tapani Kiiski, President and CEO, and Mrs. Arja Hakala, CFO.
NEXT INTERIM REPORT:
Raute Corporation’s interim report January 1–June 30, 2011 will be published on Tuesday August 9, 2011.
FURTHER INFORMATION:
Mr. Tapani Kiiski, President and CEO, Raute Corporation, tel. +358 3 829 3560, mobile +358 400 814 148
Mrs. 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 services ranging from repairs and 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 2010 were EUR 62.9 million. The number of personnel at the end of 2010 was 495.
More information on the company can be found at http://www.raute.com/.