RAUTE CORPORATION - INTERIM REPORT JANUARY 1 - SEPTEMBER 30, 2011
RAUTE CORPORATION STOCK EXCHANGE RELEASE NOVEMBER 1, 2011 at 9:00 a.m.
RAUTE CORPORATION – INTERIM REPORT JANUARY 1 – SEPTEMBER 30, 2011
- The Group’s net sales amounted to EUR 59.4 million (MEUR 49.5), up 20% on the comparison period. Order intake was EUR 46 million, at the level of the comparison period (MEUR 46).
- Operating result amounted to EUR +0.4 million (MEUR +3.6, including the MEUR 4.4 profit from a real-estate sale). Result before taxes was EUR +0.1 million (MEUR +3.5).
- Earnings per share (undiluted) were EUR -0.02 (EUR +0.76).
- Third-quarter net sales amounted to EUR 21.6 million and the operating result was EUR 1.0 million. Order intake was EUR 7 million and the order book stood at EUR 21 million at the end of the reporting period (MEUR 20).
- Raute issued a profit warning on October 25, 2011, due to the weakened profit outlook. Net sales will increase from the year 2010 and the operating result is estimated to be at the break-even level or somewhat in the negative.
TAPANI KIISKI, PRESIDENT AND CEO: A REASONABLE QUARTER BEHIND US, OUTLOOK UNCERTAIN
Our third-quarter net sales were almost back to their pre-recession level, and our operating profit reached a reasonable level. We also posted a profit for the first three quarters of the year. The third quarter proves that, when the market allows reasonable net sales to be achieved, our operations are profitable.
Uncertainty in the global economic and financial markets, particularly in Europe and North America, has increased markedly in the past few months. For the time being, however, our customers have not given any direct indication that the situation has affected their plans or decisions. According to my estimate, it is nevertheless clear that the growing uncertainty in the financial markets will have some effect on our customers’ confidence in pursuing investments and acquiring financing for them. The postponement of a few projects that we were expecting to proceed with during the third quarter was no doubt the result of financing difficulties.
Several new orders forecast for the third quarter have further been postponed for various reasons. The projects have not, however, been discontinued and we continue to work with our customers on their realization. Some orders that we had originally forecast for the last quarter have proceeded favorably. As far as our customers are concerned, I estimate that the realization of those projects is now on more solid ground, and I believe they will be started up. Despite the low volume of new orders in the previous two quarters, I believe we will see an upward trend in our order intake towards the end of the year.
Due to our low order book, the final quarter of 2011 will be a challenging one for us, and we had to weaken our profit outlook for this year. We are now working hard to acquire new orders and to achieve a positive operating result.
THIRD QUARTER OF 2011
Order intake and order book
Order intake during the third quarter totaled EUR 7 million (MEUR 12). New orders consisted entirely of our technology services.
The volume of new orders remained at a low level as customers delayed their decisions on projects that were expected to be realized in the third quarter. The delays in projects are estimated to be due to typical scheduling changes in investment projects, the general economic uncertainty and the increasing difficulties in arranging financing.
The order book weakened during the third quarter by EUR 14 million, amounting to EUR 21 million at the end of the period (MEUR 20). A significant proportion of the order book is scheduled for 2012.
Net sales
Third-quarter net sales amounted to EUR 21.6 million (MEUR 19.5). The improved market prospects of the company’s customer industries increased demand, particularly in the first quarter, and resulted in a stronger order book, which contributed to net sales growth.
Technology services accounted for 32 percent of total net sales (24%).
Result and profitability
The operating result for the third quarter was EUR 1.0 million positive (MEUR 4.9 positive, including the profit of MEUR 4.4 from a real-estate sale), representing 5 percent (25%) of net sales. The third-quarter result was EUR 0.7 million positive (MEUR 4.1 positive, including the profit from a real-estate sale), and earnings per share were EUR 0.17 (EUR +1.02).
RAUTE CORPORATION – INTERIM REPORT JANUARY 1–SEPTEMBER 30, 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 manufacture of wood products used in investment commodities and are thus highly affected by fluctuations in construction, housing-related consumption, international trade, and transportation.
According to our estimate, the slow improvement in the market situation of our customer industries in 2010 and the first part of the current year has leveled out. With the exception of North America, most of the plywood and LVL manufacturers are still, however, operating at normal utilization rates. Demand for wood products in North America continues to be very sluggish as a result of the weak situation in the housing market and construction.
Demand for wood products technology and technology services
During the reporting period, demand for wood products technology and technology services remained at a normal level, in light of the market situation in the customer industries. Demand focused on smaller projects, modernizations, and other technology services, which reflects the good utilization rates in our customers’ mills.
Several larger projects – both individual production lines and complete mills – have been under prolonged planning and negotiation in many market areas. Customers will decide on and realize these projects only once they are confident that the demand has recovered permanently and once financing for the projects can be arranged.
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.
Order intake during the reporting period totaled EUR 46 million (MEUR 46). 57 percent of the new orders came from Russia (8%), 26 percent from Europe (26%), 7 percent from South America (3%), 8 percent from North America (14%) and 2 percent from Asia-Pacific (49%).
The most significant new order was received in January for the delivery of plywood mill machinery to Russia valued at more than EUR 12 million. The low order intake during the reporting period from Asia and South America can be explained by customers’ scheduling of their projects.
Technology services accounted for EUR 19 million (MEUR 12) of the order intake.
The order book weakened during the reporting period by EUR 12 million, amounting to EUR 21 million at the end of the period (MEUR 20). A significant proportion of the order book is scheduled for 2012.
COMPETITIVE POSITION
Raute’s competitive position is good. Raute’s solutions help customers in securing their delivery and service capabilities throughout the life cycle of the product. In such investments, the supplier’s overall expertise and extensive and diverse technology offering play a key role. The competitive edge provided by Raute is also a major draw when customers select their cooperation partners. Furthermore, Raute’s strong financial position enhances its credibility and improves its competitive position as a company that realizes long-term investment projects.
NET SALES
Net sales for the reporting period, EUR 59.4 million (MEUR 49.5), were up 20 percent on the comparison period. The brighter market prospects of Raute’s customer industries boosted demand, which contributed to net sales growth, particularly at the end of 2010 and in the first quarter of 2011.
Of the total net sales for the reporting period, Russia accounted for 35 percent (34%), Asia-Pacific for 27 percent (30%), Europe for 25 percent (16%), North America for 8 percent (16%), and South America for 5 percent (4%).
Technology services’ net sales grew 39 percent and accounted for 33 percent (28%) of total net sales.
RESULT AND PROFITABILITY
The operating result for the reporting period was EUR 0.4 million positive (MEUR 3.6 positive), representing one percent of net sales (+7%). The operating result benefited from EUR 4.4 million in gains from a real estate sale.
The result for the reporting period was weakened largely due to additional costs incurred during the first quarter from the drawn-out implementation of some projects that were in the installation phase.
The result before taxes for the reporting period was EUR 0.1 million positive (MEUR 3.5 positive, including the MEUR 4.4 profit from the real estate sale) and the result for the reporting period was EUR 0.1 million negative (MEUR 3.0 positive, including the profit from the real estate sale). Earnings per share (undiluted) were EUR -0.02 (EUR +0.76, including the profit from the real estate sale).
CASH FLOW AND BALANCE SHEET
The Group’s financial position is good. At the end of the reporting period, gearing was -17 percent (-19%) and the equity ratio 53 percent (50%). Other fluctuations in balance sheet working capital items and the key figures based on them are due to differences in the timing of customer payments and the cost accumulation from project deliveries, which is typical of project business.
The Group’s cash and cash equivalents, including financial assets recognized at fair value through profit or loss, amounted to EUR 14.9 million (MEUR 21.3) at the end of the reporting period. Operating cash flow was EUR -4.5 million due to the increase in working capital (MEUR -3.1). Cash flow from investment activities was EUR -1.1 million (MEUR -0.7). Cash flow from financing activities was EUR -3.3 million (MEUR -2.6), including dividend payments of EUR 1.2 million (MEUR 0.0).
Interest-bearing liabilities amounted to EUR 11.0 million (MEUR 16.5) at the end of the reporting period, with current interest-bearing liabilities accounting for EUR 3.3 million (MEUR 4.2).
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 facilities totaling EUR 9.8 million with two different Nordic banks.
EVENTS DURING THE REPORTING PERIOD
Raute Corporation published stock exchange releases on the following events:
January 20, 2011 Raute received new orders valued at over EUR 12 million from Russia.
April 13, 2011 Raute Corporation’s 2011 Annual General Meeting was held in April.
September 26, 2011 Petri Lakka appointed member of Raute Group’s Executive Board.
RESEARCH AND DEVELOPMENT COSTS AND CAPITAL EXPENDITURE
Raute aims to be the leading technology supplier in its field, investing strongly in continuous R&D, particularly in plywood and LVL manufacturing technology and the automation and instrumentation, especially machine vision, applications that support these technologies.
Research and development costs totaled EUR 1.4 million (MEUR 1.2) during the reporting period, representing 2.3 percent of net sales (2.3%). Progress has been made, in particular, in the product development of a new type of peeling station intended for the Chinese market. The first machinery installed is about to start production.
Investments totaled EUR 1.2 million (MEUR 1.8) during the reporting period. The biggest investments centered on the development and maintenance of IT systems.
PERSONNEL
At the end of the reporting period, the Group’s personnel numbered 467 (511). Group companies outside Finland accounted for 25 percent (25%) of employees.
Converted to full-time employees (“effective headcount”), the average number of employees was 459 (439) during the reporting period.
SHARES
The number of Raute Corporation’s shares at the end of the reporting period totaled 4,004,758, of which 991,161 were series K shares (ordinary share, 20 votes/share) and 3,013,597 series A shares (1 vote/share). The shares have a nominal value of 2 euros. Series K and A shares confer equal rights to dividends and company assets.
Series K shares can be converted to series A shares under the terms set out in section 3 of the Articles of Association. If an ordinary share is transferred to a new owner who has not previously held series K shares, the new owner must notify the Board of Directors of this in writing and without delay. Other holders of series K shares have the right to redeem the share under the terms specified in Article 4 of the Articles of Association.
Raute Corporation’s series A shares are listed on NASDAQ OMX Helsinki Ltd. The trading code is RUTAV. Raute Corporation has signed a market making agreement with Nordea Bank Finland Plc in compliance with the Liquidity Providing (LP) requirements issued by NASDAQ OMX Helsinki Ltd.
The company’s market capitalization at the end of the reporting period was EUR 28.8 million (MEUR 32.8), with series K shares valued at the closing price of the series A shares on September 30, 2011, which was EUR 7.18 (EUR 8.20).
The Annual General Meeting held on April 13, 2011 authorized the company’s Board of Directors to decide on the repurchase of Raute Corporation series A shares with the company’s distributable assets and on a directed share issue. The maximum number of shares to be repurchased and issued is 400,000. The Board of Directors did not exercise the authorization during the reporting period.
The company did not possess any treasury shares during the reporting period.
STOCK OPTION SCHEME 2010
The Annual General Meeting held on March 31, 2010 resolved to issue a maximum of 240,000 stock options.
In accordance with the authorization granted by the Annual General Meeting, the Board of Directors issued a total of 80,000 stock options marked with the symbol 2010 B to the Group’s key personnel on May 31, 2011 and September 26, 2011. The share subscription period for stock options 2010 B will be from March 1, 2014 to March 31, 2017 and the subscription price will be EUR 9.83.
Earlier, on May 5, 2010, 80,000 stock options 2010 A were granted to key employees of the Group under this stock option scheme.
The terms and conditions of the stock option scheme are available on the company’s website.
SHAREHOLDERS
The number of shareholders totaled 1,787 at the beginning of the year and 1,676 at the end of the reporting period. Series K shares are held by 50 private individuals (46). Management held 7.2 percent (7.0%) of the company’s shares and 13.7 percent (12.5%) 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 to the Committee is elected from outside the Board of Directors, as per the company’s Administrative Instructions, from among the representatives of major shareholders who have significant voting rights. The Board views this exception as justified, taking into consideration the company’s ownership structure and the possibility to consider the expectations of major shareholders as early as in the preparation phase of selecting members of the Board of Directors. The main points of Raute Corporation’s corporate governance principles are presented on the company’s website at www.raute.com.
Raute Corporation’s Corporate Governance Statement 2010 has been drawn up separately from the Board of Directors’ report and is published on the company’s website.
EXECUTIVE BOARD
Petri Lakka, Licentiate in Technology, was appointed member of Raute Group’s Executive Board as of September 26, 2011. Lakka joined Raute Group on September 12, 2011, as Group Vice President, Business Development.
As of September 26, 2011, the Group’s Executive Board consists of Mr. Tapani Kiiski, President and CEO (Chair); Ms. Arja Hakala, CFO; Mr. Timo Kangas, Group Vice President, Technology Services; Mr. Petri Lakka, Group Vice President, Business Development; Mr. Petri Strengell, Group Vice President, Technology and Operations; and Mr. Bruce Alexander, Group Vice President, North American Operations.
ANNUAL GENERAL MEETING 2011
Raute Corporation’s Annual General Meeting was held on April 13, 2011. A stock exchange release on the decisions of the Annual General Meeting was published on April 13, 2011.
DIVIDENDS FOR THE 2010 FINANCIAL YEAR
The Annual General Meeting held on April 13, 2011 decided to pay a dividend of EUR 0.30 per share for the financial year 2010. The dividends amounted to a total of EUR 1.2 million, of which series A shares accounted 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
At Raute Corporation’s Annual General Meeting on April 13, 2011, Mr. Erkki Pehu-Lehtonen, M.Sc. (Eng.), was elected as Chairman of the Board of Directors, Ms. Sinikka Mustakallio, Researcher, as Vice Chair, and Mr. Risto Hautamäki, M.Sc. (Eng.), Mr. Ilpo Helander, M.Sc. (Eng.), Mr. Mika Mustakallio, M.Sc. (Econ.), and Mr. Pekka Suominen, M.Sc. (Econ.) as members of the Board.
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 been a member of the Board since 1998, is dependent on the company. The Chairman of the Board (Mr. Erkki Pehu-Lehtonen) and two Board members (Mr. Ilpo Helander and Mr. Risto Hautamäki) are independent of major shareholders.
Raute Corporation’s Board of Directors has an Appointments Committee and a Working Committee. The Appointments Committee is chaired by Mr. Erkki Pehu-Lehtonen and its members are Ms. Sinikka Mustakallio and Mr. Ville Korhonen, who was elected by the major shareholders from amongst their number. The Working Committee is chaired by Mr. Erkki Pehu-Lehtonen and its members are Ms. Sinikka Mustakallio and Mr. Risto Hautamäki. The Audit Committee’s tasks are handled by the Board of Directors.
BUSINESS RISKS
Risks in the near term continue to be driven by the global economic situation and the uncertainty concerning its development. Hazards related to the growing debt of some European countries and the United States have led to mounting uncertainty about the development of the global economy and financial markets. 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.
EVENTS AFTER THE REPORTING PERIOD
Raute Corporation has published stock exchange releases on the following events after the reporting period:
October 25, 2011 Raute’s profit outlook for the full year 2011 weakened.
OUTLOOK FOR 2011
Raute’s business operations are characterized by the sensitivity of investment demand to cyclical fluctuations in the global economy and the financial markets.
Uncertainty related to the trends in the global economy and financial markets has increased since the end of summer and throughout the autumn. The market situation for Raute’s customer industries is expected to remain uncertain. Demand for wood products has not recovered to its pre-recession level. The upswing in demand seen early in the year has leveled out in recent months and in a few market areas demand has fallen again due to the hazards of growing debt among European countries and in the United States.
Demand for investments and services in the wood products industry is not expected to recover to its pre-recession level in the near future. However, upgrade investments in the plywood industry to ensure quality and maintain market shares will probably remain at a reasonable level in the near future, provided that the economic uncertainty does not spiral into a new crisis. Production line and mill-scale investment projects are being planned in several market areas. Their implementation and timing will depend on investors’ confidence that the market for wood products will remain at a reasonable level and on the arrangement of financing for customer projects in some market areas.
Thanks to its strong financial and market position and the development measures it has carried out, Raute is well positioned to respond to growing demand once the markets recover. 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 issued a profit warning on October 25, 2011, due to the weakened profit outlook. Net sales will increase from the year 2010, and the operating result is estimated to remain at the break-even level or be somewhat in the negative. The operating result will depend on whether the new orders forecast for the end of the year are realized and on the amount of revenue generated by them for 2011.
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 | 1.7.-30.9. | 1.7.-30.9. | 1.1.–30.9. | 1.1.–30.9. | 1.1.–31.12. |
| COMPREHESIVE INCOME (EUR 1 000) | 2011 | 2010 | 2011 | 2010 | 2010 | |
| NET SALES | 3, 4, 5 | 21 626 | 19 490 | 59 389 | 49 471 | 62 867 |
| Other operating income | 45 | 4 431 | 145 | 4 570 | 4 580 | |
| Change in inventories of finished | ||||||
| goods and work in progress | 223 | -45 | 1 041 | -464 | 351 | |
| Materials and services | -12 885 | -11 001 | -33 843 | -25 284 | -32 679 | |
| Expenses from employee benefits | 15 | -5 397 | -5 450 | -17 581 | -17 048 | -23 467 |
| Depreciation and amortization | -530 | -580 | -1 610 | -1 676 | -2 250 | |
| Other operating expenses | -2 071 | -1 913 | -7 158 | -5 924 | -8 091 | |
| Total operating expenses | -20 883 | -18 944 | -60 192 | -49 933 | -66 487 | |
| OPERATING PROFIT | 1 011 | 4 932 | 382 | 3 644 | 1 311 | |
| % of net sales | 5 | 25 | 1 | 7 | 2 | |
| Financial income | 242 | -98 | 765 | 463 | 728 | |
| Financial expenses | -403 | 21 | -1 083 | -579 | -917 | |
| PROFIT (LOSS) BEFORE TAX | 850 | 4 855 | 65 | 3 528 | 1 122 | |
| % of net sales | 4 | 25 | 0 | 7 | 2 | |
| Income taxes | 7 | -180 | -755 | -140 | -502 | 36 |
| PROFIT (LOSS) FOR THE PERIOD | 670 | 4 100 | -75 | 3 026 | 1 158 | |
| % of net sales | 3 | 21 | 0 | 6 | 2 | |
| Other comprehensive income items: | ||||||
| Exchange differences on translating foreign operations | 3 | -19 | -34 | -67 | -20 | |
| Cash flow hedging | - | 5 | - | 13 | -19 | |
| Income tax related to cash flow hedges | - | -1 | - | -3 | 5 | |
| Comprehensive income items for | ||||||
| the period, net of tax | 3 | -15 | -34 | -57 | -34 | |
| COMPREHENSIVE PROFIT (LOSS) FOR THE PERIOD | 673 | 4 085 | -109 | 2 969 | 1 124 | |
| Profit (loss) for the period attributable to | ||||||
| Equity holders of the Parent company | 670 | 4 100 | -75 | 3 026 | 1 158 | |
| Comprehensive profit (loss) for the period | ||||||
| attributable to | ||||||
| Equity holders of the Parent company | 673 | 4 085 | -109 | 2 969 | 1 124 | |
| Earnings per share for profit (loss) attributable | ||||||
| to Equity holders of the Parent company, EUR | ||||||
| Undiluted earnings per share | 0,17 | 1,02 | -0,02 | 0,76 | 0,29 | |
| Diluted earnings per share | 0,17 | 1,00 | -0,02 | 0,75 | 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 | 4 009 | 4 085 | 4 009 | 4 048 | 4 005 | |
| CONSOLIDATED BALANCE SHEET | Note | 30.9. | 30.9. | 31.12. |
| (EUR 1 000) | 2011 | 2010 | 2010 | |
| ASSETS | ||||
| Non-current assets | ||||
| Intangible assets | 9 | 1 245 | 1 637 | 1 341 |
| Property, plant and equipment | 9 | 8 163 | 8 751 | 8 913 |
| Other financial assets | 789 | 497 | 497 | |
| Receivables | 873 | - | - | |
| Deferred tax assets | 1 382 | 1 350 | 1 849 | |
| Total | 12 453 | 12 235 | 12 599 | |
| Current assets | ||||
| Inventories | 5 265 | 4 704 | 4 574 | |
| Accounts receivables and other receivables | 5 | 15 329 | 18 205 | 11 770 |
| Income tax receivable | 285 | - | - | |
| Cash and cash equivalents | 14 938 | 21 307 | 24 090 | |
| Total | 35 818 | 44 215 | 40 435 | |
| TOTAL ASSETS | 48 270 | 56 450 | 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 | 127 | 335 | 36 |
| Exchange differences | 1 | -12 | 35 | |
| Retained earnings | 8 447 | 8 196 | 8 490 | |
| Profit (loss) for the period | -75 | 3 026 | 1 158 | |
| Share of shareholders' equity that belongs | ||||
| to the owners of the Parent company | 23 008 | 26 053 | 24 227 | |
| Total shareholders' equity | 23 008 | 26 053 | 24 227 | |
| Non-current liabilities | ||||
| Provisions | 79 | 45 | 57 | |
| Deferred tax liabilities | - | 257 | 337 | |
| Non-current interest-bearing liabilities | 11 | 7 716 | 12 245 | 10 000 |
| Total | 7 794 | 12 547 | 10 394 | |
| Current liabilities | ||||
| Provisions | 679 | 1 029 | 612 | |
| Pension obligations | 96 | 124 | 91 | |
| Current interest-bearing liabilities | 11 | 3 327 | 4 215 | 4 439 |
| Advance payments received | 5 | 5 058 | 4 532 | 5 243 |
| Current tax liabilities | - | 134 | - | |
| Trade and other payables | 8 307 | 7 815 | 8 028 | |
| Total | 17 468 | 17 850 | 18 413 | |
| Total liabilities | 25 262 | 30 397 | 28 807 | |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 48 270 | 56 450 | 53 034 | |
| CONSOLIDATED STATEMENT OF CASH FLOWS | 1.1.–30.9. | 1.1.–30.9. | 1.1.–31.12. | |
| (EUR 1 000) | 2011 | 2010 | 2010 | |
| CASH FLOW FROM OPERATING ACTIVITIES | ||||
| Proceeds from sales | 63 884 | 45 385 | 57 338 | |
| Proceeds from other operating income | 74 | 103 | 121 | |
| Payments of operating expenses | -68 098 | -47 930 | -63 416 | |
| Cash flow before financial items and taxes | -4 140 | -2 443 | -5 958 | |
| Interests and other operating financial expenses paid | -295 | -869 | -650 | |
| Interests and other income received | 81 | 131 | 394 | |
| Dividends received | 108 | 87 | 118 | |
| Income taxes paid | -283 | 11 | -18 | |
| NET CASH FLOW FROM OPERATING ACTIVITIES (A) | -4 529 | -3 084 | -6 114 | |
| CASH FLOW FROM INVESTING ACTIVITIES | ||||
| Capital expenditure in tangible and intangible assets | -877 | -1 721 | -2 067 | |
| Purchases of assets-for-sale as investments | - | -11 | -11 | |
| Purchase of investments | -293 | - | - | |
| Proceeds from sale of tangible and intangible assets | 67 | 990 | 6 448 | |
| NET CASH FLOW FROM INVESTING ACTIVITIES (B) | -1 102 | -741 | 4 370 | |
| CASH FLOW FROM FINANCING ACTIVITIES | ||||
| Increase of non-current and current receivables | - | -500 | - | |
| Decrease of non-current and current receivables | 1 000 | - | 2 000 | |
| Repayments of current borrowings | -115 | -100 | -228 | |
| Increase of non-current borrowings | 6 000 | - | - | |
| Repayments of non-current borrowings | -9 000 | -2 000 | -4 088 | |
| Dividends paid | -1 201 | - | - | |
| NET CASH FLOW FROM FINANCING ACTIVITIES (C) | -3 316 | -2 599 | -2 316 | |
| NET CHANGE IN CASH AND CASH EQUIVALENTS (A+B+C) | -8 947 | -6 425 | -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 | -205 | -168 | 251 | |
| CASH AND CASH EQUIVALENTS AT THE END | ||||
| OF THE PERIOD* | 14 938 | 21 307 | 24 090 | |
| CASH AND CASH EQUIVALENTS IN THE BALANCE | ||||
| SHEET AT THE END OF THE PERIOD | ||||
| Cash and cash equivalents | 14 938 | 21 307 | 24 090 | |
| TOTAL | 14 938 | 21 307 | 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 | - | - | - | - | -75 |
| Comprehensive profit (loss) for the period: | |||||
| Exchange differences on translating | |||||
| foreign operations | - | - | - | -34 | - |
| Cash flow hedging, net of tax | - | - | - | - | - |
| Total comprehensive profit (loss) | |||||
| for the period | 0 | 0 | 0 | -34 | -75 |
| Dividends | - | - | - | - | -1 201 |
| Equity-settled share-based transactions | - | - | 91 | - | - |
| EQUITY Sept. 30, 2011 | 8 010 | 6 498 | 127 | 1 | 8 371 |
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (continue) | |||||
| To the owners | |||||
| of the Parent | EQUITY | ||||
| (EUR 1 000) | company | TOTAL | |||
| EQUITY Jan. 1, 2011 | 24 227 | 24 227 | |||
| Profit (loss) for the period | -75 | -75 | |||
| Comprehensive profit (loss) for the period: | |||||
| Exchange differences on translating | |||||
| foreign operations | -34 | -34 | |||
| Cash flow hedging, net of tax | - | - | |||
| Total comprehensive profit (loss) | |||||
| for the period | -109 | -109 | |||
| Dividends | -1 201 | -1 201 | |||
| Equity-settled share-based transactions | 91 | 91 | |||
| EQUITY Sept. 30, 2011 | 23 008 | 23 008 | |||
| 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 | - | - | - | - | 3 026 |
| Comprehensive profit (loss) for the period: | |||||
| Exchange differences on translating | |||||
| foreign operations | - | - | - | -67 | - |
| Cash flow hedging, net of tax | - | - | 10 | - | - |
| Total comprehensive profit (loss) | |||||
| for the period | 0 | 0 | 10 | -67 | 3 026 |
| Dividends | - | - | - | - | - |
| Equity-settled share-based transactions | - | - | 31 | - | - |
| EQUITY Sept. 30, 2010 | 8 010 | 6 498 | 335 | -12 | 11 222 |
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (continue) | |||||
| To the owners | |||||
| of the Parent | EQUITY | ||||
| (EUR 1 000) | company | TOTAL | |||
| EQUITY Jan. 1, 2010 | 23 053 | 23 053 | |||
| Profit (loss) for the period | 3 026 | 3 026 | |||
| Comprehensive profit (loss) for the period: | |||||
| Exchange differences on translating | |||||
| foreign operations | -67 | -67 | |||
| Cash flow hedging, net of tax | 10 | 10 | |||
| Total comprehensive profit (loss) | |||||
| for the period | 2 969 | 2 969 | |||
| Dividends | - | - | |||
| Equity-settled share-based transactions | 31 | 31 | |||
| EQUITY Sept. 30, 2010 | 26 053 | 26 053 | |||
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 November 1, 2011 reviewed the Group's Interim financial report for January 1 -September 30, 2011, and approved the Interim financial report for January 1 – September 30, 2011 to be published in compliance with this release.
2. Accounting principles
Raute Corporation’s Interim financial report January 1 – September 30, 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 – September 30, 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
- Annual Improvements to standards and interpretations.
The new standards, amendments and interpretations do not have any significant impact on the Group's Interim financial report.
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 ofcommitments 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.
| 30.9. | 30.9. | 31.12. | ||||
| Wood products technology | 2011 | 2010 | 2010 | |||
| Net sales | 59 389 | 49 471 | 62 867 | |||
| Operating profit | 382 | 3 644 | 1 311 | |||
| Assets | 48 270 | 56 450 | 53 034 | |||
| Liabilities | 25 262 | 30 397 | 28 807 | |||
| Capital expenditure | 1 162 | 1 785 | 2 224 | |||
| Assets of the wood products technology | 30.9. | 30.9. | 31.12. | |||
| segment by geographical location | 2011 | % | 2010 | % | 2010 | % |
| Finland | 41 887 | 87 | 46 497 | 82 | 44 006 | 83 |
| North America | 3 526 | 7 | 7 308 | 13 | 3 730 | 7 |
| China | 1 410 | 3 | 1 430 | 4 | 4 129 | 8 |
| Russia | 1 107 | 2 | 929 | 2 | 880 | 2 |
| South America | 179 | 0 | 146 | 0 | 160 | 0 |
| Others | 161 | 0 | 140 | 0 | 129 | 0 |
| TOTAL | 48 270 | 100 | 56 450 | 100 | 53 034 | 100 |
| Capital expenditure of the wood products | 30.9. | 30.9. | 31.12. | |||
| technology segment by geographical location | 2011 | % | 2010 | % | 2010 | % |
| Finland | 1 143 | 98 | 315 | 18 | 590 | 27 |
| North America | 3 | 0 | 1 444 | 81 | 1 606 | 72 |
| China | 14 | 1 | 6 | 0 | 7 | 0 |
| Russia | - | - | - | - | - | - |
| South America | 1 | 0 | 20 | 1 | 21 | 1 |
| Others | 1 | 0 | - | - | - | - |
| TOTAL | 1 162 | 100 | 1 785 | 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 two (2) customers, whose share of the Group's net sales temporarily exceeded 10 percent due to the nature of project business.
| Net sales | 1.1.–30.9. | 1.1.–30.9. | 1.1.–31.12. | |||
| by market area | 2011 | % | 2010 | % | 2010 | % |
| Russia | 20 870 | 35 | 16 696 | 34 | 18 627 | 30 |
| Asia-Pacific | 15 825 | 27 | 14 676 | 30 | 18 442 | 29 |
| Finland | 7 679 | 13 | 3 606 | 7 | 5 094 | 8 |
| Rest of Europe | 7 156 | 12 | 4 710 | 9 | 8 805 | 14 |
| North America | 4 780 | 8 | 8 048 | 16 | 9 551 | 15 |
| South America | 2 966 | 5 | 1 735 | 4 | 2 212 | 4 |
| Others | 112 | 0 | - | - | 136 | 0 |
| TOTAL | 59 389 | 100 | 49 471 | 100 | 62 867 | 100 |
| 5. Long-term projects | 30.9. | 30.9. | 31.12. | |||
| 2011 | 2010 | 2010 | ||||
| Net sales | ||||||
| Net sales by percentage of completion | 48 214 | 41 388 | 51 860 | |||
| Other net sales | 11 175 | 8 084 | 11 007 | |||
| TOTAL | 59 389 | 49 471 | 62 867 | |||
| Project revenues entered as income from currently undelivered | ||||||
| long-term projects recognized by percentage of completion | 63 781 | 48 638 | 50 784 | |||
| Amount of long-term project revenues not yet entered as income (order book) | 19 393 | 19 066 | 31 799 | |||
| Specification of combined asset and liability items | ||||||
| Advance payments paid | 277 | 223 | 147 | |||
| Advance payments received included in inventories in the balance sheet | 277 | 223 | 147 | |||
| Accrued income corresponding to revenues by percentage of completion | 69 671 | 48 595 | 51 200 | |||
| Advance payments received from project customers | -60 223 | -44 106 | -46 490 | |||
| Project receivables included in current assets in the balance sheet | 9 448 | 4 489 | 4 710 | |||
| Advance payments in the balance sheet | 5 058 | 4 532 | 5 243 | |||
| 6. Number of personnel, persons | 30.9. | 30.9. | 31.12. | |||
| 2011 | 2010 | 2010 | ||||
| Effective, on average | 459 | 439 | 438 | |||
| In books, on average | 478 | 516 | 512 | |||
| In books, at the end of period | 467 | 511 | 495 | |||
| - of which personnel working abroad | 115 | 128 | 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 | 30.9. | 30.9. | 31.12. | |||
| 2011 | 2010 | 2010 | ||||
| Research and development costs for the period | 1 353 | 1 152 | 1 849 | |||
| Amortization of previously capitalized development costs | 216 | 289 | 395 | |||
| Development costs recognized as an asset in the balance sheet | -178 | -17 | -41 | |||
| Research and development costs entered as expenses for the period | 1 391 | 1 424 | 2 203 | |||
| 9. Changes in Intangible assets and in Property, | 30.9. | 30.9. | 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 | 1 | 31 | 71 | |||
| Additions | 294 | 309 | 151 | |||
| Other reclassifications between items | 82 | 57 | 75 | |||
| Carrying amount at the end of the period | 12 135 | 11 858 | 11 759 | |||
| Accumulated depreciation and amortization at the beginning of the period | -10 418 | -9 630 | -9 631 | |||
| Exchange rate differences | -1 | -16 | -16 | |||
| Depreciation for the period | -471 | -574 | -771 | |||
| Accumulated depreciation and amortization at the end of the period | -10 889 | -10 221 | -10 418 | |||
| 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 | 1 245 | 1 637 | 1 341 | |||
| Property, plant and equipment | ||||||
| Carrying amount at the beginning of the period | 43 714 | 42 022 | 42 022 | |||
| Exchange rate differences | -632 | 773 | 1 696 | |||
| Additions | 576 | 1 465 | 2 060 | |||
| Disposals | -33 | -1 921 | -1 989 | |||
| Other reclassifications between items | -82 | -57 | -75 | |||
| Carrying amount at the end of the period | 43 543 | 42 282 | 43 714 | |||
| Accumulated depreciation and amortization at the beginning of the period | -34 800 | -31 755 | -31 755 | |||
| Exchange rate differences | 561 | -682 | -1 568 | |||
| Depreciation for the period | -1 140 | -1 094 | -1 478 | |||
| Accumulated depreciation and amortization at the end of the period | -35 380 | -33 530 | -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 | 8 163 | 8 751 | 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 has granted stock options to the management. The main items of the terms and conditions of the stock option system granted during the financial year 2010 have been presented in the annual financial statement 2010. The main items of the terms and conditions of the stock option system granted during the reporting period 2011 and the impact of all granted option systems on the profit (loss) for the reporting period, have been presented in the note number 15. Group management's other employee benefits are presented in the annual financial statement.
| 11. Interest-bearing liabilities | 30.9. | 30.9. | 31.12. | |||
| 2011 | 2010 | 2010 | ||||
| Non-current interest-bearing liabilities recognized at amortized cost | 7 716 | 12 245 | 10 000 | |||
| Current interest-bearing liabilities | 3 327 | 4 215 | 4 439 | |||
| TOTAL | 11 043 | 16 461 | 14 439 | |||
| Maturities, non-current and current liabilities total | ||||||
| Financial liability | Under 1 year | 1 - 5 years | ||||
| Pension loans (TyEL) | 2 000 | 3 000 | ||||
| Loans from financial institutions | 1 000 | 4 715 | ||||
| Other loans | 327 | - | ||||
| Total | 3 327 | 7 715 | ||||
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 | 30.9. | 30.9. | 31.12. | |||
| Group as lessee | 2011 | 2010 | 2010 | |||
| Minimum rents paid on the basis of other | ||||||
| non-cancellable leases: | ||||||
| - Within one year | 553 | 570 | 547 | |||
| - After the period of more than one and less than five years | 995 | 1 169 | 1 157 | |||
| - More than five years | 565 | 749 | 701 | |||
| TOTAL | 2 113 | 2 488 | 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 5 non-current and MEUR 5 current) of which EUR 8 million (MEUR 5) were unused on September 30, 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.
| 30.9. | 30.9. | 31.12. | ||||
| 2011 | 2010 | 2010 | ||||
| Pledged assets on behalf of the Parent company | ||||||
| Loans from financial institutions | 5 715 | - | - | |||
| - Business mortgages | 3 500 | - | - | |||
| Pension loans (TyEL) | 5 000 | 16 000 | 14 000 | |||
| - Business mortgages | 1 500 | 4 700 | 6 700 | |||
| - Pledged assets | - | 2 000 | 1 000 | |||
| - Credit insurance agreements | 3 500 | 4 900 | 4 900 | |||
| Other loans | 100 | 100 | 100 | |||
| - Real estate mortgages | 101 | 134 | 134 | |||
| Commercial bank guarantees on behalf of the Parent | ||||||
| company and subsidiaries | 15 187 | 20 841 | 10 154 | |||
| Mortgage agreements on behalf of subsidiaries | ||||||
| Loans from financial institutions | 227 | 227 | 227 | |||
| - Business mortgages | 200 | 200 | 200 | |||
| - Counter guarantees | - | - | 3 100 | |||
| Other lease liabilities | 2 113 | 2 488 | 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 | 30.9. | 30.9. | 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 | 1 016 | 2 398 | 189 | |||
| - Related to hedging of net sales | 147 | - | 283 | |||
| Hedge accounting | ||||||
| - Related to the hedging of net sales | - | 737 | - | |||
| Fair values of forward contracts in foreign currency | ||||||
| Economic hedging | ||||||
| - Related to financing | 11 | 33 | - | |||
| - Related to the hedging of net sales | - | - | 2 | |||
| Hedge accounting | ||||||
| - Related to the hedging of net sales | - | 13 | - | |||
| Interest rate and currency swap agreements | ||||||
| - Nominal value | 5 715 | - | - | |||
| - Fair value | -529 | - | - | |||
15. Share-based payments
The fair value of the options granted according to the 2010 stock option plan is recognized as an expense in the income statement during the earning period of the options. The options granted during the financial year 2010 are measured at fair value at their grant date 5 May 2010. Based on the authorization given by the Annual General Meeting the Board of Directors of Raute Corporation has granted 80,000 stock options marked with symbol 2010 B to the Group's key persons during the interim period. The granted options have been valued at fair value upon the grant date.
| The conditions of the option systems granted during the financial period are: | |||||
| Arrangement | Stock option | ||||
| Grant date | May 31, 2011 | ||||
| Options granted | 75 000 pcs | ||||
| Subscription price | EUR 9.83 | ||||
| Share price at the grant date | EUR 10.50 | ||||
| Exercise period | 3 years | ||||
| Subscription period | March 1, 2014 - March 31, 2017 | ||||
| Settlement | Shares | ||||
| Arrangement | Stock option | ||||
| Grant date | September 26, 2011 | ||||
| Options granted | 5 000 pcs | ||||
| Subscription price | EUR 9.83 | ||||
| Share price at the grant date | EUR 7.33 | ||||
| Exercise period | 3 years | ||||
| Subscription period | March 1, 2014 - March 31, 2017 | ||||
| Settlement | Shares | ||||
An expense of EUR 91 thousand was recognized for the options in the income statement during the reporting period.
| 16. Exchange rate used | ||||||
| 1.1.–30.9. | 1.1.–30.9. | 1.1.–31.12. | ||||
| Income statement, euros | 2011 | 2010 | 2010 | |||
| USD (US dollar) | 1,4063 | 1,3160 | 1,3268 | |||
| CAD (Canadian dollar) | 1,3746 | 1,3630 | 1,3665 | |||
| SGD (Singapore dollar) | 1,7539 | 1,8205 | 1,8080 | |||
| CLP (Chilean peso) | 666,4074 | 683,6779 | 675,8537 | |||
| RUB (Russian rouble) | 40,4803 | 39,7905 | 40,2780 | |||
| CNY (Chinese juan) | 9,1392 | 8,9581 | 8,9805 | |||
| 30.9. | 30.9. | 31.12. | ||||
| Balance sheet, euros | 2011 | 2010 | 2010 | |||
| USD (US dollar) | 1,3503 | 1,3648 | 1,3362 | |||
| CAD (Canadian dollar) | 1,4105 | 1,4073 | 1,3322 | |||
| SGD (Singapore dollar) | 1,7589 | 1,7942 | 1,7136 | |||
| CLP (Chilean peso) | 668,5192 | 644,2344 | 626,1104 | |||
| RUB (Russian rouble) | 43,3500 | 41,6923 | 40,8200 | |||
| CNY (Chinese juan) | 8,7994 | 8,8104 | 8,7873 | |||
| GROUP KEY RATIOS | 1.1.–30.9. | 1.1.–30.9. | 1.1.–31.12. | |||
| 2011 | 2010 | 2010 | ||||
| Return on investment (ROI), % | 4,2 | 13,0 | 5,1 | |||
| Return on equity (ROE), % | -0,4 | 16,4 | 4,9 | |||
| Gearing, % | -16,9 | -18,6 | -39,8 | |||
| Equity ratio, % | 53,2 | 50,2 | 50,7 | |||
| Order book, EUR million | 21 | 20 | 33 | |||
| Order intake, EUR million | 46 | 46 | 72 | |||
| Exported portion of net sales, % | 87,1 | 92,7 | 91,9 | |||
| Change in net sales, % | 20,0 | 70,7 | 71,6 | |||
| Gross capital expenditure, EUR million | 1,2 | 1,8 | 2,2 | |||
| % of net sales | 2,0 | 3,6 | 3,5 | |||
| Research and development costs, EUR million | 1,4 | 1,2 | 1,8 | |||
| % of net sales | 2,3 | 2,3 | 2,9 | |||
| Earnings per share (EPS), EUR | ||||||
| - undiluted | -0,02 | 0,76 | 0,29 | |||
| - diluted | -0,02 | 0,75 | 0,29 | |||
| Equity to share, EUR | 5,75 | 6,51 | 6,05 | |||
| Dividend per share series K shares, EUR | - | - | 0,30 | |||
| Dividend per share series 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 | 7,18 | 8,20 | 9,70 | |||
| Number of shares | ||||||
| - weighted average, 1 000 pcs | 4 005 | 4 005 | 4 005 | |||
| - diluted, 1 000 pcs | 4 009 | 4 048 | 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, | ||||||
| euros = | Profit for the period | |||||
| Equity issue-adjusted average number of shares during the period | ||||||
| Earnings per share, diluted, | ||||||
| euros = | Diluted profit for the period | |||||
| 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 3 | Q 2 | Q 1 | Q 4 | Rolling | Rolling |
| QUARTERLY RESULTS | 2011 | 2011 | 2011 | 2010 | 1.10.2010 | 1.10.2009 |
| (EUR 1 000) | – | – | ||||
| 30.9.2011 | 30.9.2010 | |||||
| NET SALES | 21 626 | 23 136 | 14 627 | 13 396 | 72 785 | 57 122 |
| Other operating income | 45 | 68 | 32 | 10 | 155 | 4 593 |
| Change in inventories of finished | ||||||
| goods and work in progress | 223 | 723 | 95 | 815 | 1 856 | -164 |
| Materials and services | -12 885 | -13 891 | -7 067 | -7 395 | -41 238 | -28 551 |
| Expenses from employee benefits | -5 397 | -6 137 | -6 047 | -6 418 | -23 999 | -22 801 |
| Depreciation and amortization | -530 | -538 | -542 | -574 | -2 184 | -2 305 |
| Other operating expenses | -2 071 | -2 547 | -2 540 | -2 166 | -9 324 | -7 574 |
| Total operating expenses | -20 883 | -23 113 | -16 196 | -16 554 | -76 745 | -61 231 |
| OPERATING PROFIT | 1 011 | 814 | -1 442 | -2 333 | -1 950 | 319 |
| % of net sales | 5 | 4 | -10 | -17 | -3 | 1 |
| Financial income | 242 | 313 | 211 | 266 | 1 031 | 532 |
| Financial expenses | -403 | -362 | -318 | -338 | -1 421 | -787 |
| PROFIT (LOSS) BEFORE TAX | 850 | 764 | -1 550 | -2 406 | -2 339 | 65 |
| % of net sales | 4 | 3 | -11 | -18 | -3 | 0 |
| Income taxes | -180 | -244 | 285 | 538 | 398 | 72 |
| PROFIT (LOSS) FOR THE PERIOD | 670 | 520 | -1 265 | -1 868 | -1 941 | 137 |
| % of net sales | 3 | 2 | -9 | -14 | -3 | 0 |
| Attributable to | ||||||
| Equity holders of the Parent company | 670 | 520 | -1 265 | -1 868 | -1 941 | 137 |
| Earnings per share, EUR | ||||||
| Undiluted earnings per share | 0,17 | 0,13 | -0,32 | -0,47 | ||
| Diluted earnings per share | 0,17 | 0,13 | -0,32 | -0,47 | ||
| Shares, 1 000 pcs | ||||||
| Adjusted average number of shares | 4 005 | 4 005 | 4 005 | 4 005 | ||
| Adjusted average number of shares, diluted | 4 009 | 4 012 | 4 014 | 4 005 | ||
| LARGEST SHAREHOLDERS AT | Number of | Number of | ||||
| SEPTEMBER 30, 2011 | series K | series A | ||||
| shares | shares | Total | ||||
| (20 votes | (1 vote | number | ||||
| per share) | per share) | of shares | ||||
| 1. Sundholm Göran | - | 623 998 | 623 998 | |||
| 2. Sijoitusrahasto Alfred Berg Small Cap Finland | - | 123 954 | 123 954 | |||
| 3. Suominen Jussi Matias | 48 000 | 74 759 | 122 759 | |||
| 4. Mustakallio Kari Pauli | 60 480 | 59 500 | 119 980 | |||
| 5. Suominen Pekka | 48 000 | 62 429 | 110 429 | |||
| 6. Suominen Tiina Sini-Maria | 48 000 | 62 316 | 110 316 | |||
| 7. Siivonen Osku Pekka | 50 640 | 53 539 | 104 179 | |||
| 8. Mandatum Henkivakuutusosakeyhtiö | - | 96 900 | 96 900 | |||
| 9. Kirmo Kaisa Marketta | 50 280 | 41 826 | 92 106 | |||
| 10. Mustakallio Mika Tapani | 54 180 | 31 670 | 85 850 | |||
| 11. Lisboa De Castro Palacios Hietala Marta | - | 85 000 | 85 000 | |||
| 12. Keskiaho Kaija Leena | 33 600 | 51 116 | 84 716 | |||
| 13. Särkijärvi Anna Riitta | 60 480 | 22 009 | 82 489 | |||
| 14. Mustakallio Ulla Sinikka | 47 240 | 30 862 | 78 102 | |||
| 15. Relander Harald Bertel | - | 65 000 | 65 000 | |||
| 16. Mustakallio Marja Helena | 43 240 | 18 162 | 61 402 | |||
| 17. Särkijärvi-Martinez Anu Riitta | 12 000 | 43 256 | 55 256 | |||
| 18. Särkijärvi Timo | 12 000 | 43 256 | 55 256 | |||
| 19. Kirmo Lasse | 30 000 | 24 110 | 54 110 | |||
| 20. Suominen Jukka Matias | 24 960 | 27 964 | 52 924 | |||
| TOTAL | 623 100 | 1 641 626 | 2 264 726 | |||
| Share of total amount of shares, % | 62,9 | 54,5 | 56,6 | |||
| Share of total voting rights, % | 62,9 | 54,5 | 61,8 | |||
| Nominee-registered | 84 756 | 84 756 | ||||
| Other shareholders | 368 061 | 1 287 215 | 1 655 276 | |||
| TOTAL | 991 161 | 3 013 597 | 4 004 758 | |||
| MANAGEMENT'S SHAREHOLDING | 149 470 | 138 049 | 287 519 | |||
| Share of total amount of shares, % | 15,1 | 4,6 | 7,2 | |||
| Share of total voting rights, % | 15,1 | 4,6 | 13,7 | |||
| SHARE INFORMATION | 30.9. | 30.9. | 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 of the company's shares (series A shares) | ||||||
| Trading of shares, pcs | 303 381 | 435 123 | 646 052 | |||
| Trading of shares, EUR million | 2,9 | 3,4 | 5,2 | |||
| Share price of the series A shares | ||||||
| At the end of the period, EUR | 7,18 | 8,20 | 9,70 | |||
| Highest price during the period, EUR | 11,55 | 9,34 | 10,10 | |||
| Lowest price during the period, EUR | 6,95 | 7,24 | 7,24 | |||
| Average price during the period, EUR | 9,47 | 7,91 | 8,21 | |||
| Market value of capital stock | ||||||
| - Series K shares, EUR million* | 7,1 | 8,1 | 9,6 | |||
| - Series A shares, EUR million | 21,6 | 24,7 | 29,2 | |||
| Total, EUR million | 28,8 | 32,8 | 38,8 | |||
*Series K shares valued at the value of series A shares at the end of reporting period.
RAUTE CORPORATION
Board of Directors
BRIEFING ON NOVEMBER 1, 2011 AT 2 P.M.:
A briefing for analysts, investors and the media will be organized on November 1, 2011 at 2 p.m. at Scandic Simonkenttä Hotel, Roba cabinet, Simonkatu 9, Helsinki. The interim report will be presented by Mr. Tapani Kiiski, President and CEO, and Ms. Arja Hakala, CFO.
RAUTE CORPORATION'S FINANCIAL RELEASES IN 2012:
Raute Corporation will publish a release of its financial statements for 2011 on Tuesday February 14, 2012.
Raute’s interim reports will be published as follows:
- January - March on Friday May 4, 2012
- January - June on Tuesday July 31, 2012
- January - September on Tuesday October 30, 2012.
Raute Corporation’s Annual general meeting is scheduled to be held in Lahti on Monday April 16, 2012.
FURTHER INFORMATION:
Mr. Tapani Kiiski, President and CEO, Raute Corporation, tel. +358 3 829 3560, mobile +358 400 814 148
Ms. Arja Hakala, CFO, Raute Corporation, tel. +358 3 829 3293, mobile +358 400 710 387
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd, main media, www.raute.com
RAUTE IN BRIEF:
Raute is a technology and service company that operates worldwide. Raute’s customers are companies operating in the wood products industry that manufacture veneer, plywood and LVL (Laminated Veneer Lumber). The technology offering covers machinery and equipment for the entire production process. As a supplier of mill-scale projects Raute is a global market leader both in the plywood and LVL industries. Additionally, Raute’s full-service concept includes 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.