Raute Corporation - Interim report January 1-March 31, 2012
RAUTE CORPORATION INTERIM REPORT May 4, 2012 at 9:00 a.m.
RAUTE CORPORATION – INTERIM REPORT JANUARY 1–MARCH 31, 2012
- The Group’s net sales, EUR 15.1 million (MEUR 14.6), increased 3% on the comparison period.
- Operating profit was EUR -0.5 million (MEUR -1.4). Result before taxes was EUR -0.5 million (MEUR -1.6).
- Earnings per share (undiluted) were EUR -0.12 (EUR -0.32).
- Order intake was EUR 61 million (MEUR 29) and the order book at the end of the reporting period increased to EUR 82 million (MEUR 48).
- The outlook for financial performance remains unchanged. Net sales in 2012 will increase significantly on the comparison year and the operating profit will be clearly positive.
Tapani Kiiski, President and CEO: Record-breaking order secures good start to the year
The net sales for the first quarter of the year remained low. The order intake, on the other hand, reached a record high. Also taking into account the significant amount of orders we received during the final quarter of 2011, we can already at this stage be fairly certain of our outlook for the year in progress.
The proportion of mill-scale projects presently in our order book is exceptionally large. Once an order has been received, net sales begin to accumulate more slowly for mill-scale projects than for individual line or equipment deliveries. Due to this our net sales remained low in the first quarter despite our good order book situation at the beginning of the year. Our result was negative as a result of the low net sales. In light of the actual net sales of EUR 15 million, the operating loss of some half a million euros was in line with our estimates.
For several years now the volume of new orders has fluctuated dramatically from quarter to quarter. We have typically received major orders at the end of the year and at the beginning of the year. The middle of the year has, however, been quiet on the order front. We have been unable to identify any specific reason for this recurring fluctuation which has continued for several years. The variation in the volume of our order intake has created powerful fluctuations in our net sales with a delay of around two quarters of a year. At least for the three first quarters of the current year our net sales will follow this rhythm.
The year has begun in a challenging market situation, with the exception of the notably large mill order which we received in February. Construction activity in our customers’ main markets is still at a fairly low level, decreasing the need for our customers to make any major investments in new capacity. Various projects are being moved forward, however in this type of situation their activation is uncertain.
A strong order book provides Raute with the keys to a distinctly positive result and the chance to focus our efforts on the implementation of our strategy and on development projects which will guarantee us a better position to meet the challenges of the changing markets and, on the other hand, the opportunities presented by the improving markets when the global economy regains its stability.
RAUTE CORPORATION – INTERIM REPORT JANUARY 1–MARCH 31, 2012
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.
Significant uncertainty is still associated with the development of the global economy and financial markets due to the hazards of growing debt among some European countries and in the United States. For Raute’s customer industries, the market situation has continued to be uncertain in a number of market areas.
Demand for wood products technology and technology services
The plywood industry’s upgrade investments to ensure quality and cost competitiveness as well as maintain market shares have remained at a reasonable level during the early part of the year.
Several large projects encompassing single production lines and mill-scale deliveries under planning and negotiation are pending. Customers will decide on and realize these projects only once they are more confident that demand has recovered permanently and once financing for the projects can be arranged.
ORDER INTAKE AND ORDER BOOK
Raute serves the wood products industry with a full-service concept based on service which encompasses the entire life-cycle of the delivered equipment. Raute’s business consists of project deliveries and technology services. Project deliveries comprise complete production machinery for new mills, production lines and individual machines and equipment. Additionally, Raute’s full-service concept includes comprehensive technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations as well as consulting, training and reconditioned machinery.
The order intake during the first quarter was at a very high level totaling EUR 61 million (MEUR 29). 83 percent of orders received came from South America (7%), 8 percent from Russia (61%), 5 percent from Europe (26%), 2 percent from North America (5%) and 2 percent from the Asia-Pacific area (1%).
In February Raute received orders equaling more than EUR 50 million for the machinery and equipment for a plywood mill for Paneles Arauco S.A. in Chile. The machinery and equipment will be delivered mainly during the latter part of 2012 for the rebuilding of the Nueva Aldea plywood mill which burned down at the beginning of January.
Technology services accounted for EUR 5 million (MEUR 7) of the order intake.
During the reporting period Raute Corporation signed a long-term contract with UPM Plywood for the proactive maintenance and spare parts services for UPM Plywood’s Finnish mills in Pellos, Jyväskylä, Savonlinna, Joensuu and Kalso, as well as the Chudovo mill in Russia and Otepää mill in Estonia. Based on the contract Raute will take on the responsibility for some of the proactive maintenance inspections and scheduled maintenance programs performed at specified production lines at UPM’s plywood mills.
The order book grew during the reporting period by EUR 46 million, amounting to EUR 82 million at the end of the period (MEUR 48). More than EUR 15 million of the order book is estimated to be entered as income in 2013.
COMPETITIVE POSITION
Raute’s competitive position is good. Raute’s solutions help customers in securing their ability to deliver and provide service 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. 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 15.1 million (MEUR 14.6), up 3 percent on the first quarter of the previous year.
Europe’s share of total net sales during the reporting period was 33 percent (33%), Russia’s 23 percent (20%), South America’s 26 percent (6%), North America’s 13 percent (13%), and Asia-Pacific’s 4 percent (28%).
RESULT AND PROFITABILITY
Operating loss was EUR 0.5 million negative (MEUR 1.4 negative) and accounted for -4 percent (-10%) of net sales.
The first-quarter result was negative due to low net sales. The three significant new orders received in November–December 2011 and in February 2012 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 0.5 million negative (MEUR 1.6 negative) and the result EUR 0.5 million negative (MEUR 1.3 negative). Earnings per share (undiluted) were EUR -0.12 (EUR -0.32).
CASH FLOW AND BALANCE SHEET
The Group’s financial position is good. At the end of the reporting period, gearing was -88 percent (-47%) and equity ratio 46 percent (52%). 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 34.4 million (MEUR 23.0) at the end of the reporting period. Operating cash flow was EUR 9.3 million positive (MEUR +1.4). Cash flow from investment activities was EUR 0.5 million negative (MEUR -0.2). Cash flow from financing activities was EUR 0 (MEUR -2.1).
Interest-bearing liabilities amounted to EUR 15.3 million (MEUR 12.2) 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 facilities totaling EUR 5 million with a Nordic bank.
EVENTS DURING THE REPORTING PERIOD
Raute Corporation published stock exchange releases on the following events:
February 10, 2012 Raute received orders valued at over EUR 50 million from Chile.
DEVELOPMENT OF OPERATIONS
Raute Corporation outsourced its warehouse and other internal logistics operations located at Nastola to ISS Palvelut Oy starting on April 1, 2012. The objective of the outsourcing is to improve the efficiency and flexibility of warehouse and internal logistics operations. The outsourcing was carried out as a transfer of an undertaking, in connection with which eight employees from warehouse and transport operations were transferred to ISS Palvelut Oy’s employment on their pre-existing terms and conditions.
RESEARCH AND DEVELOPMENT COSTS AND CAPITAL EXPENDITURE
Raute’s goal is to be the leading technology supplier in its field, and to invest strongly in continuous research and development, particularly in plywood and LVL manufacturing technology and the supporting automation and instrumentation applications, especially machine vision. Research and development costs in the reporting period totaled EUR 0.6 million (MEUR 0.4) and accounted for 3.7 percent (2.7%) of net sales.
Investments totaled EUR 1.2 million (MEUR 0.2) during the reporting period. The majority of the investments were related to technology acquisitions and product development.
PERSONNEL
The Group’s headcount at the end of the reporting period was 469 (476). Group companies outside Finland accounted for 24 percent (27%) of employees.
Converted to full-time employees (“effective headcount”), the average number of employees was 458 (452).
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 transferee 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 34.6 million (MEUR 40.6), with series K shares valued at the closing price of series A shares, EUR 8.64 (EUR 10.15), on March 31, 2012.
SHAREHOLDERS
The number of shareholders totaled 1,667 at the beginning of the year and 1,675 at the end of the reporting period. Series K shares are held by 49 private individuals (52). The management (Board of Directors, President and CEO and Presidents of the subsidiaries) held 7.2 percent (7.2%) of the company shares and 13.9 percent (13.2%) of the votes. Nominee-registered shares accounted for 1.5 percent (2.1%) of shares.
No flagging notifications were given to the company during the reporting period.
CORPORATE GOVERNANCE
Raute Corporation complies with the Finnish Corporate Governance Code 2010 for listed companies issued by the Securities Market Association on June 15, 2010. Raute Corporation’s Corporate Governance Statement 2011 has been drawn up separately from the Board of Directors’ report and was published on the company’s website.
Raute deviates from the Code’s recommendation 22 on appointing members to the Appointments Committee in that one member to the Committee is elected from outside the Board of Directors, as per the company’s Administrative Instructions, from among the representatives of major shareholders who have significant voting rights. The Board views this exception as justified, taking into consideration the company’s ownership structure and the possibility to consider the expectations of major shareholders as early as in the preparation phase of selecting members of the Board of Directors.
Raute deviates from recommendation 9 on the number, composition and competence of the directors in that the company does not have both genders represented on the Board. The shareholders proposed, and the Annual General Meeting elected on April 16, 2012 a group of persons consisting of men as Board members.
EVENTS AFTER THE REPORTING PERIOD
Annual General Meeting 2012
Raute Corporation’s Annual General Meeting was held on April 16, 2012. The Annual General Meeting adopted the financial statements for 2011, granted discharge from liability to those accountable and decided to distribute a dividend of 0.30 euro 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 2013. Mr. Erkki Pehu-Lehtonen was elected Chairman of the Board, Mr. Mika Mustakallio Vice-Chairman and Mr. Joni Bask, Mr. Risto Hautamäki, Mr. Ilpo Helander and Mr. Pekka Suominen 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 continue to be EUR 40,000 and to the Vice-Chairman of the Board and Board members EUR 20,000 for the term of office and that the Board members’ traveling expenses will be compensated in accordance with the company’s travel policy. The auditors’ remuneration will be paid on the basis of reasonable invoicing.
The Annual General Meeting decided to amend Article 12 of the Articles of Association so that the Annual General Meeting is convened through a stock exchange release. The Annual General Meeting also authorized the Board of Directors to decide on the repurchase of the company’s series A shares with assets from the company’s non-restricted equity and a directed issue of a maximum of 400,000 of these shares. In addition the Annual General Meeting decided to decrease the share premium fund as shown in the Company’s balance sheet on December 31, 2011 by transferring all of the assets of EUR 6.5 million in the share premium fund into the invested non-restricted equity fund.
More detailed information on the decisions of the Annual General Meeting can be found in the stock exchange release issued on April 16, 2012.
Dividends for the 2011 financial year
The Annual General Meeting held on April 16, 2012 decided to pay a dividend of EUR 0.30 per share for the financial year 2011. The total amount of dividends is EUR 1.2 million, series A shares accounting for EUR 904,079.10 (EUR 904,079.10) and series K shares for EUR 297,348.30 (EUR 297,348.30). The dividend payment date was April 26, 2012.
Board of Directors and Board Committees
The Board of Directors elected by Raute Corporation’s Annual General Meeting on April 16, 2012 has held an organizing meeting.
Based on the evaluation of independence, Chairman Erkki Pehu-Lehtonen and members Joni Bask, Risto Hautamäki, Ilpo Helander, Mika Mustakallio, and Pekka Suominen are independent of the company. The Chairman of the Board (Mr. Erkki Pehu-Lehtonen) and two Board members (Mr. Ilpo Helander and Mr. Risto Hautamäki) are independent of major shareholders.
Raute Corporation’s Board of Directors has an Appointments Committee and a Working Committee. Mr. Erkki Pehu-Lehtonen is Chairman of the Appointments Committee, and Mr. Mika Mustakallio and Mr. Ville Korhonen – chosen from among the representatives of major shareholders – act as its members. The Chairman of the Working Committee is Mr. Erkki Pehu-Lehtonen and its members are Mr. Mika Mustakallio and Mr. Risto Hautamäki. The Audit Committee’s tasks are handled by the Board of Directors.
BUSINESS RISKS
Risks in the near term continue to be driven by the global economic situation and the uncertainty concerning its development. During the reporting period, there have been no essential changes in the business risks described in the 2011 Board of Directors’ report and financial statements. The most significant risks for Raute in the near term are related to the development of demand and the order book after the delivery of the present strong order book has taken place.
OUTLOOK FOR 2012
Raute’s business operations are characterized by the sensitivity of investment demand to cyclical fluctuations in the global economy and the financial markets.
Significant uncertainty is still associated with the development of the global economy and financial markets due to the hazards of growing debt among some European countries and in the United States. The market situation for Raute’s customer industries is expected to remain uncertain.
However, upgrade investments in the plywood industry to ensure quality and cost competitiveness and maintain market shares will 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. The implementation and timing of these projects 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.
Due to a strong order book and projects in the negotiation phase, net sales in 2012 will increase significantly on the comparison year and the operating profit will be clearly positive.
TABLES SECTION OF THE INTERIM REPORT
| CONSOLIDATED STATEMENT OF | Note | 1.1.–31.3. | 1.1.–31.3. | 1.1.–31.3. | 1.1.–31.3. | 1.1.–31.12. |
| COMPREHENSIVE INCOME (EUR 1 000) | 2012 | 2011 | 2012 | 2011 | 2011 | |
| NET SALES | 3,4,5 | 15 109 | 14 627 | 15 109 | 14 627 | 74 323 |
| Change in inventories of finished goods and work in progress | 464 | 95 | 464 | 95 | -184 | |
| Other operating income | 46 | 32 | 46 | 32 | 168 | |
| Materials and services | -6 806 | -7 067 | -6 806 | -7 067 | -39 404 | |
| Employee benefits expense | 12 | -6 635 | -6 047 | -6 635 | -6 047 | -24 019 |
| Depreciation and amortization | -501 | -542 | -501 | -542 | -2 128 | |
| Other operating expenses | -2 227 | -2 540 | -2 227 | -2 540 | -9 494 | |
| Total operating expenses | -16 168 | -16 196 | -16 168 | -16 196 | -75 045 | |
| OPERATING PROFIT (LOSS) | -549 | -1 442 | -549 | -1 442 | -738 | |
| % of net sales | -4 | -10 | -4 | -10 | -1 | |
| Financing income | 208 | 211 | 208 | 211 | 705 | |
| Financing expenses | -195 | -318 | -195 | -318 | -1 093 | |
| PROFIT (LOSS) BEFORE TAX | -536 | -1 550 | -536 | -1 550 | -1 126 | |
| % of net sales | -4 | -11 | -4 | -11 | -2 | |
| Income taxes | 72 | 285 | 72 | 285 | 30 | |
| PROFIT (LOSS) FOR THE PERIOD | -464 | -1 265 | -464 | -1 265 | -1 095 | |
| % of net sales | -3 | -9 | -3 | -9 | -1 | |
| Other comprehensive income items: | ||||||
| Exchange differences on translating foreign operations | 13 | -15 | 13 | -15 | 23 | |
| Cash flow hedging | - | - | - | - | 19 | |
| Income tax related to cash flow hedges | - | - | - | - | -5 | |
| Comprehensive income items for | ||||||
| the period, net of tax | 13 | -15 | 13 | -15 | 37 | |
| COMPREHENSIVE PROFIT (LOSS) FOR THE PERIOD | -451 | -1 280 | -451 | -1 280 | -1 058 | |
| Profit (loss) for the period attributable to | ||||||
| Equity holders of the Parent company | -464 | -1 265 | -464 | -1 265 | -1 095 | |
| Comprehensive profit (loss) for the period attributable to | ||||||
| Equity holders of the Parent company | -451 | -1 280 | -451 | -1 280 | -1 058 | |
| Earnings per share for profit (loss) attributable | ||||||
| to Equity holders of the Parent company, EUR | ||||||
| Undiluted earnings per share | -0,12 | -0,32 | -0,12 | -0,32 | -0,27 | |
| Diluted earnings per share | -0,12 | -0,32 | -0,12 | -0,32 | -0,27 | |
| 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 | 4 005 | 4 014 | 4 005 | 4 014 | 4 005 | |
| CONSOLIDATED BALANCE SHEET | Note | 31.3. | 31.3. | 31.12. | |
| (EUR 1 000) | 2012 | 2011 | 2011 | ||
| ASSETS | |||||
| Non-current assets | |||||
| Intangible assets | 8 | 2 152 | 1 188 | 1 433 | |
| Property, plant and equipment | 8 | 8 211 | 8 657 | 8 226 | |
| Other financial assets | 789 | 497 | 789 | ||
| Accounts receivables and other receivables | 549 | 729 | 549 | ||
| Deferred tax assets | 1 699 | 1 801 | 1 601 | ||
| NON-CURRENT ASSETS | 13 401 | 12 871 | 12 598 | ||
| Current assets | |||||
| Inventories | 5 903 | 5 238 | 5 059 | ||
| Accounts receivables and other receivables | 5 | 11 760 | 13 602 | 9 298 | |
| Income tax receivable | 15 | - | 37 | ||
| Cash and cash equivalents | 34 433 | 23 030 | 25 674 | ||
| CURRENT ASSETS | 52 110 | 41 870 | 40 067 | ||
| ASSETS | 65 510 | 54 742 | 52 666 | ||
| EQUITY | |||||
| Equity attributable to Equity holders of the Parent company | |||||
| Share capital | 8 010 | 8 010 | 8 010 | ||
| Share premium account | 6 498 | 6 498 | 6 498 | ||
| Fair value reserve and other reserves | 232 | 55 | 187 | ||
| Exchange differences | 36 | 0 | 23 | ||
| Retained earnings | 7 351 | 9 647 | 8 447 | ||
| Profit (loss) for the period | -464 | -1 265 | -1 095 | ||
| Share of shareholders' equity that belongs to the owners of the Parent company | 21 663 | 22 945 | 22 069 | ||
| SHAREHOLDERS' EQUITY | 21 663 | 22 945 | 22 069 | ||
| NON-CURRENT LIABILITIES | |||||
| Non-current provisions | 96 | 22 | 123 | ||
| Non-current interest-bearing liabilities | 9 | 11 017 | 9 923 | 10 937 | |
| Pension obligations | 96 | 0 | 0 | ||
| NON-CURRENT LIABILITIES | 11 209 | 9 945 | 11 060 | ||
| CURRENT LIABILITIES | |||||
| Current provisions | 682 | 616 | 697 | ||
| Pension obligations | 0 | 93 | 98 | ||
| Current interest-bearing liabilities | 9 | 4 340 | 2 315 | 4 340 | |
| Current advances received | 5 | 18 237 | 10 985 | 5 589 | |
| Income tax liability | 10 | - | 416 | ||
| Trade payables and other liabilities | 9 369 | 7 842 | 8 399 | ||
| CURRENT LIABILITIES | 32 638 | 21 851 | 19 537 | ||
| TOTAL LIABILITIES | 43 847 | 31 796 | 30 597 | ||
| EQUITY AND LIABILITIES | 65 510 | 54 742 | 52 666 | ||
| CONSOLIDATED STATEMENT OF CASH | 31.3. | 31.3. | 31.12. | ||
| FLOWS (EUR 1 000) | 2012 | 2011 | 2011 | ||
| CASH FLOW FROM OPERATING ACTIVITIES | |||||
| Cash receipts from customers | 27 098 | 19 101 | 64 268 | ||
| Other operating income | 46 | 30 | 168 | ||
| Cash paid to suppliers and employees | -17 474 | -17 749 | -62 322 | ||
| Cash flow before financial items and taxes | 9 670 | 1 382 | 2 113 | ||
| Interest paid from operating activities | -23 | -45 | -163 | ||
| Dividends received from operating activities | 96 | 22 | 108 | ||
| Interest received from operating activities | 132 | 111 | 357 | ||
| Other financing items from operating activities | -189 | -42 | -183 | ||
| Income taxes paid from operating activities | -413 | 0 | 298 | ||
| NET CASH FLOW FROM OPERATING ACTIVITIES (A) | 9 273 | 1 428 | 2 531 | ||
| CASH FLOW FROM INVESTING ACTIVITIES | |||||
| Purchase of property, plant and equipment and intagible assets | -559 | -225 | -1 589 | ||
| Proceeds from sale of property, plant and equipment and intangible assets | 22 | 20 | 133 | ||
| Purchase of other investments | - | - | -293 | ||
| NET CASH FLOW FROM INVESTING ACTIVITIES (B) | -538 | -205 | -1 748 | ||
| CASH FLOW FROM FINANCING ACTIVITIES | |||||
| Decrease of non-current and current receivables | - | - | 1 000 | ||
| Increase of current borrowings | - | - | 163 | ||
| Repayments of current borrowings | - | -115 | -115 | ||
| Increase of non-current borrowings | - | 6 000 | 11 000 | ||
| Repayments of non-current borrowings | - | -8 000 | -10 000 | ||
| Dividends paid | - | - | -1 201 | ||
| NET CASH FLOW FROM FINANCING ACTIVITIES (C) | - | -2 116 | 846 | ||
| NET CHANGE IN CASH AND CASH EQUIVALENTS (A+B+C) | 8 735 | -893 | 1 629 | ||
| increase (+)/decrease (-) | |||||
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | 25 674 | 24 090 | 24 090 | ||
| NET CHANGE IN CASH AND CASH EQUIVALENTS | 8 735 | -893 | 1 629 | ||
| EFFECTS OF EXCHANGE RATE CHANGES ON CASH | 23 | -167 | -45 | ||
| CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD* | 34 433 | 23 030 | 25 674 | ||
| CASH AND CASH EQUIVALENTS IN THE BALANCE | |||||
| SHEET AT THE END OF THE PERIOD | |||||
| Cash and cash equivalents | 34 433 | 23 030 | 25 674 | ||
| TOTAL | 34 433 | 23 030 | 25 674 | ||
| *Cash and cash equivalents comprise assets at fair value through profit and loss, as well as cash | |||||
| and bank receivables, which will be due within the following three months' period. | |||||
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY | ||||||
| Share | Share | Other | Exchange | Retained | ||
| (EUR 1 000) | capital | premium | reserves | rate diff. | earnings | TOTAL |
| EQUITY at Jan. 1, 2012 | 8 010 | 6 498 | 187 | 23 | 7 351 | 22 069 |
| Comprehensive profit (loss) for the period | ||||||
| Profit (loss) for the period | - | - | - | - | -464 | -464 |
| Other comprehensive income items: | 0 | |||||
| Exchange differences on translating foreign operations | - | - | - | 13 | 13 | |
| Cash flow hedging, net of tax | - | - | - | - | - | - |
| Total comprehensive profit (loss) for the period | 0 | 0 | 0 | 13 | -464 | -451 |
| Transactions with owners | ||||||
| Equity-settled share-based transactions | - | - | 45 | - | - | 45 |
| Dividend paid | - | - | - | - | - | - |
| EQUITY at March 31, 2012 | 8 010 | 6 498 | 232 | 36 | 6 887 | 21 663 |
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY | ||||||
| Share | Share | Other | Exchange | Retained | ||
| (EUR 1 000) | capital | premium | reserves | rate diff. | earnings | TOTAL |
| EQUITY at Jan. 1, 2011 | 8 010 | 6 498 | 36 | 35 | 9 648 | 24 227 |
| Comprehensive profit (loss) for the period | ||||||
| Profit (loss) for the period | - | - | - | - | -1 265 | -1 265 |
| Other comprehensive income items: | ||||||
| Exchange differences on translating foreign operations | - | - | - | -35 | - | -35 |
| Cash flow hedging, net of tax | - | - | - | - | - | - |
| Total comprehensive profit (loss) for the period | 0 | 0 | 0 | -35 | -1 265 | -1 301 |
| Transactions with owners | ||||||
| Equity-settled share-based transactions | - | - | 19 | - | - | 19 |
| Dividend paid | - | - | - | - | - | - |
| EQUITY at March 31, 2011 | 8 010 | 6 498 | 55 | 0 | 8 383 | 22 945 |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | ||||||
| 1. General information | ||||||
| Raute Group 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). Raute's technology offering | ||||||
| covers machinery and equipment for the entire production process. Raute’s full-service concept is based on product | ||||||
| life-cycle management. In addition to a broad range of machines and equipment, our solutions cover technology services | ||||||
| ranging from spare parts deliveries to regular maintenance and equipment modernizations. Raute's head office is | ||||||
| located in Nastola, Finland. Its other production plants are in the Vancouver area in Canada, in the Shanghai area in China, | ||||||
| and in Kajaani, Finland. The company’s sales network has a global reach. | ||||||
| Raute Group’s Parent company 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 and at the head office of the Parent company, | ||||||
| Rautetie 2, FI-15550 Nastola, Finland. | ||||||
| Raute Corporation’s Board of Directors has on May 4, 2012 reviewed the Interim financial report for January 1 - | ||||||
| March 31, 2012, and approved it to be published in compliance with this release. | ||||||
| 2. Accounting principles | ||||||
| Raute Corporation’s Interim financial report January 1 – March 31, 2012 has been prepared in accordance with standard | ||||||
| IAS 34 Interim Financial Reporting. The Interim financial report does not contain full notes and other information presented | ||||||
| in the financial statements, and therefore the Interim financial report should be read in conjuction with the Financial | ||||||
| statements published for 2011. | ||||||
| Raute Corporation’s Interim financial report for January 1 – March 31, 2012 has been prepared in accordance | ||||||
| with international financial statement standards (International Financial Reporting Standards, IFRS) as adopted by the | ||||||
| European Union, and preparations have complied with the IAS and IFRS standards, as well as SIC and IFRIC interpretations, | ||||||
| effective on March 31, 2012. The notes to the Interim financial statements also comply with Finnish accounting | ||||||
| legislation. The presented Interim financial report figures have not been audited. | ||||||
| The Interim financial report has been prepared according to the same accounting principles as those applied in the Annual | ||||||
| financial statements for 2011 except for the certain new or revised standards, interpretations and amendments | ||||||
| which the Group has applied as of January 1, 2012. The impact of the new and revised standards have been presented in the | ||||||
| Annual financial statements for 2011. The adoption of these standards have not had an impact on the 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 financial statement tables, the sums of figures may deviate from the sum total | ||||||
| presented in the table. Figures in parentheses refer to the corresponding figures in the comparison period. | ||||||
| The preparation of Interim financial report according to IFRS standards requires management to use estimates and | ||||||
| assumptions in the process of applying the accounting principles. Because estimates and assumptions are based on | ||||||
| management's best knowledge at the reporting date, they comprise risks and uncertainties. The actual results may therefore | ||||||
| differ from these estimates. | ||||||
| 3. Segment information | ||||||
| Operational segment | ||||||
| Continuing operations of Raute Group belong to the wood products technology segment. | ||||||
| Due to Raute's business model, operational nature and administrative structure, the operational segment to be reported as | ||||||
| wood products technology segment is comprised of the whole Group and the information on the segment is consistent with | ||||||
| that of the Group. Segment reporting follows the principles of presentation of the consolidated financal statements. | ||||||
| 31.3. | 31.3. | 31.12. | ||||
| Wood products technology | 2012 | 2011 | 2011 | |||
| Net sales | 15 109 | 14 627 | 74 323 | |||
| Operating profit (loss) | -549 | -1 442 | -738 | |||
| Assets | 65 510 | 54 742 | 52 666 | |||
| Liabilities | 43 847 | 31 796 | 30 597 | |||
| Capital expenditure | 1 216 | 226 | 1 885 | |||
| Assets of the wood products technology | 31.3. | 31.3. | 31.12. | |||
| segment by geographical location | 2012 | % | 2011 | % | 2011 | % |
| Finland | 58 693 | 90 | 45 729 | 84 | 46 196 | 88 |
| North America | 3 402 | 5 | 3 357 | 6 | 3 305 | 6 |
| China | 1 609 | 2 | 4 018 | 7 | 1 550 | 3 |
| Russia | 1 436 | 2 | 1 319 | 2 | 1 302 | 2 |
| South America | 196 | 0 | 143 | 0 | 170 | 0 |
| Others | 173 | 0 | 176 | 0 | 143 | 0 |
| TOTAL | 65 510 | 100 | 54 742 | 100 | 52 666 | 100 |
| Capital expenditure of the wood products | 31.3. | 31.3. | 31.12. | |||
| technology segment by geographical location | 2012 | % | 2011 | % | 2011 | % |
| Finland | 1 203 | 99 | 220 | 97 | 1 824 | 97 |
| North America | 6 | 0 | 2 | 1 | 22 | 1 |
| China | 3 | 0 | 3 | 1 | 36 | 2 |
| Russia | 1 | 0 | - | - | - | - |
| South America | 1 | 0 | - | - | 2 | 0 |
| Others | 1 | 0 | - | - | 1 | 0 |
| TOTAL | 1 216 | 100 | 226 | 100 | 1 885 | 100 |
| 4. Net sales | ||||||
| The main part of the net sales is comprised of project deliveries related to wood products technology and modernizations in | ||||||
| technology services, which are treated as long-term projects. The rest of the net sales is comprised of technology services | ||||||
| provided to the wood products industry such as spare parts and maintenance services as well as services provided to the | ||||||
| development of customers' business. | ||||||
| Project deliveries and modernization related to technology services include both product and service sales, making it impossible | ||||||
| to give a reliable presentation of the breakdown of the Group's net sales into purely product and service sales. | ||||||
| Large delivery projects can temporarily increase the shares of various customers of the Group’s net sales to more than ten percent. | ||||||
| At the end of the period, the Group had three (3) customers, whose share of the Group's net sales temporarily exceeded ten | ||||||
| percent. | ||||||
| Net sales | 1.1.-31.3. | 1.1.–31.3. | 1.1.–31.12. | |||
| by market area | 2012 | % | 2011 | % | 2011 | % |
| South America | 4 002 | 26 | 958 | 6 | 4 301 | 6 |
| Rest of Europe | 3 692 | 24 | 2 057 | 14 | 10 593 | 14 |
| Russia | 3 498 | 23 | 2 883 | 20 | 26 026 | 35 |
| North America | 2 019 | 13 | 1 836 | 13 | 6 090 | 8 |
| Finland | 1 251 | 8 | 2 759 | 19 | 8 891 | 12 |
| Asia-Pacific | 600 | 4 | 4 089 | 28 | 18 299 | 25 |
| Others | 47 | 0 | 46 | 0 | 124 | 0 |
| TOTAL | 15 109 | 100 | 14 627 | 100 | 74 323 | 100 |
| 5. Long-term projects | 31.3. | 31.3. | 31.12. | ||
| 2012 | 2011 | 2011 | |||
| Net sales | |||||
| Net sales by percentage of completion | 12 053 | 11 630 | 58 760 | ||
| Other net sales | 3 056 | 2 997 | 15 563 | ||
| TOTAL | 15 109 | 14 627 | 74 323 | ||
| Project revenues entered as income from currently undelivered | |||||
| long-term projects recognized by percentage of completion | 51 273 | 48 898 | 45 250 | ||
| Amount of long-term project revenues not yet entered as income | |||||
| (order book) | 80 651 | 46 866 | 35 034 | ||
| Projects for which the value by percentage of completion exceeds | |||||
| advance payments invoiced | |||||
| - aggregate amount of costs incurred and recognized profits less | |||||
| recognized losses | 18 285 | 28 210 | 16 805 | ||
| - advance payments received | 13 703 | 21 923 | 13 431 | ||
| Gross amount due from customers | 4 582 | 6 287 | 3 374 | ||
| Projects for which advance payments invoiced exceed the value by | |||||
| percentage of completion | |||||
| - aggregate amount of costs incurred and recognized profits less | |||||
| recognized losses | 32 988 | 20 687 | 28 445 | ||
| - advance payments received | 50 487 | 29 337 | 33 704 | ||
| Gross amount due to customers | 17 499 | 8 650 | 5 259 | ||
| Specification of combined asset and liability items | |||||
| Advance payments paid | 386 | 332 | 101 | ||
| Advance payments received included in inventories in the balance sheet | 386 | 332 | 101 | ||
| Advance payments in the balance sheet | 18 237 | 10 985 | 5 589 | ||
| 6. Number of personnel, persons | 31.3. | 31.3. | 31.12. | ||
| 2012 | 2011 | 2011 | |||
| Effective, on average | 458 | 452 | 457 | ||
| In books, on average | 468 | 483 | 475 | ||
| In books, at the end of period | 469 | 476 | 464 | ||
| - of which personnel working abroad | 112 | 128 | 117 | ||
| 7. Research and development costs | 31.3. | 31.3. | 31.12. | ||
| 2012 | 2011 | 2011 | |||
| Research and development costs for the period | 565 | 402 | 2020 | ||
| Amortization of previously capitalized development costs | 40 | 88 | 262 | ||
| Development costs recognized as an asset in the balance sheet | -70 | - | -209 | ||
| Research and development costs entered as expenses for the period | 535 | 490 | 2 072 | ||
| 8. Changes in Intangible assets and in Property, | 31.3. | 31.3. | 31.12. | ||
| plant and equipment | 2012 | 2011 | 2011 | ||
| Intangible assets | |||||
| Carrying amount at the beginning of the period | 12 448 | 11 759 | 11 759 | ||
| Exchange rate differences | 1 | -13 | 16 | ||
| Additions | 839 | 30 | 609 | ||
| Reclassifications between items | -679 | - | 63 | ||
| Carrying amount at the end of the period | 12 609 | 11 775 | 12 447 | ||
| Accumulated depreciation and amortization at the beginning of the period | -11 015 | -10 418 | -10 420 | ||
| Exchange rate differences | 0 | 8 | -8 | ||
| Reclassifications between items | 679 | - | 18 | ||
| Depreciation and amortization for the period | -120 | -178 | -604 | ||
| Accumulated depreciation and amortization at the end of the period | -10 456 | -10 587 | -11 013 | ||
| Book value of Intangible assets, at the beginning of the period | 1 433 | 1 341 | 1 341 | ||
| Book value of Intangible assets, at the end of the period | 2 152 | 1 188 | 1 433 | ||
| Property, plant and equipment | |||||
| Carrying amount at the beginning of the period | 44 463 | 43 714 | 43 714 | ||
| Exchange rate differences | -79 | -419 | 117 | ||
| Additions | 377 | 195 | 983 | ||
| Disposals | -7 | -18 | -67 | ||
| Reclassifications between items | -3 686 | - | -285 | ||
| Carrying amount at the end of the period | 41 068 | 43 472 | 44 463 | ||
| Accumulated depreciation and amortization at the beginning of the period | -36 236 | -34 800 | -34 801 | ||
| Exchange rate differences | 74 | 356 | -96 | ||
| Reclassifications between items | 3 685 | - | 202 | ||
| Depreciation and amortization for the period | -381 | -371 | -1 541 | ||
| Accumulated depreciation and amortization at the end of the period | -32 857 | -34 815 | -36 236 | ||
| Book value of Property, plant and equipment, at the beginning | |||||
| of the period | 8 227 | 8 913 | 8 913 | ||
| Book value of Property, plant and equipment, at the end | |||||
| of the period | 8 211 | 8 656 | 8 226 | ||
| 9. Interest-bearing liabilities | 31.3. | 31.3. | 31.12. | ||
| 2012 | 2011 | 2011 | |||
| Non-current interest-bearing liabilities recognized at amortized cost | 11 017 | 9 921 | 10 937 | ||
| Current interest-bearing liabilities | 4 340 | 2 318 | 4 340 | ||
| TOTAL | 15 357 | 12 238 | 15 277 | ||
| Maturities of the interest-bearing financial liabilities | |||||
| Financial liability | Current | Non-current | Total | ||
| Pension loans (TyEL) | 2 000 | 2 000 | 4 000 | ||
| Loans from financial institutions | 2 240 | 9 018 | 11 258 | ||
| Other loans | 100 | - | 100 | ||
| Total | 4 340 | 11 017 | 15 357 | ||
| 10. Pledged assets and contingent liabilities | 31.3. | 31.3. | 31.12. | |||
| 2012 | 2011 | 2011 | ||||
| Pledged assets on behalf of the Parent company | ||||||
| Loans from financial institutions | 11 017 | 5 921 | 11 177 | |||
| Business mortgages | 6 700 | 4 700 | 6 700 | |||
| Pension loans (TyEL) | 4 000 | 6 000 | 4 000 | |||
| Business mortgages | 1 200 | 1 800 | 1 200 | |||
| Credit insurance agreements | 2 800 | 4 200 | 2 800 | |||
| Other loans | 100 | 100 | 100 | |||
| Real estate mortgages | 101 | 101 | 101 | |||
| Mortgage agreements on behalf of subsidiaries | ||||||
| Loans from financial institutions | 240 | 218 | 240 | |||
| Business mortgages | 240 | 200 | 240 | |||
| Commercial bank guarantees on behalf of the Parent company | ||||||
| and subsidiaries | 21 076 | 12 475 | 18 472 | |||
| Other own obligations | ||||||
| Within one year | 548 | 552 | 546 | |||
| After the period of more than one and less than five years | 1 314 | 1 121 | 1 358 | |||
| More than five years | 503 | 668 | 523 | |||
| Total | 2 365 | 2 340 | 2 426 | |||
| Loans and guarantees on behalf of the related party | ||||||
| No loans are granted to the company's management. On March 31, 2012, the Parent Company Raute Corporation had | ||||||
| loan receivables from its subsidiary Raute Service LLC EUR 355 thousand (EUR 355 thousand) and from Raute Canada | ||||||
| Ltd. EUR 1 502 thousand (EUR 363 thousand). Raute Corporation had a EUR 100 thousand (EUR 100 thousand) liability | ||||||
| to Raute Sickness Fund. | ||||||
| No pledges have been given or other commitments made on behalf of the company's management and shareholders. | ||||||
| 11. Currency derivatives and hedging instruments | 31.3. | 31.3. | 31.12. | |||
| 2012 | 2011 | 2011 | ||||
| Currency derivatives are used for hedging purposes. | ||||||
| Nominal values of forward contracts in foreign currency | ||||||
| Economic hedging | ||||||
| - Related to financing | 1 503 | 6 284 | 1 211 | |||
| - Related to hedging of net sales | 460 | 661 | 637 | |||
| Fair values of forward contracts in foreign currency | ||||||
| Economic hedging | ||||||
| - Related to financing | 10 | -75 | -32 | |||
| - Related to the hedging of net sales | 12 | -39 | 4 | |||
| Interest rate and currency swap agreements | ||||||
| - Nominal value | 6 093 | 5 921 | 5 937 | |||
| - Fair value | -250 | -53 | -285 | |||
| 12. Share-based payments | ||||||
| The fair value of the options granted according to the 2010 stock option plan is recognized as an expense in the income | ||||||
| statement during the earning period of the options. An expense of EUR 45 thousand (EUR 19 thousand) was recognized | ||||||
| for the options in the income statement during the period. | ||||||
| 13. Dividend distribution | ||||||
| Raute Corporations's Annual General Meeting decided according to proposal of the Board of Directors to distribute a dividend | ||||||
| of EUR 0,30 per share to be paid for series A and K shares. A total amount of dividends to be paid is EUR 1,201,427.40. | ||||||
| 14. Exchange rates used | ||||||
| 1.1.–31.3. | 1.1.–31.3. | 1.1.–31.12. | ||||
| Income statement, euros | 2012 | 2011 | 2011 | |||
| USD (US dollar) | 1,3110 | 1,3669 | 1,3917 | |||
| CAD (Canadian dollar) | 1,3129 | 1,3478 | 1,3756 | |||
| SGD (Singapore dollar) | 1,6573 | 1,7457 | 1,7491 | |||
| CLP (Chilean peso) | 640,5550 | 658,4032 | 672,0723 | |||
| RUB (Russian rouble) | 39,5477 | 40,0029 | 40,8797 | |||
| CNY (Chinese juan) | 8,2702 | 8,9966 | 8,9958 | |||
| 31.3. | 31.3. | 31.12. | ||||
| Balance sheet, euros | 2012 | 2011 | 2011 | |||
| USD (US dollar) | 1,3356 | 1,4207 | 1,2939 | |||
| CAD (Canadian dollar) | 1,3311 | 1,3785 | 1,3215 | |||
| SGD (Singapore dollar) | 1,6775 | 1,7902 | 1,6819 | |||
| CLP (Chilean peso) | 641,7271 | 671,5218 | 680,1710 | |||
| RUB (Russian rouble) | 39,2950 | 40,285 | 41,7650 | |||
| CNY (Chinese juan) | 8,3326 | 9,1902 | 8,3499 | |||
| FINANCIAL DEVELOPMENT | 31.3. | 31.3. | 31.12. | |||
| 2012 | 2011 | 2011 | ||||
| Change in net sales, % | 3,3 | 40,2 | 18,2 | |||
| Exported portion of net sales, % | 91,7 | 81,1 | 88,0 | |||
| Return on investment (ROI), % | -3,8 | -13,3 | -0,1 | |||
| Return on equity (ROE), % | -8,5 | -21,5 | -4,7 | |||
| Interest-bearing net liabilities, EUR million | -19,1 | -10,8 | -10,4 | |||
| Gearing, % | -88,1 | -47,0 | -47,1 | |||
| Equity ratio, % | 45,8 | 52,4 | 46,9 | |||
| Gross capital expenditure, EUR million | 1,2 | 0,2 | 1,9 | |||
| % of net sales | 8,0 | 1,5 | 2,5 | |||
| Research and development costs, EUR million | 0,6 | 0,4 | 2,0 | |||
| % of net sales | 3,7 | 2,7 | 2,7 | |||
| Order book, EUR million | 82 | 48 | 36 | |||
| Order intake, EUR million | 61 | 29 | 77 | |||
| SHARE-RELATED DATA | 31.3. | 31.3. | 31.12. | ||
| 2012 | 2011 | 2011 | |||
| Earnings per share, (EPS), undiluted, EUR | -0,12 | -0,32 | -0,27 | ||
| Earnings per share, (EPS), diluted, EUR | -0,12 | -0,32 | -0,27 | ||
| Equity to share, EUR | 5,41 | 5,73 | 5,51 | ||
| Dividend per share, EUR | - | - | 0,30 | ||
| Dividend per profit, % | - | - | -109,7 | ||
| Effective dividend return, % | - | - | 4,8 | ||
| Development in share price (series A shares) | |||||
| Lowest share price for the period, EUR | 6,18 | 9,65 | 6,05 | ||
| Highest share price for the period, EUR | 9,24 | 11,55 | 11,55 | ||
| Average share price for the period, EUR | 8,48 | 10,71 | 8,57 | ||
| Share price at the end of the period, EUR | 8,64 | 10,15 | 6,20 | ||
| Market value of capital stock | |||||
| - Series K shares, EUR million* | 8,6 | 10,1 | 6,1 | ||
| - Series A shares, EUR million | 26,0 | 30,6 | 18,7 | ||
| Total, EUR million | 34,6 | 40,6 | 24,8 | ||
| *Series K shares valued at the value of series A shares. | |||||
| Trading of the company's shares (series A shares) | |||||
| Trading of shares, pcs | 90 908 | 88 445 | 522 287 | ||
| Trading of shares, EUR million | 0,8 | 0,9 | 4,3 | ||
| Number of shares | |||||
| - Series K shares, ordinary shares (20 votes/share) | 991 161 | 991 161 | 991 161 | ||
| - Series A shares (1 vote/share) | 3 013 597 | 3 013 597 | 3 013 597 | ||
| Total | 4 004 758 | 4 004 758 | 4 004 758 | ||
| Number of shares, weighted average, 1 000 pcs | 4 005 | 4 005 | 4 005 | ||
| Number of shares diluted, 1 000 pcs | 4 005 | 4 014 | 4 005 | ||
| The number of shareholders | 1 675 | 1 776 | 1 667 | ||
| DEVELOPMENT OF | Q 2 | Q 3 | Q 4 | Q 1 | Rolling | Rolling |
| QUARTERLY RESULTS | 2011 | 2011 | 2011 | 2012 | 1.4.2011 | 1.4.2010 |
| (EUR 1 000) | – | – | ||||
| 31.3.2012 | 31.3.2011 | |||||
| NET SALES | 23 136 | 21 626 | 14 934 | 15 109 | 74 805 | 67 059 |
| Change in inventories of finished goods and work in progress | 723 | 223 | -1 225 | 464 | 185 | 778 |
| Other operating income | 68 | 45 | 23 | 46 | 182 | 4 593 |
| Materials and services | -13 891 | -12 885 | -5 561 | -6 806 | -39 143 | -36 075 |
| Employee benefits expense | -6 137 | -5 397 | -6 437 | -6 635 | -24 606 | -24 126 |
| Depreciation and amortization | -538 | -530 | -518 | -501 | -2 086 | -2 155 |
| Other operating expenses | -2 547 | -2 071 | -2 336 | -2 227 | -9 181 | -8 814 |
| Total operating expenses | -23 113 | -20 883 | -14 853 | -16 168 | -75 017 | -71 170 |
| OPERATING PROFIT (LOSS) | 814 | 1 011 | -1 121 | -549 | 156 | 1 261 |
| % of net sales | 4 | 5 | -8 | -4 | 0 | 2 |
| Financing income | 313 | 242 | -60 | 208 | 702 | 563 |
| Financing expenses | -362 | -403 | -10 | -195 | -969 | -890 |
| PROFIT (LOSS) BEFORE TAX | 764 | 850 | -1 190 | -536 | -112 | 934 |
| % of net sales | 3 | 4 | -8 | -4 | 0 | 1 |
| Income taxes | -244 | -180 | 170 | 72 | -183 | -89 |
| PROFIT (LOSS) FOR THE PERIOD | 520 | 670 | -1 020 | -464 | -294 | 845 |
| % of net sales | 2 | 3 | -7 | -3 | 0 | 1 |
| Attributable to | ||||||
| Equity holders of the Parent company | 520 | 670 | -1 020 | -464 | -294 | 845 |
| Earnings per share for profit (loss) attributable | ||||||
| to Equity holders of the Parent company, EUR | ||||||
| Undiluted earnings per share | 0,13 | 0,17 | -0,25 | -0,12 | -0,07 | 0,21 |
| Diluted earnings per share | 0,13 | 0,17 | -0,25 | -0,12 | -0,07 | 0,21 |
| Shares, 1 000 pcs | ||||||
| Adjusted average number of shares | 4 005 | 4 005 | 4 005 | 4 005 | 4 005 | 4 005 |
| Adjusted average number of shares diluted | 4 012 | 4 005 | 4 005 | 4 005 | 4 005 | 4 014 |
| LARGEST SHAREHOLDERS AT | Number of | Number of | |||
| March 31, 2012 | series K | series A | |||
| shares | shares | Total | |||
| (20 votes | (1 vote | number | |||
| per share) | per share) | of shares | |||
| 1. Sundholm Göran | - | 624 798 | 624 798 | ||
| 2. Mandatum Henkivakuutusosakeyhtiö | - | 181 900 | 181 900 | ||
| 3. Suominen Jussi Matias | 48 000 | 74 759 | 122 759 | ||
| 4. Sijoitusrahasto Alfred Berg Small Cap Finland | - | 121 168 | 121 168 | ||
| 5. Mustakallio Kari Pauli | 60 480 | 56 900 | 117 380 | ||
| 6. Suominen Pekka | 48 000 | 62 429 | 110 429 | ||
| 7. Suominen Tiina Sini-Maria | 48 000 | 62 316 | 110 316 | ||
| 8. Siivonen Osku Pekka | 50 640 | 53 539 | 104 179 | ||
| 9. Kirmo Kaisa Marketta | 50 280 | 41 826 | 92 106 | ||
| 10. Mustakallio Mika Tapani | 56 180 | 29 670 | 85 850 | ||
| 11. Keskiaho Kaija Leena | 33 600 | 51 116 | 84 716 | ||
| 12. Särkijärvi Anna Riitta | 60 480 | 22 009 | 82 489 | ||
| 13. Mustakallio Ulla Sinikka | 47 240 | 30 862 | 78 102 | ||
| 14. Laakkosen Arvopaperi Oy | - | 71 849 | 71 849 | ||
| 15. Relander Harald | - | 65 300 | 65 300 | ||
| 16. Mustakallio Marja Helena | 43 240 | 16 047 | 59 287 | ||
| 17. Sijoitusrahasto Nordea Suomi Small Cap | - | 57 349 | 57 349 | ||
| 18. Särkijärvi Timo | 12 000 | 43 256 | 55 256 | ||
| 19. Särkijärvi-Martinez Anu Riitta | 12 000 | 43 256 | 55 256 | ||
| 20. Kirmo Lasse | 30 000 | 24 110 | 54 110 | ||
| TOTAL | 600 140 | 1 734 459 | 2 334 599 | ||
| Share of total amount of shares, % | 60,5 | 57,6 | 58,3 | ||
| Share of total voting rights, % | 60,5 | 57,6 | 60,2 | ||
| Nominee-registered | - | 58 803 | 58 803 | ||
| Other shareholders | 391 021 | 1 220 335 | 1 611 356 | ||
| TOTAL | 991 161 | 3 013 597 | 4 004 758 | ||
| MANAGEMENT'S SHAREHOLDING | 151 470 | 136 049 | 287 519 | ||
| Share of total amount of shares, % | 15,3 | 4,5 | 7,2 | ||
| Share of total voting rights, % | 15,3 | 4,5 | 13,9 | ||
| RAUTE CORPORATION | ||||||
| Board of Directors | ||||||
| BRIEFING ON MAY 7, 2012 AT 2 P.M.: | ||||||
| A briefing will be organized for analysts, investors and the media on Monday, May 7, 2012 at 2 p.m. at Scandic | ||||||
| Simonkenttä Hotel, Roba cabinet, Simonkatu 9, Helsinki. The interim report will be presented by | ||||||
| Mr. Tapani Kiiski, President and CEO, and Ms. Arja Hakala, CFO. | ||||||
| NEXT INTERIM REPORT: | ||||||
| Raute Corporation’s interim report January 1–June 30, 2012 will be published on Tuesday July 31, 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 spare parts deliveries to regular maintenance | ||||||
| and equipment modernizations. Raute’s head office is located in Nastola, Finland. Its other production plants | ||||||
| are in the Vancouver area in Canada, in the Shanghai area in China, and in Kajaani, Finland. Raute’s net | ||||||
| sales in 2011 were EUR 74.3 million. The Group’s headcount at the end of 2011 was 464. | ||||||
| More information about the company can be found at www.raute.com. | ||||||