RAUTE'S 8 MEUR CONTRACT NOT EFFECTIVE BY THE END OF JUNE
RAUTE CORPORATION STOCK EXCHANGE RELEASE 1 July 2009 at 2.30 p.m.
RAUTE'S 8 MEUR CONTRACT NOT EFFECTIVE BY THE END OF JUNE
Raute Corporation's contract with a Chinese customer to deliver Raute's
machinery to Russia, which was signed and published on 20 May 2009, has not
become effective in the estimated schedule in June, due to a reason not
depending on Raute. Thus, the machinery of a veneer mill worth about EUR 8
million according to this contract is not included in the company's order book
as of 30 June 2009. Both the customer and Raute continue to work towards making
the contract effective.
The market situation in the wood products industry has remained difficult and no
new significant investments have been started. Raute will continue to adapt its
operations to the weak demand and the low order book. Due to the low order book,
weak demand and the postponements of investment decisions relating to mill-scale
projects, Raute's net sales will decline significantly in 2009. Operating profit
will be negative, despite the adaptation
measures taken.
Raute will publish its interim report for January - June 2009 on 4 August 2009.
RAUTE CORPORATION
Tapani Kiiski
President and CEO
FURTHER INFORMATION:
Mr. Tapani Kiiski, President and CEO, mobile +358 400 814 148
Ms. Arja Hakala, CFO, mobile +358 400 710 387
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd, main media, www.raute.com
RAUTE IN BRIEF:
Raute is a technology company serving the wood products industry worldwide. Its
most important customers are the plywood and LVL industries. The company is one
of the world's leading suppliers of mill-scale projects to these customer
industries. The total service concept also includes technology services, with
which Raute supports its customers throughout the entire life cycle of their
investments. Raute's head office and main production plant are in Nastola,
Finland. Its other production plants are in the Vancouver area of Canada, in the
Shanghai area of China, and in Jyväskylä and Kajaani, Finland. Net sales in 2008
were EUR 98.5 million and the number of personnel 573. More information on the
company can be found at www.raute.com.