Raute's profit outlook for 2019 weakened

RAUTE CORPORATION INSIDE INFORMATION JUNE 25, 2019 at 1:00 p.m.

RAUTE'S PROFIT OUTLOOK FOR 2019 WEAKENED

Raute's profit outlook for 2019 has weakened. Net sales are estimated to decline from the record-breaking year 2018. Operating profit is estimated to weaken from the previous, record-high also what becomes to operating profit, year. Previously the company has estimated net sales and operating profit to remain at the level of the preceding year. In 2018, the Group's net sales were EUR 181.0 million and the operating profit was EUR 14.9 million.

Raute's weakened net sales and profit outlook is due to the delays in the schedules of some challenging project deliveries which are in implementation phase and costs related to them, and the postponement from previous estimates of capturing some big orders which are in the negotiation phase.

The potential need for adaptation measures will be estimated later in the summer along with the realization of the orders referred to above.

Several large projects encompassing single production lines and mill-scale deliveries that are in the planning and negotiation phase are pending. The delay in decision-making concerning large projects is expected to result from the schedule changes typical of project business, the increased uncertainty of economy and the situation in the financing market.

Raute Corporation’s half-year report January 1–June 30, 2019 will be published on Wednesday, July 31, 2019.

RAUTE CORPORATION
Tapani Kiiski
President and CEO

FURTHER INFORMATION:
Mr. Tapani Kiiski, President and CEO, Raute Corporation, mobile phone +358 400 814 148
Ms. Tarja Järvinen, Group Vice President, Finance, CFO, Raute Corporation, mobile phone +358 40 658 3562

DISTRIBUTION:
Nasdaq 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, LVL (Laminated Veneer Lumber) and sawn timber. Its technology offering covers the entire production process for veneer, plywood and LVL and special measurement equipment for sawn timber. 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 technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations. Raute’s head office is located in the Nastola area of Lahti, Finland. The company’s other production plants are located in Kajaani, Finland, the Vancouver area of Canada, the Shanghai area of China and in Pullman, Washington, USA. Raute’s net sales in 2018 were EUR 181.0 million. The Group’s headcount at the end of 2018 was 772. More information about the company can be found at www.raute.com.