RAUTE CORPORATION INSIDE INFORMATION APRIL 24, 2020 at 9:30 a.m.
RAUTE'S PROFIT OUTLOOK FOR 2020 WEAKENED
Raute's profit outlook for 2020 has weakened. Net sales are estimated to decline from 2019 and operating profit is estimated to weaken clearly from the year 2019. Previously the company has estimated net sales for 2020 to remain at the same level as in 2019 and operating profit to weaken compared to 2019. In 2019, the Group's net sales were EUR 151.3 million and the operating profit was EUR 8.5 million.
Raute's weakened net sales and profit outlook is due to the impacts of the coronavirus pandemic and preventive measures thereof and also to the increased uncertainty of economy as a consequence of them. It is very difficult to forecast the realization and schedule of the customers’ investment decisions. The risks in the production activities related to the availability of components and the limitations to perform assembly, commissioning and maintenance works at the customers’ mills due to travelling restrictions also result in net sales to decline and result to weaken.
Adaptation to the declined net sales in the production activities of Raute’s units in Finland can be carried out by reducing subcontracting. The need for adaptation measures related to indirect and fixed costs will be considered in the coming weeks.
Raute Corporation’s interim report January 1–March 31, 2020 will be published on Wednesday, April 29, 2020.
RAUTE CORPORATION
Tapani Kiiski
President and CEO
FURTHER INFORMATION:
Mr. Tapani Kiiski, President and CEO, mobile phone +358 400 814 148
Ms. Tarja Järvinen, Group Vice President, Finance, CFO, 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 2019 were EUR 151.3 million. The Group’s headcount at the end of 2019 was 778. More information about the company can be found at www.raute.com.