The new orders included two projects aimed at boosting production capacity in Poland. More than Euro 8 million worth of equipment will be delivered for the first phase of a new softwood plywood mill being built beside the company Paged’s plywood mill in Morag, Poland. An order worth roughly Euro 23 million for machinery and equipment required for producing laminated veneer lumber (LVL) will be delivered to Steico’s future LVL mill in Czarna Woda, Poland.
Operating profit for the 2Q was Euro 0.6 million positive and accounted for +3% of net sales. The profit was Euro 0.5 million positive. Earnings per share were Euro +0.12.
The Group’s profitability reflects the level of net sales.
Tapani Kiiski, President and CEO, said: “In the 2Q 2014, we received orders for two larger projects that had been in the pipeline for some time. After successfully gaining these transactions, we have reason to be satisfied with our order intake.
“Despite the highly publicized weak state of the European economy, Europe clearly remains our most important and largest market this year. The Russian market, traditionally very important for Raute, is still shrouded in uncertainty, due to its weak economic development and to the tense situation caused by the crisis in Ukraine. Projects that have been in the planning phase are still under negotiation in various market areas, and I am confident that our order book will develop favorably even in the latter part of the year. I do not, however, believe that the recent market development is an indication of a real change in the market situation. It’s really about projects that have been in planning for a long time entering the realization phase. It is also worth noting the low number of single, mid-sized, complete machine line projects. Brisk demand for technology services, on the other hand, indicates a high level of production among most of our customers.”
Net sales for the first half of the year totaled Euro 35.3 million, down 18% on the comparison period. The decline resulted from the low order intake at the end of 2013 and at the start of the reporting period, and from the scheduling of the order book.
Of the total net sales for the reporting period, Europe accounted for 43%, South America for 20%, Russia for 17%, North America for 17%, and Asia-Pacific for 3%.
Operating profit for 1H 2014 was Euro 1.3 million negative and accounted for -4% of net sales. The negative operating profit was due to low net sales in the 1Q.
The profit before tax for the reporting period was Euro 1.3 million negative. The profit for the reporting period was Euro 1.1 million negative. Earnings per share (undiluted) were Euro -0.27.
No changes have occurred in Raute’s profit outlook for the whole of 2014. Based on the order book and ongoing negotiations, Raute’s net sales are expected to grow in 2014 and operating profit to improve from 2013.
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).
