Posted May 16, 2019
Raute Corporation’s net sales for the 1Q 2019 Euro 41.3 million, increased 17% on the 1Q 2018. Net sales were in line with the scheduling of the order book, as the company said in the press release received by Lesprom Network.
Operating profit was Euro 2.6 million positive and accounted for 6.3% of net sales. Despite the growth in net sales, Raute’s operating profit fell short of the level of the comparison period due to a few exceptional cost items that were recognized during the reporting period and the corresponding positive impact of some items recorded during the comparison period.
The increased market uncertainty was reflected in the volume of new orders received by Raute. Order intake during the 1Q 2019, Euro 32 million, was at a reasonable level. The most significant new order was for the delivery of plywood mill machinery to Russia valued at more than Euro 12 million.
Tapani Kiiski, President and CEO, says: “We started the year with a strong order book. It helped us to achieve high net sales that reflected growth of roughly 17% compared to the same period last year. The number of new orders was at a reasonable level, especially considering that the new orders did not include major mill-scale orders. Despite the growth in net sales, our operating profit fell slightly short of last year’s level. This was due to some exceptional cost items during the period under review that are highlighted further by the positive items that we recorded during the comparison period.”
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.