Raute Corporation's 2Qnet sales amounted to Euro 24.4 million, compared to Euro 37 million in the 2Q 2019.
The total order intake in the 2Q, Euro 13 million, was low, although adequate considering the market situation and bearing in mind that it did not include major individual new production capacity projects. The measures taken in different market areas to control the global corona pandemic have postponed the progress and decision-making of customers’ projects. Technology services accounted for Euro 7 million of the order intake.
Operating result for the 2Q 2020 was Euro 1 million negative and accounted for -4.2% of net sales. The result was Euro 0.7 million negative, and earnings per share were Euro -0.17.
Tapani Kiiski, President and CEO, said: “Net sales for the first half of the year remained low and the result was negative. The decline in our net sales and the consequent weakened result were expected due to the timing of the order book. The impacts of the corona pandemic showed most dramatically in the second quarter in the order intake. Our Canadian, US and China locations were forced to shut down for several weeks. Our field operations were largely prevented due to the travel restrictions”.
Net sales for the 1H 2020 totaled Euro 48.2 million, down 38.5% from the year ago. The dramatic decline in net sales was expected and caused by a low order intake, the planned timing of the order book and the impacts of the coronavirus epidemic.
Of the total net sales for the reporting period, Russia accounted for 46%, Europe for 24%, North America for 13%, South America for 10%, and Asia-Pacific for 7%.
The profit before tax for the reporting period was Euro 3.6 million negative. The profit for the 1H 2020 was Euro 3.1 million negative. Earnings per share (undiluted) were Euro -0.73.
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.