Aug 12, 2009. /Lesprom Network/. The orders situation for Raute continued to deteriorate in the second quarter of 2009 to such an extent that in the first half of this year incoming orders and orders on hand dropped to the lowest level ever in the company’s history, Wood Panels Online reported. Net sales totalled EUR20.9 million (EUR 54.6m) for the reporting period, down 62% on the comparison period 2008. The Group's operating profit was EUR 4.1 million negative (EUR 3.9m positive) and accounted for -20% (+7%) of net sales. The demand for plywood and LVL (Laminated Veneer Lumber) remains at a very low level in all the important market areas. Most of the mills in the sector have had to adapt their production levels to correspond with the lowered demand either by shortening their workweek or implementing shut-down periods of varied duration. Some of the least profitable and least efficient mills have also been closed for good, due to global economic slowdown and especially the weak situation in the construction and transport industries. The weak demand for end products continued to postpone major investment decisions in the plywood and LVL industries. Due to the low capacity utilisation rates, the demand for technology services remained at a low level. Several mill-scale investment projects are still in the planning phase in most markets. The projects have not been cancelled, but their implementation is being postponed not only due to the difficult market situation but also due to the uncertain situation in the financial markets, above all, in the case of long-term financing. On May 20, 2009, Raute Corporation signed a sales contract worth some EUR 8 million on machine deliveries to Russia with a Chinese customer. For reasons beyond the control of Raute, the contract did not take effect as scheduled in June, and it is not included in the company's order book on June 30, 2009. Both the customer and Raute are continuing their efforts to bring the sale into force. Due to its strong financial position, Raute's ability to survive the economic slowdown is good. Thanks to its strong market position and the development efforts made, Raute's ability to respond to growing demand as soon as the markets recover will be excellent.