May 09, 2011. /Lesprom Network/. Raute Group’s net sales for the 1Q 2011 totaled Euro 14.6 million, up 40% on the 1Q 2010. The increase in net sales resulted from the improved outlook for the customer industries and primarily took place at the end of the period, as the company said in a press release received by Lesprom Network. Operating loss was Euro -1.4 million and accounted for -10% of net sales. Tapani Kiiski, President and CEO of Raute, said: “We started the year with a strengthened order book, and during the 1Q the order intake remained at a good level. Our order book, at Euro 48 million, reached its highest level since the 2Q 2008. A particular highlight was the high number of orders received from Russia. It appears that our efforts in the Russian market are starting to produce results. We received twice as many modernization orders as last year, which strengthens our belief that there will be a positive turnaround in the market situation. Our net sales increased 40% from the previous year, but our profit development failed to meet our expectations. The operating profit was weighed down by additional costs related to certain projects which were in the delivery phase. Keeping costs in check as the economic situation improves will be a key challenge for us in the near future. Thanks to the current market situation and order book level, we were in a position to put an end to the adaptation measures that had been started. Now our entire organization is working and our own production capacity is being normally used. Currently, our order book largely consists of smaller orders, which puts a greater strain on our critical resources than larger projects in relation to the net sales generated. Among the measures we have carried out to cascade our strategy, I would like to mention our new product, the RautePro TwinPeel peeling station that we introduced at the WoodMac trade show in Shanghai in the beginning of March. This entirely new veneer production concept targeted at China and other emerging markets attracted positive attention during the fair. I believe that, with this novelty, we will soon be able to tap into the Chinese market for plywood machinery. Despite the challenges of the early part of the year, I am confident about the near future. Our net sales will increase from the previous year and our operating result will be positive.” 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).