Nastola, Finland - Raute's profit outlook for the full year 2013 has weakened. Net sales are estimated to decline from the year 2012. Operating profit is estimated to weaken from the previous year significantly, but remain positive. Previously the company has estimated net sales and operating profit to remain at the same level as in 2012. In 2012, the Group's net sales were EUR 101.3 million and the operating profit was EUR 5.0 million positive. In the reporting period January 1 – June 30, 2013 the Group's net sales amounted to EUR 43.2 million and the operating profit was EUR +0,6 million.
Uncertainty concerning the development of the economy has been reflected in the investment decisions of Raute's customers and in the volume of new orders for project deliveries. Raute's weakened profit outlook is due to the modest order intake in July-August and the amount of new orders forecasted for the next few months.
In the remaining part of the year, Raute's net sales and operating profit are estimated to weight on the fourth quarter of the year. Based on the existing order book there is, however, no need for adaptation measures in the short term.
Several large projects encompassing single production lines and mill-scale deliveries that are in the planning and negotiation phase are pending. The delay in decision-making concerning large projects is expected to result from the schedule changes typical of project business, the uncertainty of economy and the situation in the financing market.
Raute Corporation's interim report January – September will be published on Wednesday, October 30, 2013.
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