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2007-10-25 08:00:00 CEST 2007-10-25 08:00:00 CEST REGULATED INFORMATION Raute - Quarterly reportRAUTE CORPORATION - INTERIM REPORT JANUARY 1 - SEPTEMBER 30, 2007- Net sales totaled MEUR 85.1 (MEUR 73.7), up 15.5% on the comparison period. - Operating profit, MEUR 6.2 (MEUR 2.2), and profit before tax, MEUR 6.5 (MEUR 2.5), improved considerably. - Earnings per share were EUR 1.24 (EUR 0.50). - The order intake was MEUR 48 (MEUR 89), and the order book at the end of the reporting period was MEUR 44 (MEUR 69). - Net sales are expected to grow moderately in 2007 and operating profit to improve clearly over the previous year. MR. TAPANI KIISKI, PRESIDENT AND CEO: A GOOD QUARTER IN COMPARISON WITH THE DIP LAST YEAR In terms of profitability, the past third quarter was Raute's best under the current business structure. Our performance improved in the first part of the year due to the whole organization working together successfully. This resulted in increased net sales, better project risk management and delivery quality, as well as development of the subcontracting chain. Even loading also had a positive impact on profitability. While success was seen in all of our units, a special contribution to profit development came from our Chinese operations, which were set up last year. The first phase of operations in China clearly exceeds the goals. The market outlook of our customers has remained at a good level in all of our market areas, except for North America. Several small investments, individual production lines, and veneer mill-scale projects have been launched after the slow period at the beginning of the year. However, decisions on the construction of new plywood or LVL mills have been further postponed. The low order intake in the first part of the year has brought our order book down to a normal level. Based on the number and progress of investment projects in the planning phase, I believe that our order book will strengthen in the latter part of the year. Our business still faces the same uncertainty factors as before. The US dollar has continued to weaken and the price of wood raw material has remained high. On the other hand, the demand for investments in Russia is brisker than ever. The positive profit development in the first three quarters and the order book for the latter part of the year gives us good reason to be positive about the rest of the year. MARKET SITUATION Market situation in customer industries The demand, production volume, and sales prices in Raute's customer industries have remained at a good level throughout the first part of the year, with the exception of North America. The price of round wood has remained very high in most market areas. Problems related to wood supply are restricting production in Europe, especially in the areas neighboring Russia. Uncertainties in the US housing market have affected the demand for wood products used in building. The demand is not expected to pick up until 2009. Demand for wood products technology Investment demand in the plywood, veneer, and LVL industries has remained active everywhere except the North American markets. Considering the large number of quotation requests, relatively few investment projects have actually been launched. The number of quotation requests for large projects has increased from the first part of the year. Some of the many mill-scale projects currently in the planning phase are expected to proceed to the decision-making phase before the end of the year. The demand for technology services has remained at a good level. In North America, demand is also sluggish in the services field. Order intake and order book Raute's business consists of project deliveries and technology services to the wood products industry. Project deliveries encompass complete mills, production lines, and single machines and equipment. Technology services include maintenance, spare part services, modernizations, consulting, training, and sales of reconditioned machinery. The order intake in the first part of the year amounted to EUR 48 million (MEUR 89). The order intake for projects remained low, at EUR 26 million (MEUR 69) and the order intake for technology services was EUR 22 million (MEUR 20). The third-quarter order intake amounted to EUR 15 million (MEUR 40). The comparison period comprised two mill-scale orders. This year's most important deals in the third-quarter were for a veneer mill in Lithuania and a peeling line in Brazil. This peeling line order was the third made by the same customer in the past two years. The order book at the end of the reporting period was EUR 44 million (MEUR 69). Competitive position Raute is particularly competitive in major projects for the plywood, veneer, and LVL industries. It bases its competitive position on state-of-the-art technology supported by strong product development, a range of solutions that cover the customers' entire production process and its life cycle, as well as good reference deliveries. Considerable investments in the offering and productization of technology services have created a solid foundation on which this year's good profit development is partly based. The US dollar dropping to a very low level has eroded Raute's price competitiveness in comparison with competitors whose expenses are mainly calculated in dollars. To compensate for this, Raute actively carries out productivity-enhancing activities. NET SALES AND RESULT Net sales for the reporting period were EUR 85.1 million (MEUR 73.7), up 15.5 percent on the comparison period. The progress made in the four mill-scale orders in 2006 has changed the distribution of net sales by market area. Russia took over as the biggest market area in the reporting period, accounting for 38% (13%) of net sales, while North America's share of net sales rose to 24% (17%). Europe's share dropped to 26% (27%) and that of other market areas to 12% (42%). Net sales in the reporting period were generated exclusively by technology services and project deliveries related to the wood products technology business. Technology services increased by 29% over the comparison period and accounted for 25% (23%) of net sales. The Group's operating profit, EUR 6.2 million (MEUR 2.2), and profit before tax, EUR 6.5 million (MEUR 2.5), increased from the comparison period. Profit improved due to an increase in net sales, successful project deliveries and improved productivity, and a decrease in expenses enabled by more even loading. Operating profit percentage was 7.2% (3.0%). The profit for the period was EUR 5.0 million (MEUR 1.9), and earnings per share were EUR 1.24 (EUR 0.50). Third-quarter net sales were EUR 26.5 million (MEUR 18.7). Operating profit totaled EUR 2.4 million (MEUR -0.3) and accounted for 9.2% (-1.7%) of net sales. Profit improved considerably over the exceptionally weak comparison period. Third-quarter profit amounted to EUR 1.8 million (MEUR -0.3), while earnings per share were EUR 0.46 (undiluted EUR -0.08). FINANCING The Group's financial position remained strong. At the end of the period, gearing was -12.8% (-52.7%) and equity ratio 68.3% (65.6%). The balance sheet total has decreased by EUR 14.4 million from the beginning of the year, totaling EUR 54.1 million (MEUR 56.2) at the end of the reporting period. The fluctuation in balance sheet items and the key ratios based on them results from differences in the timing of customer payments and the cost accumulation from project deliveries, which is typical of project business. Cash and cash equivalents, including financial assets recognized at fair value through profit or loss, were EUR 4.6 million (MEUR 14.9) at the end of the period. The change in cash and cash equivalents in the reporting period was EUR 19.4 million negative (MEUR 3.5), and operating cash flow was EUR -16.6 million (MEUR 5.6). Investment cash flow was EUR -1.1 million (MEUR -1.3). Financing cash flow, EUR -1.7 million (MEUR -0.8), includes EUR 2.8 million in dividend payments for 2006 (MEUR 2.3). Interest-bearing liabilities amounted to EUR 0.6 million (MEUR 0.5) at the end of the period, and unused long-term credit limits to EUR 15 million. The company also has a EUR 10 million commercial paper program. RESEARCH AND DEVELOPMENT COSTS AND CAPITAL EXPENDITURE Research and development costs totaled EUR 3.1 million (MEUR 2.7) in the reporting period, representing 3.7% (3.7%) of net sales. The increase in research and development costs was caused by differences in the timing of product development projects Investments totaled EUR 1.1 million (MEUR 1.4) and consisted of information system and other replacement investments. PERSONNEL The Group's headcount at the end of the reporting period was 572 (534). Converted to full-time employees, the average number was 570 (539). The headcount increased over the comparison period as a result of the development of Chinese operations and changes in loading at North American companies. Group companies outside Finland accounted for 25% (21%) of employees at the end of the period. CORPORATE GOVERNANCE The Annual General Meeting held on March 21, 2007, elected Mr. Jarmo Rytilahti as Chairman of the Board, Ms. Sinikka Mustakallio as Vice-Chairman, and Mr. Mika Mustakallio, Mr. Panu Mustakallio, Mr. Pekka Paasikivi, and Mr. Jorma Wiitakorpi as Board members. All of the Board members are independent of the company. Chairman Jarmo Rytilahti and two of the members (Pekka Paasikivi and Jorma Wiitakorpi) are independent of major shareholders. The chairman of the Appointment Committee is Mr. Jarmo Rytilahti, while Ms. Sinikka Mustakallio and Mr. Ville Korhonen, a representative of a major shareholder, act as its members. The Working Committee is chaired by Mr. Jarmo Rytilahti and its members are Ms. Sinikka Mustakallio and Mr. Pekka Paasikivi. The Audit Committee's tasks are handled by the Board of Directors. Authorized Public Accountants Anna-Maija Simola and Antti Unkuri are the company's auditors, and Ernst&Young Oy, an authorized public accounting company, is deputy auditor. The Group's President and CEO is Mr. Tapani Kiiski. Raute's Executive Board also includes Ms. Arja Hakala, CFO; Mr. Petri Strengell, Vice President, Technology and operations; Mr. Timo Kangas, Vice President, Technology services; and Mr. Bruce Alexander, President of North American operations. SHARES The number of Raute Corporation's shares at the end of the reporting period totaled 4,004,758, of which 991,161 were series K shares (ordinary share, 20 votes/share) and 3,013,597 series A shares (1 vote/share). The shares have a nominal value of two euro. Series K shares can be converted to series A shares under the terms described in section 3 of the Articles of Association. If a series K share is transferred to a new owner who does not previously hold series K shares, other shareholders of the K series have the right to redeem the share under the terms described in Section 4 of the Articles of Association. Raute Corporation's series A shares are listed on the OMX Nordic Exchange Helsinki. The trading code is RUTAV. Raute Corporation has signed a market making agreement with Nordea Bank Finland plc in compliance with the Liquidity Providing (LP) requirements issued by the Helsinki Stock Exchange. The company's market capitalization at the end of the reporting period was EUR 52.9 million (MEUR 50.2), with series K shares valued at the closing price of series A shares on September 30, 2007, that is EUR 13.20 (EUR 12.90). Other share-related information is presented in the interim report figures section. Board authorizations The company's Board of Directors has been authorized by the Annual General Meeting held on March 21, 2007, to decide on the buyback and directed an issue of a maximum of 400,000 of the company's series A shares. The authorizations are effective until the next Annual General Meeting. The Board of Directors has not exercised this authorization. DIVIDEND FOR THE FINANCIAL YEAR 2006 The Annual General Meeting decided to distribute a dividend of EUR 0.70 per share for 2006. The date of payment was April 2, 2007. The total amount of dividend paid was EUR 2.8 million. SHAREHOLDERS The number of shareholders totaled 1,144 at the beginning of the year and 1,219 (1,033) at the end of the reporting period. Series K shares are held by 46 private individuals (46). The management held 4.7% (4.5%) of company shares and 9.1% (9.1%) of votes. Nominee-registered shares accounted for 2.8% (1.2%) of shares. The company did not possess company shares during the reporting period or hold them as security. No flagging notifications were given to the company in the reporting period. SEASONAL FLUCTUATION IN BUSINESS The Group's net sales and working capital fluctuate in every quarter due to different types of project deliveries and their schedules. Business does not involve systematic seasonal changes, with the exception of technology services delivered to Finland, many of which take place during service shutdowns in the summer. BUSINESS RISKS Hedging of foreign currency receivables Items related to business payments and denominated in foreign currency are hedged with currency derivatives when contracts take effect. Forward contracts in Canadian and US dollars related to the economic hedging of payments from binding sales agreements had a nominal value of EUR 6.6 million (MEUR 2.1) at the end of the reporting period. No forward contracts subject to fair value hedging were effective at the end of the reporting period. The measurement of forward contracts in compliance with IFRS had a positive impact of EUR 0.3 million on net sales and operating profit (MEUR 0.1) compared to the Finnish Accounting Standards. OUTLOOK FOR 2007 The demand for investments in Raute's customer industries is expected to remain good. Brisk demand is forecasted to generate new orders in several market areas in the last part of the year and therefore the order book is expected to strengthen for the coming year. Due to the good development in the first three quarters and the order book for the rest of the year, net sales in 2007 are expected to increase moderately and operating profit to improve considerably over the previous year. CONSOLIDATED INTERIM FINANCIAL STATEMENTS JANUARY 1 - SEPTEMBER 30, 2007 Figures are not audited (Figures in EUR 1 000) -------------------------------------------------------------------------------- | CONSOLIDATED INCOME | Note| 1.7. - | 1.7. - | 1.1. - | 1.1. - | 1.1. - | | STATEMENT | | 30.9. | 30.9. | 30.9. | 30.9. | 31.12. | -------------------------------------------------------------------------------- | | | 2007 | 2006 | 2007 | 2006 | 2006 | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | NET SALES |2,3,4| 26 466 | 18 666 | 85 116 | 73 711 | 106 206 | | | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Other operating income | | 17 | 30 | 75 | 127 | 199 | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Increase (+) or decrease | | 103 | -508 | 295 | -98 | -111 | | (-) in inventories of | | | | | | | | finished goods and work | | | | | | | | in progress | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Materials and services | | 14 653 | 10 146 | 49 089 | 42 928 | 62 418 | -------------------------------------------------------------------------------- | Expenses from employee | 7 | 6 397 | 5 539 | 20 772 | 19 130 | 26 227 | | benefits | | | | | | | -------------------------------------------------------------------------------- | Depreciation, | | 684 | 616 | 2 000 | 1 790 | 2 660 | | amortization and | | | | | | | | impairment charges | | | | | | | -------------------------------------------------------------------------------- | Other operating expenses | | 2 412 | 2 211 | 7 457 | 7 679 | 10 476 | -------------------------------------------------------------------------------- | Total operating expenses | 6 | 24 146 | 18 512 | 79 319 | 71 527 | 101 781 | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | OPERATING PROFIT | | 2 440 | -324 | 6 166 | 2 214 | 4 513 | -------------------------------------------------------------------------------- | % of net sales | | 9 % | -2 % | 7 % | 3 % | 4 % | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Financial income | | -1 | 184 | 501 | 546 | 745 | -------------------------------------------------------------------------------- | Financial expenses | | -57 | -92 | -162 | -286 | -371 | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | PROFIT BEFORE TAX | | 2 382 | -233 | 6 506 | 2 474 | 4 887 | -------------------------------------------------------------------------------- | % of net sales | | 9 % | -1 % | 8 % | 3 % | 5 % | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Income taxes *) | | -536 | -66 | -1 531 | -539 | -1 255 | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | PROFIT FOR THE PERIOD | | 1 845 | -299 | 4 974 | 1 935 | 3 632 | -------------------------------------------------------------------------------- | % of net sales | | 7 % | -2 % | 6 % | 3 % | 3 % | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | *) Income taxes represent the tax corresponding to the period's result, | | based on the estimated full-year tax rate. | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Breakdown | | | | | | | -------------------------------------------------------------------------------- | Minority interest | | 0 | 0 | 0 | 0 | 0 | -------------------------------------------------------------------------------- | Share of profit that | | 1 845 | -299 | 4 974 | 1 935 | 3 632 | | belongs to owners of the | | | | | | | | parent company | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Earnings per share, EUR | | | | | | | -------------------------------------------------------------------------------- | Undiluted earnings per | | 0,46 | -0,08 | 1,24 | 0,50 | 0,94 | | share | | | | | | | -------------------------------------------------------------------------------- | Diluted earnings per | | 0,46 | -0,08 | 1,24 | 0,49 | 0,94 | | share | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Shares (1 000 pcs) | | | | | | | -------------------------------------------------------------------------------- | Adjusted average number | | 4 005 | 3 834 | 4 005 | 3 834 | 3 867 | | of shares | | | | | | | -------------------------------------------------------------------------------- | Adjusted average number | | 4 005 | 3 957 | 4 005 | 3 957 | 3 867 | | of shares diluted | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED BALANCE | Note | | | 30.9. | 30.9. | 31.12. | | SHEET | | | | | | | -------------------------------------------------------------------------------- | | | | | 2007 | 2006 | 2006 | -------------------------------------------------------------------------------- | ASSETS | | | | | | | -------------------------------------------------------------------------------- | Fixed assets and other | | | | | | | | non-current assets | | | | | | | -------------------------------------------------------------------------------- | - Intangible assets | | | | 2 716 | 2 991 | 2 924 | -------------------------------------------------------------------------------- | - Tangible assets | | | | 11 901 | 13 214 | 12 542 | -------------------------------------------------------------------------------- | - Available-for-sale | | | | 395 | 404 | 395 | | investments | | | | | | | -------------------------------------------------------------------------------- | - Deferred tax assets | | | | 348 | 356 | 487 | -------------------------------------------------------------------------------- | Total | | | | 15 360 | 16 964 | 16 348 | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Current assets | | | | | | | -------------------------------------------------------------------------------- | - Inventories | | | | 5 411 | 4 366 | 4 933 | -------------------------------------------------------------------------------- | - Accounts receivables | 4 | | | 28 756 | 20 060 | 23 184 | | and other receivables | | | | | | | -------------------------------------------------------------------------------- | - Financial assets at | | | | 2 653 | 9 554 | 10 195 | | fair value through | | | | | | | | profit or loss | | | | | | | -------------------------------------------------------------------------------- | - Cash and cash | | | | 1 926 | 5 305 | 13 812 | | equivalents | | | | | | | -------------------------------------------------------------------------------- | Total | | | | 38 746 | 39 285 | 52 124 | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | TOTAL ASSETS | 2 | | | 54 107 | 56 249 | 68 472 | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | SHAREHOLDERS' EQUITY | | | | | | | | AND LIABILITIES | | | | | | | -------------------------------------------------------------------------------- | Shareholders' equity | | | | | | | -------------------------------------------------------------------------------- | - Share capital | | | | 8 010 | 7 779 | 8 010 | -------------------------------------------------------------------------------- | - Share premium | | | | 6 498 | 5 850 | 6 498 | -------------------------------------------------------------------------------- | - Other funds | 7 | | | 218 | 879 | -201 | -------------------------------------------------------------------------------- | - Retained earnings | | | | 11 824 | 10 846 | 11 370 | -------------------------------------------------------------------------------- | - Profit for the period | | | | 4 974 | 1 935 | 3 632 | -------------------------------------------------------------------------------- | Share of shareholders' | | | | 31 524 | 27 289 | 29 309 | | equity that belongs to | | | | | | | | owners of the parent | | | | | | | | company | | | | | | | -------------------------------------------------------------------------------- | Minority interest | | | | 0 | 0 | 0 | -------------------------------------------------------------------------------- | Total shareholders' | | | | 31 524 | 27 289 | 29 309 | | equity | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Long-term liabilities | | | | | | | -------------------------------------------------------------------------------- | - Provisions | | | | 216 | 201 | 262 | -------------------------------------------------------------------------------- | - Deferred tax | | | | 1 006 | 1 224 | 1 084 | | liabilities | | | | | | | -------------------------------------------------------------------------------- | - Long-term | | | | 317 | 318 | 317 | | interest-bearing | | | | | | | | liabilities | | | | | | | -------------------------------------------------------------------------------- | Total | | | | 1 539 | 1 743 | 1 663 | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Current liabilities | | | | | | | -------------------------------------------------------------------------------- | - Provisions | | | | 958 | 1 700 | 1 726 | -------------------------------------------------------------------------------- | - Pension obligations | | | | 279 | 347 | 335 | -------------------------------------------------------------------------------- | - Short-term | | | | 238 | 150 | 150 | | interest-bearing | | | | | | | | liabilities | | | | | | | -------------------------------------------------------------------------------- | - Advance payments | 4 | | | 7 980 | 14 641 | 19 726 | | received | | | | | | | -------------------------------------------------------------------------------- | - Current tax | | | | 98 | 0 | 113 | | liabilities | | | | | | | -------------------------------------------------------------------------------- | - Trade and other | | | | 11 489 | 10 379 | 15 450 | | payables | | | | | | | -------------------------------------------------------------------------------- | Total | | | | 21 043 | 27 217 | 37 500 | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Total liabilities | | | | 22 582 | 28 960 | 39 163 | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | TOTAL SHAREHOLDERS' EQUITY AND | | | 54 107 | 56 249 | 68 472 | | LIABILITIES | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED CASH FLOW STATEMENT | | 1.1. - | 1.1. - | 1.1. - | | | | 30.9. | 30.9. | 31.12. | -------------------------------------------------------------------------------- | | | 2007 | 2006 | 2006 | -------------------------------------------------------------------------------- | CASH FLOW FROM | | | | | | | | OPERATING ACTIVITIES | | | | | | | -------------------------------------------------------------------------------- | Proceeds from sales | | | | 68 128 | 82 573 | 116 046 | -------------------------------------------------------------------------------- | Proceeds from other | | | | 75 | 85 | 155 | | operating income | | | | | | | -------------------------------------------------------------------------------- | Payments of | | | | -83 794 | -76 347 | -100 100 | | operating expenses | | | | | | | -------------------------------------------------------------------------------- | Cash flow before | | | | -15 591 | 6 311 | 16 102 | | financial items and | | | | | | | | taxes | | | | | | | -------------------------------------------------------------------------------- | Interests and other | | | | -162 | -89 | -190 | | operating financial | | | | | | | | expenses paid | | | | | | | -------------------------------------------------------------------------------- | Interests and other | | | | 386 | 541 | 660 | | income received | | | | | | | -------------------------------------------------------------------------------- | Dividends received | | | | 115 | 24 | 24 | -------------------------------------------------------------------------------- | Income taxes paid | | | | -1 387 | -1 166 | -1 614 | -------------------------------------------------------------------------------- | NET CASH FLOW FROM (+) / USED IN (-) | | -16 639 | 5 621 | 14 982 | | OPERATING ACTIVITIES (A) | | | | | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | CASH FLOW FROM | | | | | | | | INVESTING ACTIVITIES | | | | | | | -------------------------------------------------------------------------------- | Capital expenditure in | | | -1 073 | -1 376 | -1 809 | | tangible and intangible | | | | | | | assets | | | | | | -------------------------------------------------------------------------------- | Purchases of | | | | 0 | -49 | -49 | | available-for-sale | | | | | | | | as investments | | | | | | | -------------------------------------------------------------------------------- | Proceeds from sale of | | | 0 | 81 | 292 | | tangible and intangible | | | | | | | assets | | | | | | -------------------------------------------------------------------------------- | Proceeds from other | | | | 0 | 12 | 20 | | investments | | | | | | | -------------------------------------------------------------------------------- | NET CASH FLOW FROM (+) / USED IN (-) | | -1 073 | -1 332 | -1 545 | | INVESTING ACTIVITIES (B) | | | | | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | CASH FLOW FROM | | | | | | | | FINANCING ACTIVITIES | | | | | | | -------------------------------------------------------------------------------- | Repayments of | | | | 1 000 | 95 | 95 | | long-term and | | | | | | | | short-term loan | | | | | | | | receivables | | | | | | | -------------------------------------------------------------------------------- | Increase of | | | | 88 | 0 | 0 | | short-term | | | | | | | | liabilities | | | | | | | -------------------------------------------------------------------------------- | Repayment of | | | | 0 | -66 | -67 | | long-term | | | | | | | | liabilities | | | | | | | -------------------------------------------------------------------------------- | Proceeds from | | | | 0 | 1 436 | 1 436 | | issuance of shares | | | | | | | -------------------------------------------------------------------------------- | Dividends paid | | | | -2 803 | -2 290 | -2 290 | -------------------------------------------------------------------------------- | NET CASH FROM (+) / USED IN | | | -1 715 | -825 | -826 | | (-) FINANCING ACTIVITIES (C) | | | | | | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | NET CHANGE IN CASH AND CASH | | | -19 427 | 3 464 | 12 611 | | EQUIVALENTS (A+B+C) | | | | | | -------------------------------------------------------------------------------- | increase (+) / | | | | | | | | decrease (-) | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | CASH AND CASH | | | | | | | | EQUIVALENTS*) | | | | | | | -------------------------------------------------------------------------------- | - AT THE BEGINNING | | | | 24 006 | 11 395 | 11 395 | | OF THE PERIOD | | | | | | | -------------------------------------------------------------------------------- | - AT THE END OF THE | | | | 4 580 | 14 859 | 24 006 | | PERIOD | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | CASH AND CASH EQUIVALENTS IN THE | | | | | | BALANCE SHEET AT THE END OF THE | | | | | | PERIOD | | | | | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Financial assets at | | | | 2 653 | 9 554 | 10 195 | | fair value through | | | | | | | | profit or loss | | | | | | | -------------------------------------------------------------------------------- | Cash and cash | | | | 1 926 | 5 305 | 13 812 | | equivalents | | | | | | | -------------------------------------------------------------------------------- | Total | | | | 4 580 | 14 859 | 24 006 | -------------------------------------------------------------------------------- *) Cash and cash equivalents comprise trading assets as well as cash and bank receivables, which will be due within the following three months' period. -------------------------------------------------------------------------------- | CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY | -------------------------------------------------------------------------------- | | Share | Share | Other | Exchange | Retained | -------------------------------------------------------------------------------- | |capital| premium | funds | rate diff.| earnings | | | | | | | | -------------------------------------------------------------------------------- | EQUITY Jan. 1, 2007 | 8 010 | 6 498 | -201 | 274 | 14 726 | -------------------------------------------------------------------------------- | Exchange differences from | | | 376 | | | | net investments | | | | | | -------------------------------------------------------------------------------- | Taxes related to items | | | | | | | recognized in equity or | | | | | | | transferred from equity | | | | | | -------------------------------------------------------------------------------- | Translation differences | | | | -374 | | -------------------------------------------------------------------------------- | Other increase/decrease | | | | | | -------------------------------------------------------------------------------- | Net income recognized | 0 | 0 | 376 | -374 | 0 | | directly in equity | | | | | | -------------------------------------------------------------------------------- | Profit for the period | | | | | 4 974 | -------------------------------------------------------------------------------- | Total income and expenses | 0 | 0 | 376 | -374 | 4 974 | | recognized in the period | | | | | | -------------------------------------------------------------------------------- | Share capital increase | | | | | | | (options) | | | | | | -------------------------------------------------------------------------------- | Dividend | | | | | -2 803 | -------------------------------------------------------------------------------- | Equity-settled | | | | | | | share-based | | | | | | -------------------------------------------------------------------------------- | transactions | | | 43 | | | -------------------------------------------------------------------------------- | EQUITY September 30, 2007 | 8 010 | 6 498 | 218 | -100 | 16 897 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (continue) | -------------------------------------------------------------------------------- | |To owners of| | Minority | | | EQUITY | -------------------------------------------------------------------------------- | | the parent | | interest | | | TOTAL | -------------------------------------------------------------------------------- | | company | | | | | | -------------------------------------------------------------------------------- | EQUITY Jan. 1, 2007 | 29 308 | | 0 | | | 29 308 | -------------------------------------------------------------------------------- | Exchange differences | 376 | | | | | 376 | | from net investments | | | | | | | -------------------------------------------------------------------------------- | Taxes related to | 0 | | | | | 0 | | items recognized in | | | | | | | | equity or transferred | | | | | | | | from equity | | | | | | | -------------------------------------------------------------------------------- | Translation | -374 | | | | | -374 | | differences | | | | | | | -------------------------------------------------------------------------------- | Other | 0 | | | | | 0 | | increase/decrease | | | | | | | -------------------------------------------------------------------------------- | Net income recognized | 2 | | 0 | | | 2 | | directly in equity | | | | | | | -------------------------------------------------------------------------------- | Profit for the period | 4 974 | | | | | 4 974 | -------------------------------------------------------------------------------- | Total income and | 4 976 | | 0 | | | 4 976 | | expenses recognized | | | | | | | | in the period | | | | | | | -------------------------------------------------------------------------------- | Share capital | 0 | | | | | 0 | | increase (options) | | | | | | | -------------------------------------------------------------------------------- | Dividend | -2 803 | | | | | -2 803 | -------------------------------------------------------------------------------- | Equity-settled | | | | | | | | share-based | | | | | | | -------------------------------------------------------------------------------- | transactions | 43 | | | | | 43 | -------------------------------------------------------------------------------- | EQUITY September 30, | 31 524 | | 0 | | | 31 524 | | 2007 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY | -------------------------------------------------------------------------------- | | Share | Share | Other | Exchange | Retained | -------------------------------------------------------------------------------- | |capital| premium| funds | rate diff.| earnings | | | | | | | | -------------------------------------------------------------------------------- | EQUITY Jan. 1, 2006 | 7 629 | 5 429 | 14 | -533 | 13 384 | -------------------------------------------------------------------------------- | Exchange differences | | | | | | | from net investments | | | | | | -------------------------------------------------------------------------------- | Taxes related to items | | | | | | | recognized in equity or | | | | | | | transferred from equity | | | | | | -------------------------------------------------------------------------------- | Translation differences | | | | 226 | | -------------------------------------------------------------------------------- | Other increase/decrease | | | | | | -------------------------------------------------------------------------------- | Net income recognized | 0 | 0 | 0 | 226 | 0 | | directly in equity | | | | | | -------------------------------------------------------------------------------- | Profit for the period | | | | | 1 935 | -------------------------------------------------------------------------------- | Total income and | 0 | 0 | 0 | 226 | 1 935 | | expenses recognized in | | | | | | | the period | | | | | | -------------------------------------------------------------------------------- | Share capital increase | 150 | 421 | 865 | | | | (options) | | | | | | -------------------------------------------------------------------------------- | Dividend | | | | | -2 290 | -------------------------------------------------------------------------------- | Equity-settled | | | | | | | share-based | | | | | | -------------------------------------------------------------------------------- | transactions | | | 58 | | | -------------------------------------------------------------------------------- | EQUITY September 30, | 7 779 | 5 850 | 937 | -307 | 13 030 | | 2006 | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (continue) | -------------------------------------------------------------------------------- | | To | | Minority | | | EQUITY | | | owners | | | | | | | | of | | | | | | -------------------------------------------------------------------------------- | | the | | interest | | | TOTAL | | | parent | | | | | | -------------------------------------------------------------------------------- | | company | | | | | | -------------------------------------------------------------------------------- | EQUITY Jan. 1, 2006 | 25 923 | | 224 | | | 26 147 | -------------------------------------------------------------------------------- | Exchange differences | 0 | | | | | 0 | | from net investments | | | | | | | -------------------------------------------------------------------------------- | Taxes related to | 0 | | | | | 0 | | items recognized in | | | | | | | | equity or | | | | | | | | transferred from | | | | | | | | equity | | | | | | | -------------------------------------------------------------------------------- | Translation | 226 | | | | | 226 | | differences | | | | | | | -------------------------------------------------------------------------------- | Other | 0 | | -224 | | | -224 | | increase/decrease | | | | | | | -------------------------------------------------------------------------------- | Net income | 226 | | -224 | | | 2 | | recognized directly | | | | | | | | in equity | | | | | | | -------------------------------------------------------------------------------- | Profit for the | 1 935 | | | | | 1 935 | | period | | | | | | | -------------------------------------------------------------------------------- | Total income and | 2 161 | | -224 | | | 1 937 | | expenses recognized | | | | | | | | in the period | | | | | | | -------------------------------------------------------------------------------- | Share capital | 1 436 | | | | | 1 436 | | increase (options) | | | | | | | -------------------------------------------------------------------------------- | Dividend | -2 290 | | | | | -2 290 | -------------------------------------------------------------------------------- | Equity-settled | | | | | | | | share-based | | | | | | | -------------------------------------------------------------------------------- | transactions | 58 | | | | | 58 | -------------------------------------------------------------------------------- | EQUITY September 30, | 27 289 | | 0 | | | 27 289 | | 2006 | | | | | | | -------------------------------------------------------------------------------- NOTES GENERAL INFORMATION Raute Corporation's Board of Directors has on 24 October 2007 reviewed the Group's Interim financial statements for January 1 - September 30, 2007, and decided to publish Raute Corporation's Interim financial reporting for January 1 - September 30, 2007, in compliance with this release. 1. Accounting Principles Raute Corporation's Interim financial reporting has been drawn up in compliance with IAS 34. Raute Group's Interim financial statements for January 1 - September 30, 2007, included in the Interim financial reporting do not contain full notes and other information presented in the financial statements. Therefore, the Interim financial reporting should be read in conjunction with the Financial statements published for 2006. The figures presented in the Interim financial reporting have not been audited. Figures in parentheses refer to the corresponding figures in the comparison year. All the monetary figures presented in this interim report are in thousands euros, unless otherwise stated. Due to the roundings of the figures in the interim financial statement tables, the sums of figures may deviate from the sum total presented in the table. The preparation of interim financial statements according to IFRS requires management to use estimates and assumptions that affect the assets and liabilities on the balance sheet date, as well as the income and expenses for the financial period. Because the forward-looking estimates and assumptions are based on management's best knowledge at the interim time, they comprise risks and uncertainties. The actual results may differ from these estimates. On January 1, 2007, the Group adopted the following standards and interpretations issued by IASB: - IFRIC 8: Scope of IFRS 2, - IFRIC 9: Reassessment of Embedded Derivatives, - IFRIC 10: Interim Financial Reporting and Impairment, - IFRS 7 Financial Instruments: Disclosures, and - IAS 1 Amendment to disclosures about capital in financial statements. The adoption of the standards has not had any material impact on the figures in the Interim financial statements. In other respects, the Group has followed the accounting principles described in the Financial statements for 2006. 2. Segment information Primary reporting segment Raute's primary reporting segment is the business segment. Continuing operations belong to the wood products technology segment. Secondary reporting segment The secondary reporting segment is geographical. The geographical segment consists of market areas accounting for over 10% of the Group's net sales. Geographical reporting segment information -------------------------------------------------------------------------------- | Net sales to external | 1.1. - | | 1.1. - | | 1.1. - | | | clients by | 30.9. | | 30.9. | | 31.12. | | -------------------------------------------------------------------------------- | clients' geographical | 2007 | % | 2006 | % | 2006 | % | | location | | | | | | | -------------------------------------------------------------------------------- | Russia | 32 508 | 38 | 9 273 | 13 | 12 470 | 12 | -------------------------------------------------------------------------------- | Europe | 22 181 | 26 | 20 166 | 27 | 30 620 | 29 | -------------------------------------------------------------------------------- | North America | 20 373 | 24 | 12 448 | 17 | 17 107 | 16 | -------------------------------------------------------------------------------- | South America | 7 787 | 9 | 25 881 | 35 | 39 160 | 37 | -------------------------------------------------------------------------------- | Others | 2 267 | 3 | 5 943 | 8 | 6 849 | 6 | -------------------------------------------------------------------------------- | TOTAL | 85 116 | 100 | 73 711 | 100 | 106 206 | 100 | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Assets by | | | | | | | | geographical location | | | | | | | -------------------------------------------------------------------------------- | Russia | 439 | 1 | 287 | 1 | 190 | 0 | -------------------------------------------------------------------------------- | Europe | 46 237 | 85 | 49 682 | 88 | 63 832 | 94 | -------------------------------------------------------------------------------- | North America | 6 164 | 11 | 6 082 | 11 | 4 158 | 6 | -------------------------------------------------------------------------------- | South America | 47 | 0 | 50 | 0 | 38 | 0 | -------------------------------------------------------------------------------- | Others | 1 220 | 2 | 148 | 0 | 254 | 0 | -------------------------------------------------------------------------------- | TOTAL | 54 107 | 100 | 56 249 | 100 | 68 472 | 100 | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Capital expenditure | | | | | | | | by geographical | | | | | | | | location | | | | | | | -------------------------------------------------------------------------------- | Russia | 0 | 0 | 0 | 0 | 0 | 0 | -------------------------------------------------------------------------------- | Europe | 712 | 66 | 1 347 | 98 | 1 801 | 97 | -------------------------------------------------------------------------------- | North America | 75 | 7 | 26 | 2 | 51 | 3 | -------------------------------------------------------------------------------- | South America | 0 | 0 | 0 | 0 | 0 | 0 | -------------------------------------------------------------------------------- | Others | 286 | 27 | 0 | 0 | 0 | 0 | -------------------------------------------------------------------------------- | TOTAL | 1 073 | 100 | 1 373 | 100 | 1 852 | 100 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 3. Proceeds from | | | | | | | | sales | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | 1.1. - | | 1.1. - | | 1.1. - | | | | 30.9. | | 30.9. | | 31.12. | | -------------------------------------------------------------------------------- | by market area | 2007 | % | 2006 | % | 2006 | % | -------------------------------------------------------------------------------- | Russia | 32 508 | 38 | 9 273 | 13 | 12 470 | 12 | -------------------------------------------------------------------------------- | North America | 20 373 | 24 | 12 448 | 17 | 17 107 | 16 | -------------------------------------------------------------------------------- | Rest of Europe | 13 924 | 16 | 13 146 | 18 | 20 203 | 19 | -------------------------------------------------------------------------------- | Finland | 8 257 | 10 | 7 019 | 10 | 10 417 | 10 | -------------------------------------------------------------------------------- | South America | 7 787 | 9 | 25 881 | 35 | 39 160 | 37 | -------------------------------------------------------------------------------- | Asia | 885 | 1 | 5 086 | 7 | 5 593 | 5 | -------------------------------------------------------------------------------- | Oceania | 597 | 1 | 409 | 0 | 501 | 0 | -------------------------------------------------------------------------------- | Others | 785 | 1 | 449 | 0 | 755 | 1 | -------------------------------------------------------------------------------- | TOTAL | 85 116 | 100 | 73 711 | 100 | 106 206 | 100 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 4. Long-term projects | | | | 30.9. | 30.9. | 31.12. | -------------------------------------------------------------------------------- | | | | | 2007 | 2006 | 2006 | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Net sales | | | | | | | -------------------------------------------------------------------------------- | Net sales by | | | | 73 398 | 61 453 | 90 464 | | percentage of | | | | | | | | completion | | | | | | | -------------------------------------------------------------------------------- | Other net sales | | | | 11 718 | 12 258 | 15 742 | -------------------------------------------------------------------------------- | TOTAL | | | | 85 116 | 73 711 | 106 206 | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Project revenues | | | | 109 120 | 73 000 | 77 607 | | entered as income | | | | | | | | from currently | | | | | | | | undelivered long-term | | | | | | | | projects recognized | | | | | | | | by percentage of | | | | | | | | completion | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Amount of long-term | | | | 40 718 | 63 953 | 74 281 | | projects revenues not | | | | | | | | yet entered as income | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Specification of | | | | | | | | combined asset and | | | | | | | | liability items: | | | | | | | -------------------------------------------------------------------------------- | Accrued income | | | | 110 024 | 72 972 | 76 989 | | corresponding to | | | | | | | | revenues by | | | | | | | | percentage of | | | | | | | | completion | | | | | | | -------------------------------------------------------------------------------- | Advances received | | | | -87 280 | -61 636 | -62 588 | | from project | | | | | | | | customers | | | | | | | -------------------------------------------------------------------------------- | Project receivables included | | | 22 744 | 11 336 | 14 401 | | in short-term receivables | | | | | | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Advance payments | | | | 7 980 | 14 641 | 19 726 | | received at Balance | | | | | | | | Sheet | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 5. Number of | | | | 30.9. | 30.9. | 31.12. | | personnel | | | | | | | -------------------------------------------------------------------------------- | | | | | 2007 | 2006 | 2006 | -------------------------------------------------------------------------------- | - effective, on | | | | 570 | 539 | 546 | | average | | | | | | | -------------------------------------------------------------------------------- | - in books, on | | | | 576 | 539 | 547 | | average | | | | | | | -------------------------------------------------------------------------------- | - in books, at the | | | | 572 | 534 | 540 | | end of period | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 6. Research and | | | | 30.9. | 30.9. | 31.12. | | development costs | | | | | | | -------------------------------------------------------------------------------- | | | | | 2007 | 2006 | 2006 | -------------------------------------------------------------------------------- | Research and | | | | 3 137 | 2 740 | 3 765 | | development costs on | | | | | | | | the period | | | | | | | -------------------------------------------------------------------------------- | Depreciation of | | | | 275 | 132 | 228 | | capitalized | | | | | | | | development costs | | | | | | | -------------------------------------------------------------------------------- | Recognized as assets | | | | -191 | -449 | -538 | | in balance sheet | | | | | | | -------------------------------------------------------------------------------- | Research and | | | | 3 221 | 2 423 | 3 455 | | development costs | | | | | | | | entered as expenses | | | | | | | | for the period | | | | | | | -------------------------------------------------------------------------------- 7. Share-based payments The effect of the share-based remunerations to the profit of Raute Group was EUR 81 thousand. At the end of the reporting period the current value of the cash portion was EUR 13.20 per share. The value of share-based remunerations was EUR 0.3 million total. -------------------------------------------------------------------------------- | 8. Off- balance sheet | | | | 30.9. | 30.9. | 31.12. | | commitments | | | | | | | -------------------------------------------------------------------------------- | | | | | 2007 | 2006 | 2006 | -------------------------------------------------------------------------------- | Security of own debts | | | | | | | -------------------------------------------------------------------------------- | - mortgages | | | | 11 059 | 11 134 | 11 134 | -------------------------------------------------------------------------------- | Security for Group's | | | | | | | | liabilities | | | | | | | -------------------------------------------------------------------------------- | - bank guarantees | | | | 17 150 | 16 872 | 14 116 | -------------------------------------------------------------------------------- | Other own liabilities | | | | | | | -------------------------------------------------------------------------------- | Leasing and rent | | | | | | | | liabilities | | | | | | | -------------------------------------------------------------------------------- | - for the current | | | | 73 | 72 | 218 | | accounting period | | | | | | | -------------------------------------------------------------------------------- | - for subsequent | | | | 541 | 154 | 527 | | accounting periods | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- No loans or pledges have been given or other commitments made on behalf of the company's management, shareholders or associated companies. -------------------------------------------------------------------------------- | 9. Currency | | | | 30.9. | 30.9. | 31.12. | | derivatives | | | | | | | -------------------------------------------------------------------------------- | | | | | 2007 | 2006 | 2006 | -------------------------------------------------------------------------------- | Currency derivatives | | | | | | | | are used for currency | | | | | | | | hedging purposes. | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Nominal values of | | | | | | | | forward contracts in | | | | | | | | foreign currency | | | | | | | -------------------------------------------------------------------------------- | Economic hedging | | | | | | | -------------------------------------------------------------------------------- | - related to | | | | 3 650 | 2 232 | 2 065 | | financing | | | | | | | -------------------------------------------------------------------------------- | - related to hedging | | | | 6 568 | 2 076 | 174 | | of net sales | | | | | | | -------------------------------------------------------------------------------- | Hedge accounting | | | | | | | -------------------------------------------------------------------------------- | - related to the | | | | 0 | 13 596 | 7 000 | | hedging of net sales | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Fair values of | | | | | | | | forward contracts in | | | | | | | | foreign currency | | | | | | | -------------------------------------------------------------------------------- | Economic hedging | | | | | | | -------------------------------------------------------------------------------- | - related to | | | | -4 | -2 | 2 | | financing | | | | | | | -------------------------------------------------------------------------------- | - related to the | | | | 346 | -3 | -8 | | hedging of net sales | | | | | | | -------------------------------------------------------------------------------- | Hedge accounting | | | | | | | -------------------------------------------------------------------------------- | - related to the | | | | 0 | -91 | -50 | | hedging of net sales | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Purchased currency | | | | | | | | options | | | | | | | -------------------------------------------------------------------------------- | - nominal values | | | | 0 | 0 | 1 963 | -------------------------------------------------------------------------------- | - fair values | | | | 0 | 0 | 13 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | GROUP KEY RATIOS | | | | | | | -------------------------------------------------------------------------------- | | | | | 1.1. - | 1.1. - | 1.1. - | | | | | | 30.9. | 30.9. | 31.12. | -------------------------------------------------------------------------------- | | | | | 2007 | 2006 | 2006 | -------------------------------------------------------------------------------- | Return on investment | | | | 28,7 % | 13,5 % | 18,6 % | | , ROI | | | | | | | -------------------------------------------------------------------------------- | Return on equity , | | | | 21,8 % | 9,7 % | 13,1 % | | ROE | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Quick ratio | | | | 2,6 | 3,2 | 2,7 | -------------------------------------------------------------------------------- | Gearing | | | | -12,8 % | -52,7 % | -80,3 % | -------------------------------------------------------------------------------- | Equity ratio | | | | 68,3 % | 65,6 % | 60,1 % | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Order book, EUR | | | | 44 | 69 | 77 | | million | | | | | | | -------------------------------------------------------------------------------- | Order intake, EUR | | | | 48 | 89 | 132 | | million | | | | | | | -------------------------------------------------------------------------------- | Exported portion of | | | | 90,3 % | 90,5 % | 90,2 % | | net sales | | | | | | | -------------------------------------------------------------------------------- | Change in net sales | | | | 15,5 % | -4,4 % | -2,2 % | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Gross capital | | | | 1,1 | 1,4 | 1,9 | | expenditure, EUR | | | | | | | | million | | | | | | | -------------------------------------------------------------------------------- | Gross capital | | | | 1,3 % | 1,9 % | 1,7 % | | expenditure of net | | | | | | | | sales | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Research and | | | | 3,1 | 2,7 | 3,8 | | development, EUR | | | | | | | | million | | | | | | | -------------------------------------------------------------------------------- | Research and | | | | 3,7 % | 3,7 % | 3,5 % | | development of net | | | | | | | | sales | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Earnings per share | | | | | | | | (EPS), EUR | | | | | | | -------------------------------------------------------------------------------- | - basic | | | | 1,24 | 0,50 | 0,94 | -------------------------------------------------------------------------------- | - diluted | | | | 1,24 | 0,49 | 0,94 | -------------------------------------------------------------------------------- | Equity to share, EUR | | | | 7,87 | 7,02 | 7,32 | -------------------------------------------------------------------------------- | Dividend per share | | | | | | 0,70 | | series K shares, EUR | | | | | | | -------------------------------------------------------------------------------- | Dividend per share | | | | | | 0,70 | | series A shares, EUR | | | | | | | -------------------------------------------------------------------------------- | Dividend per profit | | | | | | 74,5 % | -------------------------------------------------------------------------------- | Effective dividend | | | | | | 5,5 % | | return | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Share price at the | | | | 13,20 | 12,90 | 12,85 | | end of period, EUR | | | | | | | -------------------------------------------------------------------------------- | Number of shares | | | | | | | -------------------------------------------------------------------------------- | - weighted average, 1 | | | | 4 005 | 3 834 | 3 867 | | 000 pcs | | | | | | | -------------------------------------------------------------------------------- | - diluted, 1 000 pcs | | | | 4 005 | 3 957 | 3 867 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- The formulas used to calculate key ratios are described on page 60 of the Annual Report 2006. -------------------------------------------------------------------------------- | THE DEVELOPMENT OF QUARTERLY RESULTS | -------------------------------------------------------------------------------- | | Q 3 | Q 2 | Q 1 | Q 4 | Rolling | Rolling | -------------------------------------------------------------------------------- | | 2007 | 2007 | 2007 | 2006 |1.10.2006|1.10.2005 | | | | | | | | | -------------------------------------------------------------------------------- | | | | | | - | - | -------------------------------------------------------------------------------- | | | | | |30.9.2007| 30.9.2006| | | | | | | | | -------------------------------------------------------------------------------- | NET SALES | 26 466 | 29 769 | 28 882 | 32 494 | 117 610 | 105 215 | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Other operating | 17 | 19 | 38 | 72 | 147 | 216 | | income | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Increase (+) or | 103 | -54 | 246 | -13 | 282 | -1 166 | | decrease (-) in | | | | | | | | inventories of | | | | | | | | finished goods and | | | | | | | | work in progress | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Materials and | 14 653 | 17 439 | 16 997 | 19 490 | 68 579 | 61 179 | | services | | | | | | | -------------------------------------------------------------------------------- | Expenses from | 6 397 | 7 369 | 7 007 | 7 097 | 27 869 | 25 749 | | employee benefits | | | | | | | -------------------------------------------------------------------------------- | Depreciation, | 684 | 663 | 653 | 871 | 2 871 | 2 503 | | amortization and | | | | | | | | impairment charges | | | | | | | -------------------------------------------------------------------------------- | Other operating | 2 412 | 2 427 | 2 618 | 2 796 | 10 253 | 11 925 | | expenses | | | | | | | -------------------------------------------------------------------------------- | Total operating | 24 146 | 27 898 | 27 276 | 30 254 | 109 573 | 101 355 | | expenses | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | OPERATING PROFIT | 2 440 | 1 836 | 1 891 | 2 299 | 8 465 | 2 909 | -------------------------------------------------------------------------------- | % of net sales | 9 % | 6 % | 7 % | 7 % | 7 % | 3 % | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Financial income | -1 | 191 | 312 | 199 | 700 | 799 | -------------------------------------------------------------------------------- | Financial expenses | -57 | -53 | -51 | -85 | -247 | -284 | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | PROFIT BEFORE TAX | 2 382 | 1 973 | 2 151 | 2 412 | 8 918 | 3 424 | -------------------------------------------------------------------------------- | % of net sales | 9 % | 7 % | 7 % | 7 % | 8 % | 3 % | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Income taxes | -536 | -478 | -517 | -717 | -2 248 | -571 | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | PROFIT FOR THE | 1 845 | 1 495 | 1 634 | 1 696 | 6 670 | 2 853 | | PERIOD | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 7 % | 5 % | 6 % | 5 % | 6 % | 3 % | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Breakdown | | | | | | | -------------------------------------------------------------------------------- | Minority interest | 0 | 0 | 0 | 0 | 0 | 3 | -------------------------------------------------------------------------------- | Share of profit | 1 845 | 1 495 | 1 634 | 1 696 | 6 670 | 2 850 | | that belongs to | | | | | | | | owners of the | | | | | | | | parent company | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Earnings per share, | | | | | | | | EUR | | | | | | | -------------------------------------------------------------------------------- | Undiluted earnings | 0,46 | 0,37 | 0,41 | 0,44 | | | | per share | | | | | | | -------------------------------------------------------------------------------- | Diluted earnings | 0,46 | 0,37 | 0,41 | 0,44 | | | | per share | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Shares (1 000 pcs) | | | | | | | -------------------------------------------------------------------------------- | Adjusted average | 4 005 | 4 005 | 4 005 | 3 867 | | | | number of shares | | | | | | | -------------------------------------------------------------------------------- | Adjusted average | 4 005 | 4 005 | 4 005 | 3 867 | | | | number of shares, | | | | | | | | diluted | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | THE LARGEST SHAREHOLDERS 30, September 2007 | -------------------------------------------------------------------------------- | | | Number | | Number of | | Total | | | | of | | A-shares | | number of | | | | K-shares | | (1 vote | | shares | | | | (20 | | per share) | | | | | | votes | | | | | | | | per | | | | | | | | share) | | | | | -------------------------------------------------------------------------------- | 1. Sundholm Göran | | | | 515 000 | | 515 000 | -------------------------------------------------------------------------------- | 2. Hietala Pekka Tapani | | | | 181 900 | | 181 900 | -------------------------------------------------------------------------------- | 3. Suominen Jussi Matias | | 48 000 | | 74 759 | | 122 759 | -------------------------------------------------------------------------------- | 4. Suominen Tiina | | 48 000 | | 74 759 | | 122 759 | | Sini-Maria | | | | | | | -------------------------------------------------------------------------------- | 5. Mustakallio Kari Pauli | | 60 480 | | 60 009 | | 120 489 | -------------------------------------------------------------------------------- | 6. Kirmo Kaisa Marketta | | 50 280 | | 65 092 | | 115 372 | -------------------------------------------------------------------------------- | 7. Suominen Pekka Matias | | 48 000 | | 64 159 | | 112 159 | -------------------------------------------------------------------------------- | 8. Siivonen Osku Pekka | | 50 640 | | 53 539 | | 104 179 | -------------------------------------------------------------------------------- | 9. Keskiaho Kaija Leena | | 33 600 | | 51 116 | | 84 716 | -------------------------------------------------------------------------------- | 10. Särkijärvi Riitta | | 60 480 | | 22 009 | | 82 489 | -------------------------------------------------------------------------------- | 11. Mustakallio Mika | | 39 750 | | 42 670 | | 82 420 | -------------------------------------------------------------------------------- | 12. Mustakallio Risto | | 42 240 | | 35 862 | | 78 102 | -------------------------------------------------------------------------------- | 13. Mustakallio Ulla | | 47 240 | | 30 862 | | 78 102 | | Sinikka | | | | | | | -------------------------------------------------------------------------------- | 14. Sr Arvo Finland Value | | | | 64 358 | | 64 358 | -------------------------------------------------------------------------------- | 15. Mustakallio Marja | | 42 240 | | 20 662 | | 62 902 | | Helena | | | | | | | -------------------------------------------------------------------------------- | 16. Mustakallio Kai Henrik | | 47 240 | | 12 000 | | 59 240 | -------------------------------------------------------------------------------- | 17. Sr Eq Suomi Pienyhtiöt | | | | 56 531 | | 56 531 | -------------------------------------------------------------------------------- | 18. Kirmo Lasse Antti | | 30 000 | | 26 200 | | 56 200 | -------------------------------------------------------------------------------- | 19. Särkijärvi Timo Juha | | 12 000 | | 43 256 | | 55 256 | -------------------------------------------------------------------------------- | 20. Särkijärvi-Martinez Anu | | 12 000 | | 43 256 | | 55 256 | | Riitta | | | | | | | -------------------------------------------------------------------------------- | TOTAL | | 672 190 | | 1 537 999 | | 2 210 189 | -------------------------------------------------------------------------------- | Share of total amount of | | 67,8 % | | 51,0 % | | 55,2 % | | shares | | | | | | | -------------------------------------------------------------------------------- | Share of total voting | | 67,8 % | | 51,0 % | | 65,6 % | | rights | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Administrative registered | | | | 113 571 | | 113 571 | -------------------------------------------------------------------------------- | OTHER SHAREHOLDERS | | 318 971 | | 1 362 027 | | 1 680 998 | -------------------------------------------------------------------------------- | TOTAL | | 991 161 | | 3 013 597 | | 4 004 758 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | MANAGEMENT'S SHAREHOLDING | | 98 990 | | 89 788 | | 188 778 | -------------------------------------------------------------------------------- | Share of total amount of | | 10,0 % | | 3,0 % | | 4,7 % | | shares | | | | | | | -------------------------------------------------------------------------------- | Share of total voting | | 10,0 % | | 3,0 % | | 9,1 % | | rights | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | SHARE INFORMATION | | | | | | -------------------------------------------------------------------------------- | | | | 30.9. | 30.9. | 31.12. | -------------------------------------------------------------------------------- | | | | 2007 | 2006 | 2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Number of shares | | | | | | -------------------------------------------------------------------------------- | - Series K , ordinary | | | 991 161 | 991 161 | 991 161 | | shares (20 votes / | | | | | | | share) | | | | | | -------------------------------------------------------------------------------- | - Series A , 1 | | | 3 013 597 | 2 898 297 | 3 013 597 | | vote/share | | | | | | -------------------------------------------------------------------------------- | Number of shares total | | | 4 004 758 | 3 889 458 | 4 004 758 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Trading of series A | | | | | | | shares | | | | | | -------------------------------------------------------------------------------- | Trading of shares, pcs | | | 805 203 | 676 432 | 1 088 288 | -------------------------------------------------------------------------------- | Trading of shares, EUR | | | 11,3 | 10,1 | 15,4 | | million | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Exchange rate of | | | | | | | series A shares | | | | | | -------------------------------------------------------------------------------- | At the end of report | | | 13,20 | 12,90 | 12,85 | | period, EUR | | | | | | -------------------------------------------------------------------------------- | Highest price during | | | 15,45 | 17,60 | 17,60 | | the report period, EUR | | | | | | -------------------------------------------------------------------------------- | Lowest price during | | | 12,40 | 11,60 | 11,60 | | the report period, EUR | | | | | | -------------------------------------------------------------------------------- | Average price during | | | 13,88 | 14,90 | 14,03 | | the report period, EUR | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Market value of | | | | | | | capital stock | | | | | | -------------------------------------------------------------------------------- | (Series K shares | | | | | | | valued at the value of | | | | | | | series A shares at the | | | | | | | end of reporting | | | | | | | period. | | | | | | -------------------------------------------------------------------------------- | - Series K shares, EUR | | | 13,1 | 12,8 | 12,7 | | million | | | | | | -------------------------------------------------------------------------------- | - Series A shares, EUR | | | 39,8 | 37,4 | 38,7 | | million | | | | | | -------------------------------------------------------------------------------- | Total, EUR million | | | 52,9 | 50,2 | 51,5 | -------------------------------------------------------------------------------- RAUTE CORPORATION Board of Directors FURTHER INFORMATION: Mr. Tapani Kiiski, President and CEO, Raute Corporation, tel. +358 3 829 3560, mobile +358 400 814 148 Ms. Arja Hakala, CFO, Raute Corporation, tel. +358 3 829 3293, mobile +358 400 710 387 RAUTE IN BRIEF: Raute is a technology company serving the wood products industry worldwide. Its most important customers are the plywood and LVL industries. The company is the world market leader as a supplier of mill-scale projects to these customer industries. The full-service concept also includes technology services, with which Raute supports its customers throughout the entire life cycle of their investment. Raute's head office and main production plant are in Nastola, Finland. Its other production plants are in the Vancouver area of Canada, in the Shanghai area of China, and in Iyväskylä and Kajaani, Finland. Net sales in 2006 were EUR 106 million and the number of personnel 540. More information on the company can be found at www.raute.com. DISTRIBUTION: OMX Nordic Exchange Helsinki, main media, www.raute.com |
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