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2011-08-09 08:05:15 CEST 2011-08-09 08:06:20 CEST REGULATED INFORMATION Raute - Interim report (Q1 and Q3)RAUTE CORPORATION - INTERIM REPORT JANUARY 1 - JUNE 30, 2011Nastola, Finland, 2011-08-09 08:05 CEST (GLOBE NEWSWIRE) -- RAUTE CORPORATION INTERIM REPORT AUGUST 9, 2011 AT 9:00 a.m. RAUTE CORPORATION - INTERIM REPORT JANUARY 1 - JUNE 30, 2011 - The Group's net sales amounted to EUR 37.8 million (MEUR 30.0), up 26% on the comparison year. Order intake was EUR 39 million (MEUR 34). - Operating result amounted to EUR -0.6 million (MEUR -1.3). Result before taxes was EUR -0.8 million (MEUR -1.3). - Earnings per share (undiluted) were EUR -0.19 (EUR -0.27). - Second-quarter net sales amounted to EUR 23.1 million and the operating result was EUR 0.8 million. Order intake was EUR 9 million and the order book stood at EUR 35 million at the end of the reporting period. - The outlook for financial performance remains unchanged. Net sales for 2011 will see year-on-year growth and the operating result is expected to be positive. TAPANI KIISKI, PRESIDENT AND CEO: UNCERTAINTY SURROUNDING THE IMPROVEMENT OF DEMAND Our net sales saw growth in the second quarter and were almost back to their pre-recession level, and our operating result rose into the black. The loss we posted for the entire first part of 2011 was only half of last year's figure. Profitability in the second quarter was still somewhat weakened by drawn-out project implementation. Delays in achieving production capacity for mill-scale deliveries and any additional costs that might be incurred from them are major risks in the project business. The trend in the demand for wood products has remained favorable in the past few months, except in North America, where construction is still at a very low ebb. Thanks to the brighter market situation, the wood products industry has stepped up its utilization rates and is more willing to invest. The rise in capacity utilization in the wood products industry has been most clearly evident in the demand for our technology services. During the first half of the year, the wood products industry announced investment plans targeting to build new capacity in South America. In our view, uncertainty about the development of the financial markets, the threat of a new recession, and the search for suitable financing solutions have caused the wood products industry to deliberate longer on investment decisions, especially in Europe and Russia. Our projects that are currently under negotiation now once again involve greater uncertainty in terms of implementation and scheduling. In spite of this, we expect to see a positive trend in our order intake in the next few months, paving the way for better profitability and a positive full-year result for 2011. SECOND QUARTER OF 2011 Order intake and order book Order intake during the second quarter totaled EUR 9 million (MEUR 9). Technology services accounted for EUR 4 million (MEUR 5) of the new orders. Order intake remained low because many of the projects that had been expected to get the go-ahead in the second quarter were pushed back due to uncertainties concerning market trends and financing. The most significant new orders were for the delivery of an automated veneer patching line and peeling line to Russia. The order book declined by EUR 13 million during the past quarter, amounting to EUR 35 million (MEUR 28) at the end of the reporting period. Net sales Second-quarter net sales amounted to EUR 23.1 million (MEUR 19.5). The brighter market prospects of the company's customer industries increased demand, which contributed to net sales growth. Technology services accounted for 26 percent of total net sales (24%). Result and profitability The operating result for the second quarter was EUR 0.8 million positive (MEUR 0.1 positive), representing 4 percent (1%) of net sales. The second-quarter result was EUR 0.5 million positive (MEUR 0.1 negative) and earnings per share were EUR 0.13 (EUR -0.03). RAUTE CORPORATION - INTERIM REPORT JANUARY 1 - JUNE 30, 2011 BUSINESS ENVIRONMENT Market situation in customer industries Raute's customers in the veneer, plywood, and LVL (Laminated Veneer Lumber) industries are engaged in the manufacturing of wood products used in investment commodities and are thus highly dependent on cyclical fluctuations in construction, housing-related consumption, international trade, and transportation. During the reporting period, the market situation in Raute's customer industries continued to improve gradually, with the exception of North America. Outside North America, most plywood and LVL manufacturers are operating at either good or normal utilization rates. However, in North America, the housing market and construction have once again headed downward, and market demand for wood products remained very muted. Demand for wood products technology and technology services During the reporting period, demand for wood products technology and technology services was at a normal level in view of the market situation in the customer industries. Demand focused on smaller projects and especially on modernizations, as is typical now that the market is recovering. Numerous larger projects - both individual production lines and complete mills - have been under prolonged negotiation and planning in many market areas. Customers will decide to go ahead with these projects only once they are confident that the market has recovered permanently. ORDER INTAKE AND ORDER BOOK Raute's business consists of providing project deliveries and technology services to the wood products industry. Project deliveries encompass complete mills, production lines, and individual machines and equipment. Technology services include maintenance, spare parts services, modernization, consulting, training, and reconditioned machinery. Order intake during the reporting period totaled EUR 39 million (MEUR 34). 59 percent of the new orders came from Russia (9%), 25 percent from Europe (22%), 7 percent from South America (3%), 7 percent from North America (15%), and 2 percent from Asia-Pacific (51%). The most significant new order was received in January for the delivery of plywood mill machinery valued at more than EUR 12 million to Russia. The low order intake from Asia and South America during the reporting period can be explained by customers' scheduling of their projects. Technology services accounted for EUR 11 million (MEUR 8) of the order intake. During the reporting period, the order book grew by EUR 2 million, amounting to EUR 35 million (MEUR 28) at its end. COMPETITIVE POSITION Raute's competitive position is good. Raute's solutions help customers in securing their delivery and service capabilities. In such investments, the supplier's end-to-end expertise and extensive, wide-ranging technology offering play a key role. The competitive edge provided by Raute is also a major draw when customers select their cooperation partners. Furthermore, Raute's strong financial position enhances its credibility and improves its competitive position in the implementation of long-term investment projects. NET SALES Net sales for the reporting period, EUR 37.8 million (MEUR 30.0), were up 26 percent year-on-year. Demand increased in step with the brighter market prospects of the company's customer industries, contributing to net sales growth. Of the total net sales for the reporting period, Russia accounted for 33 percent (49%), Asia-Pacific for 25 percent (19%), North America for 10 percent (15%), Europe for 26 percent (13%), and South America for 6 percent (4%). Net sales of technology services grew by 39 percent and accounted for 33 percent of total net sales (30%). RESULT AND PROFITABILITY The operating result was EUR 0.6 million negative (MEUR 1.3 negative), representing -2 percent of net sales (-4%). The company posted a loss for the reporting period due to additional costs incurred from the drawn-out implementation of some projects that were in the installation phase. The result before taxes for the reporting period was EUR 0.8 million negative (MEUR 1.3 negative) and the result was EUR 0.7 million negative (MEUR 1.1 negative). Earnings per share (undiluted) were EUR -0.19 (EUR -0.27). CASH FLOW AND BALANCE SHEET The Group's financial position is good. At the end of the reporting period, gearing was -36 percent (-75%) and the equity ratio was 50 percent (45%). Other fluctuations in balance sheet items and the key figures based on them are due to differences in the timing of customer payments and the cost accumulation from project deliveries, which is typical of project business. The Group's cash and cash equivalents, including financial assets recognized at fair value through profit or loss, amounted to EUR 19.1 million (MEUR 32.8) at the end of the reporting period. Operating cash flow was EUR -0.8 million (MEUR +6.9). Cash flow from investment activities was EUR -0.6 million (MEUR -0.5). Cash flow from financing activities was EUR -3.3 million (MEUR -1.1), including dividends of EUR 1.2 million (MEUR 0.0). At the end of the reporting period, interest-bearing liabilities amounted to EUR 11.1 million (MEUR 16.5), of which EUR 3.3 million (MEUR 4.4) were current interest-bearing liabilities. The parent company Raute Corporation has a EUR 10 million commercial paper program, which allows the company to issue commercial papers maturing in less than one year. The company also has unused bilateral credit facilities totaling EUR 10 million with two different Nordic banks. EVENTS DURING THE REPORTING PERIOD Raute Corporation has published stock exchange releases on the following events: January 20, 2011 Raute received new orders valued at over EUR 12 million from Russia. April 13, 2011 Raute Corporation's 2011 Annual General Meeting was held in April. RESEARCH AND DEVELOPMENT COSTS AND CAPITAL EXPENDITURE Raute seeks to be the leading technology supplier in its field and to invest strongly in continuous research and development, with a special focus on plywood and LVL manufacturing technology and automation and instrumentation applications that support these technologies, particularly machine vision. Research and development costs totaled EUR 0.8 million (MEUR 0.8) during the reporting period, representing 2.1 percent of net sales (2.6%). Investments totaled EUR 0.7 million (MEUR 1.7) during the reporting period. PERSONNEL At the end of the reporting period, the Group's personnel numbered 486 (522). Group companies outside Finland accounted for 25 percent (25%) of employees. Converted to full-time employees (“effective headcount”), the average number of employees was 457 (423) during the reporting period. 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 and A shares confer equal rights to dividends and company assets. Series K shares can be converted to series A shares under the terms set out in Article 3 of the Articles of Association. If a series K share is transferred to a new owner who has not previously held series K shares, the new owner must notify the Board of Directors of this in writing and without delay. Other holders of series K shares have the right to redeem the share under the terms specified in Article 4 of the Articles of Association. Raute Corporation's series A shares are listed on NASDAQ OMX Helsinki Ltd. 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 NASDAQ OMX Helsinki Ltd. The company's market capitalization at the end of the reporting period was EUR 39.3 million (MEUR 29.5), with series K shares valued at the closing price of the series A shares on June 30, 2011, which was EUR 9.81 (EUR 7.37). The Annual General Meeting held on April 13, 2011 authorized the company's Board of Directors to decide on the buyback of Raute Corporation series A shares with distributable funds and on a directed share issue. The maximum number of shares to be repurchased and issued is 400,000. The Board of Directors did not exercise the authorization during the reporting period. The company did not hold any treasury shares during the reporting period. STOCK OPTION SCHEME 2010 The Annual General Meeting held on March 31, 2010 resolved to issue a maximum of 240,000 stock options. In accordance with the authorization granted by the Annual General Meeting, the Board of Directors issued a total of 75,000 stock options marked with the symbol 2010 B to key employees of the Group on May 31, 2011. The share subscription period with stock options 2010 B will be from March 1, 2014 to March 31, 2017 and the subscription price will be EUR 9.83. Earlier, on May 5, 2010, 80,000 stock options 2010 A were granted to key employees of the Group under this stock option scheme. The terms and conditions of the stock option scheme are available on the company's Internet site. SHAREHOLDERS The number of shareholders totaled 1,787 at the beginning of the year and 1,763 at the end of the reporting period. Series K shares are held by 52 private individuals (46). Management held 7.1 percent (7.0%) of the company's shares and 13.3 percent (12.5%) of the votes. Nominee-registered shares accounted for 2.1 percent (2.1%) of shares. No flagging notifications were given to the company during the reporting period. CORPORATE GOVERNANCE Raute Corporation complies with the Finnish Corporate Governance Code for listed companies issued by the Securities Market Association on June 15, 2010. Raute deviates from Recommendation 22 on appointing members to the Appointments Committee in that one member to the Committee is elected from outside the Board of Directors, as per the company's Administrative Instructions, from among the representatives of major shareholders who have significant voting rights. In the Board's view, it has a good reason to deviate from the recommendation due to the company's ownership structure; when selecting Board members, the company can thus meet the expectations of its major shareholders early in the preparation phase. The main points of Raute Corporation's corporate governance principles are presented on the company's Internet site at www.raute.com. Raute Corporation's Corporate Governance Statement 2010 has been drawn up separately from the Board of Directors' report and is published on the company's Internet site. ANNUAL GENERAL MEETING 2011 Raute Corporation's Annual General Meeting was held on April 13, 2011. The Annual General Meeting confirmed the 2010 financial statements, granted discharge from liability to those accountable, and decided to distribute a dividend of EUR 0.30 per share. The Annual General Meeting elected the Board of Directors for the term of office ending at the next Annual General Meeting in 2012. Mr. Erkki Pehu-Lehtonen, M.Sc. (Eng.), was elected as Chairman of the Board, Ms. Sinikka Mustakallio, Researcher, as Vice Chair, and Mr. Risto Hautamäki, M.Sc. (Eng.), Mr. Ilpo Helander, M.Sc. (Eng.), Mr. Mika Mustakallio, M.Sc. (Econ.), and Mr. Pekka Suominen, M.Sc. (Econ.) as members of the Board. The Annual General Meeting elected authorized public accounting company PricewaterhouseCoopers Oy as auditors with Mr. Janne Rajalahti (Authorized Public Accountant) as the principal auditor. The Annual General Meeting decided that the Chairman of the Board will be paid remuneration of EUR 40,000 and the Vice Chair of the Board and Board members EUR 20,000 for the term of office, and that the Board members will be reimbursed for their travel expenses as set out in the company's travel policy. Compensation will be paid to the company's auditors on the basis of reasonable invoices. The Annual General Meeting authorized the Board of Directors to decide on the buyback of Raute Corporation series A shares with distributable funds and on a directed share issue of series A shares. The maximum number of shares to be repurchased and issued is 400,000. A stock exchange release detailing the decisions of the Annual General Meeting was published on April 13, 2011. DIVIDENDS FOR THE 2010 FINANCIAL YEAR The Annual General Meeting held on April 13, 2011 decided to pay a dividend of EUR 0.30 per share for the financial year. The dividends amounted to a total of EUR 1.2 million, of which series A shares accounted for EUR 904,079.10 (EUR 0) and series K shares EUR 297,348.30 (EUR 0). The dividend payout date was April 27, 2011. BOARD OF DIRECTORS AND BOARD COMMITTEES At the Annual General Meeting held on April 13, 2011, Mr. Erkki Pehu-Lehtonen, M.Sc. (Eng.), was elected as Chairman of the Board of Directors, Ms. Sinikka Mustakallio, Researcher, as Vice Chair, and Mr. Risto Hautamäki, M.Sc. (Eng.), Mr. Ilpo Helander, M.Sc. (Eng.), Mr. Mika Mustakallio, M.Sc. (Econ.), and Mr. Pekka Suominen, M.Sc. (Econ.) as members of the Board. Based on the evaluation of independence, Mr. Erkki Pehu-Lehtonen (Chairman) and Mr. Risto Hautamäki, Mr. Ilpo Helander, Mr. Mika Mustakallio, and Mr. Pekka Suominen (members) are independent of the company. Ms. Sinikka Mustakallio (Vice Chair), who chaired Raute's Supervisory Board from 1996 to 1998 and has acted as a member of the Board since 1998, is dependent on the company. The Chairman of the Board (Mr. Erkki Pehu-Lehtonen) and two Board members (Mr. Ilpo Helander and Mr. Risto Hautamäki) are independent of major shareholders. Raute Corporation's Board of Directors has an Appointments Committee and a Working Committee. The Appointments Committee is chaired by Mr. Erkki Pehu-Lehtonen and its members are Ms. Sinikka Mustakallio and Mr. Ville Korhonen, who was elected by the major shareholders from amongst their number. The Working Committee is chaired by Mr. Erkki Pehu-Lehtonen and its members are Ms. Sinikka Mustakallio and Mr. Risto Hautamäki. The Audit Committee's tasks are handled by the Board of Directors. BUSINESS RISKS Risks in the near term continue to be driven by the global economic situation and uncertainty concerning its development. Threats related to the indebtedness of certain European countries and the United States have led to mounting nervousness about the trends in the global economy and financial markets. During the reporting period, there have been no essential changes in the business risks described in the 2010 Board of Directors' report and financial statements. The most significant risks for Raute in the near term are related to the development of net sales and profitability. OUTLOOK FOR 2011 Raute's business operations are characterized by the sensitivity of investment demand to cyclical fluctuations in the global economy and the financial markets. The outlook for the world economy and financial markets and their permanent recovery from the financial crisis remains fraught with uncertainty despite favorable development in many markets. The market situation for Raute's customer industries is expected to remain somewhat uncertain. Demand for wood products has not yet permanently recovered to its pre-recession level. That said, concerns about the continuation and strength of recovery have increased in recent months due to the threats posed by the indebtedness of several European countries and the United States. Demand for investments and services in the wood products industry is not expected to see a permanent recovery to its pre-recession level in the near future. However, upgrade investments in the plywood industry to ensure quality and maintain market shares will probably continue to increase. Production line and mill-scale investment projects are being planned in several market areas. Their implementation and timing will depend on how financing is arranged for customer projects in some market areas and whether the market situation for wood products continues to develop favorably. Thanks to its strong financial and market position and the development measures it has carried out, Raute is well poised to respond to growing demand once the markets recover. The implemented adaptation measures have led to a lighter cost structure and business is now more profitable than before, even in a difficult market situation. Raute's profit outlook for 2011 remains unchanged. As a result of the order book and projects under negotiation, net sales for 2011 will increase from the previous year. The operating result is expected to be positive. TABLES SECTION OF THE INTERIM REPORT The figures for the financial year 2010 presented in the figures section of the interim financial report have been audited. The interim figures presented in the interim financial report have not been audited. CONSOLIDATE Note 1.4.-30.6. 1.4.-30.6. 1.1.-30.6 1.1.-30.6. 1.1.-31.1 D STATEMENT . 2. OF COMPREHESIV 2011 2010 2011 2010 2010 E INCOME (EUR 1 000) NET SALES 3, 4, 5 23 136 19 546 37 763 29 982 62 867 Other 68 120 100 139 4 580 operating income Change in inventorie s of finished goods and 723 -87 818 -419 351 work in progress Materials -13 891 -10 612 -20 958 -14 283 -32 679 and services Expenses 15 -6 137 -6 211 -12 184 -11 598 -23 467 from employee benefits Depreciatio -538 -459 -1 080 -1 096 -2 250 n and amortizati on Other -2 547 -2 194 -5 087 -4 011 -8 091 operating expenses Total -23 113 -19 476 -39 310 -30 989 -66 487 operating expenses OPERATING 814 103 -629 -1 287 1 311 PROFIT % of net 4 1 -2 -4 2 sales Financial 313 185 523 561 728 income Financial -362 -256 -680 -600 -917 expenses PROFIT 764 33 -785 -1 327 1 122 (LOSS) BEFORE TAX % of net 3 0 -2 -4 2 sales Income 7 -244 -156 40 253 36 taxes PROFIT 520 -123 -745 -1 074 1 158 (LOSS) FOR THE PERIOD % of net 2 -1 -2 -4 2 sales Other comprehens ive income items: Exchange differences on -2 -37 -37 -48 -20 translating foreign operations Cash flow - 16 - 8 -19 hedging Income tax - -4 - -2 5 related to cash flow hedges Comprehensi ve income items for the period, -2 -25 -37 -42 -34 net of tax COMPREHENSIVE PROFIT 518 -149 -782 -1 116 1 124 (LOSS) FOR THE PERIOD Profit (loss) for the period attributab le to Equity 520 -123 -745 -1 074 1 158 holders of the Parent company Comprehensi ve profit (loss) for the period attributabl e to Equity 518 -149 -782 -1 116 1 124 holders of the Parent company Earnings per share for profit (loss) attributable to Equity holders of the Parent company, EUR Undiluted 0,13 -0,03 -0,19 -0,27 0,29 earnings per share Diluted 0,13 -0,03 -0,19 -0,27 0,29 earnings per share Shares, 1 000 pcs Adjusted 4 005 4 005 4 005 4 005 4 005 average number of shares Adjusted 4 012 4 055 4 012 4 030 4 005 average number of shares diluted CONSOLIDATE Note 30.6. 30.6. 31.12. D BALANCE SHEET (EUR 1 000) 2011 2010 2010 ASSETS Non-current assets Intangible 9 1 102 1 585 1 341 assets Property, 9 8 338 9 301 8 913 plant and equipment Other 789 487 497 financial assets Receivables 567 - - Deferred 1 565 1 977 1 849 tax assets Total 12 362 13 350 12 599 Current assets Inventories 6 014 4 883 4 574 Accounts 5 15 113 11 692 11 770 receivable s and other receivable s Cash and 19 084 32 834 24 090 cash equivalent s Total 40 211 49 409 40 435 Non-current - 1 038 - assets classified as held for sale Total - 1 038 - TOTAL 52 573 63 796 53 034 ASSETS SHAREHOLDER S' EQUITY AND LIABILITIE S Equity attributab le to Equity holders of the Parent company Share 8 010 8 010 8 010 capital Share 6 498 6 498 6 498 premium Other 15 83 312 36 reserves Exchange -2 7 35 difference s Retained 8 447 8 196 8 490 earnings Profit -745 -1 074 1 158 (loss) for the period Share of shareholde rs' equity that belongs to the 22 290 21 948 24 227 owners of the Parent company Total 22 290 21 948 24 227 shareholde rs' equity Non-current liabilitie s Provisions 36 58 57 Deferred - 262 337 tax liabilitie s Non-current 11 7 768 12 253 10 000 interest-b earing liabilitie s Total 7 804 12 573 10 394 Current liabilitie s Provisions 898 1 017 612 Pension 94 131 91 obligation s Current 11 3 315 4 215 4 439 interest-b earing liabilitie s Advance 5 7 559 14 624 5 243 payments received Trade and 10 613 9 289 8 028 other payables Total 22 479 29 275 18 413 Total 30 283 41 848 28 807 liabilitie s TOTAL SHAREHOLDERS' 52 573 63 796 53 034 EQUITY AND LIABILITIES CONSOLIDATE 1.1.-30.6. 1.1.-30.6. 1.1.-31.1 D STATEMENT 2. OF CASH FLOWS (EUR 1 000) 2011 2010 2010 CASH FLOW FROM OPERATING ACTIVITIES Proceeds 37 253 36 122 57 338 from sales Proceeds 37 100 121 from other operating income Payments of -37 933 -28 681 -63 416 operating expenses Cash flow -643 7 541 -5 958 before financial items and taxes Interests and other -274 -761 -650 operating financial expenses paid Interests 85 35 394 and other income received Dividends 42 87 118 received Income -38 8 -18 taxes paid NET CASH FLOW FROM -828 6 908 -6 114 OPERATING ACTIVITIES (A) CASH FLOW FROM INVESTING ACTIVITIES Capital -447 -1 484 -2 067 expenditur e in tangible and intangible assets Purchases - -1 -11 of assets-for -sale as investment s Purchase of -293 - - investment s Proceeds from sale of 93 990 6 448 tangible and intangible assets NET CASH FLOW FROM -646 -495 4 370 INVESTING ACTIVITIES (B) CASH FLOW FROM FINANCING ACTIVITIES Decrease of 1 000 1 000 2 000 non-curren t and current receivable s Repayments -115 -100 -228 of current borrowings Increase of 6 000 - - non-curren t borrowings Repayments -9 000 -2 000 -4 088 of non-curren t borrowings Dividends -1 201 - - paid NET CASH FLOW FROM -3 317 -1 099 -2 316 FINANCING ACTIVITIES (C) NET CHANGE IN CASH AND -4 791 5 314 -4 060 CASH EQUIVALENTS (A+B+C) increase (+)/decrea se (-) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE 24 090 27 900 27 900 PERIOD* EFFECTS OF -216 -380 251 EXCHANGE RATE CHANGES ON CASH CASH AND CASH EQUIVALENT S AT THE END OF THE 19 084 32 834 24 090 PERIOD* CASH AND CASH EQUIVALENTS IN THE BALANCE SHEET AT THE END OF THE PERIOD Cash and 19 084 32 834 24 090 cash equivalent s TOTAL 19 084 32 834 24 090 *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 (EUR 1 000) capital premium reserves rate earnings diff. EQUITY Jan. 8 010 6 498 36 35 9 648 1, 2011 Profit - - - - -745 (loss) for the period Comprehensi ve profit (loss) for the period: Exchange difference s on translatin g foreign - - - -37 - operations Cash flow - - - - - hedging, net of tax Total comprehens ive profit (loss) for the 0 0 0 -37 -745 period Dividends - - - - -1 201 Equity-sett - - 47 - - led share-base d transactio ns EQUITY June 8 010 6 498 83 -2 7 701 30, 2011 CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (continue) To the owners of the Parent EQUITY (EUR 1 000) company TOTAL EQUITY Jan. 24 227 24 227 1, 2011 Profit -745 -745 (loss) for the period Comprehensi ve profit (loss) for the period: Exchange difference s on translatin g foreign -37 -37 operations Cash flow - - hedging, net of tax Total comprehens ive profit (loss) for the -782 -782 period Dividends -1 201 -1 201 Equity-sett 47 47 led share-base d transactio ns EQUITY June 22 290 22 290 30, 2011 CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY Share Share Other Exchange Retained (EUR 1 000) capital premium funds rate earnings diff. EQUITY Jan. 8 010 6 498 294 55 8 196 1, 2010 Profit - - - - -1 074 (loss) for the period Comprehensi ve profit (loss) for the period: Exchange difference s on translatin g foreign - - - -48 - operations Cash flow - - 6 - - hedging, net of tax Total comprehens ive profit (loss) for the 0 0 6 -48 -1 074 period Dividends - - - - - Equity-sett - - 12 - - led share-base d transactio ns EQUITY June 8 010 6 498 312 7 7 122 30, 2010 CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (continue) To the owners of the Parent EQUITY (EUR 1 000) company TOTAL EQUITY Jan. 23 053 23 053 1, 2010 Profit -1 074 -1 074 (loss) for the period Comprehensi ve profit (loss) for the period: Exchange difference s on translatin g foreign -48 -48 operations Cash flow 6 6 hedging, net of tax Total comprehens ive profit (loss) for the -1 116 -1 116 period Dividends - - Equity-sett 12 12 led share-base d transactio ns EQUITY June 21 948 21 948 30, 2010 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1. General informatio n Raute Group is a globally operating technology corporation which manufactures complete mills, production lines and single machines for the veneer, plywood and LVL industries. Raute's technology offering covers the customers' entire production process, ranging from raw material processing to the finishing and packaging of end products. Additionally, Raute's full service concept includes technology services, such as maintenance, spare parts services, equipment modernization, consulting, training and sales of reconditioned machinery. The Group has production units in Finland, Canada and China. The company's sales network has a global reach. Raute Group's Parent company is a Finnish public limited liability company, Raute Corporation, established in accordance with Finnish law (Business ID FI01490726). Its series A shares are quoted on NASDAQ OMX Helsinki Ltd., under Industrials. Raute Corporation is domiciled in Lahti, Finland. The address of its registered office is Rautetie 2, FI-15550 Nastola, Finland, and its postal address is P. O. Box 69, FI-15551 Nastola, Finland. The Consolidated financial statements are available online at www.raute.com or at the head office of the Parent company, Rautetie 2, FI-15550 Nastola, Finland. Raute Corporation's Board of Directors has on August 9, 2011 reviewed the Group's Interim financial report for January 1 - June 30, 2011, and approved the Interim financial report for January 1 - June 30, 2011 to be published in compliance with this release. 2. Accounting principles Raute Corporation's Interim financial report January 1 - June 30, 2011 has been prepared in accordance with standard IAS 34 Interim Financial Reporting. The Interim financial report does not contain full notes and other information presented in the financial statements. Therefore, the Interim financial report should be read in conjunction with the Financial statements published for 2010. Raute Corporation's Interim financial report for January 1 - June 30, 2011 has been prepared applying the accounting principles described in the Annual financial statements for 2010 and the following new and amended standards and interpretations which have taken effect on January 1, 2011 or later: - IAS 24 Related Party Disclosures, revised - IAS 32 Classification of Rights Issues, amendment - IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments - IFRIC 14 Prepayments of a Minimum Funding Requirement, amendment - Annual Improvements to standards and interpretations. The new standards, amendments and interpretations do not have any significant impact on the Group's Interim financial report. All the monetary figures presented in the Interim financial report are in thousand euros, unless otherwise stated. Due to the rounding of the figures in the Interim financial statement tables, the sums of figures may deviate from the sum total presented in the table. Figures in parentheses refer to the corresponding figures in the comparison period. The preparation of financial statements according to international financial reporting standards requires management to use estimates and assumptions. In addition, the management must exercise its judgement in selecting and applying the accounting policies of the Interim financial report. These estimates and assumptions affect the assets and liabilities in the Group's balance sheet, the disclosure ofcommitments and possible assets in the consolidated financial statements, and income and expenses for the period. Actual results may differ from the estimates. 3. Segment informatio n Operational segment Continuing operations of Raute Group belong to the wood products technology segment. Due to Raute's business model, operational nature and administrative structure, the operational segment to be reported as wood products technology segment is comprised of the whole Group and the information on the segment is consistent with that of the Group. 30.6. 30.6. 31.12. Wood 2011 2010 2010 products technology Net sales 37 763 29 982 62 867 Operating -629 -1 287 1 311 profit Assets 52 573 63 796 53 034 Liabilities 30 283 41 848 28 807 Capital 668 1 684 2 224 expenditur e Assets of 30.6. 30.6. 31.12. the wood products technology segment by 2011 % 2010 % 2010 % geographic al location Finland 46 652 89 56 363 88 44 006 83 North 2 868 5 4 522 7 3 730 7 America China 1 521 3 1 665 4 4 129 8 Russia 1 240 2 976 2 880 2 South 149 0 138 0 160 0 America Others 143 0 132 0 129 0 TOTAL 52 573 100 63 796 100 53 034 100 Capital 30.6. 30.6. 31.12. expenditur e of the wood products technology 2011 % 2010 % 2010 % segment by geographic al location Finland 656 98 214 13 590 27 North 3 0 1 445 86 1 606 72 America China 6 1 5 0 7 0 Russia - - - - - - South 1 0 20 1 21 1 America Others 1 0 - - - - TOTAL 668 100 1 684 100 2 224 100 4. Net sales The main part of the net sales is comprised of project deliveries related to wood products technology that are treated as long-term projects. The rest of the net sales is comprised of technology services provided to the wood products industry (spare parts, maintenance and modernization services as well as services provided to the development of customers' business). A significant part of the Group's net sales (project deliveries and modernization in technology services) includes both product and service sales. Breakdown of the Group's net sales into purely product and service sales cannot be presented reliably. At the end of the reporting period, the Group had two (2) customers, whose share of the Group's net sales temporarily exceeded 10 percent due to the nature of project business. Net sales 1.1.-30.6. 1.1.-30.6. 1.1.-31.12. by market 2011 % 2010 % 2010 % area Russia 12 545 33 14 554 49 18 627 30 Asia-Pacifi 9 514 25 5 684 19 18 442 29 c Finland 5 101 14 1 404 5 5 094 8 Rest of 4 450 12 2 531 8 8 805 14 Europe North 3 811 10 4 515 15 9 551 15 America South 2 244 6 1 294 4 2 212 4 America Others 98 0 - - 136 0 TOTAL 37 763 100 29 982 100 62 867 100 5. 30.6. 30.6. 31.12. Long-term projects 2011 2010 2010 Net sales Net sales 31 638 25 029 51 860 by percentage of completion Other net 6 125 4 953 11 007 sales TOTAL 37 763 29 982 62 867 Project revenues entered as income from currently undelivered long-term projects 53 852 38 601 50 784 recognized by percentage of completion Amount of long-term project 32 902 26 098 31 799 revenues not yet entered as income (order book) Specification of combined asset and liability items Advance 531 145 147 payments paid Advance payments received included 531 145 147 in inventories in the balance sheet Accrued income corresponding to 59 646 40 635 51 200 revenues by percentage of completion Advance payments -51 610 -35 442 -46 490 received from project customers Project receivables 8 036 5 193 4 710 included in current assets in the balance sheet Advance 7 559 14 624 5 243 payments in the balance sheet 6. Number 30.6. 30.6. 31.12. of personnel, persons 2011 2010 2010 Effective, 457 423 438 on average In books, 482 517 512 on average In books, 486 522 495 at the end of period - of which 120 128 129 personnel working abroad 7. Income taxes The taxes in the consolidated income statement include the taxes corresponding to the Group companies' taxable profit for the financial period as well as tax adjustments for the previous years and the change in deferred taxes. Current tax based on the taxable income is calculated on taxable income using the tax rate in force in each country. Deferred tax receivables are recognized to the extent that it is probable that taxable profits will be available against which temporary differences can be utilized. 8. Research and 30.6. 30.6. 31.12. development costs 2011 2010 2010 Research and 781 780 1 849 development costs for the period Amortization of 148 191 395 previously capitalized development costs Development costs - -17 -41 recognized as an asset in the balance sheet Research and development costs 928 953 2 203 entered as expenses for the period 9. Changes in 30.6. 30.6. 31.12. Intangible assets and in Property, plant and 2011 2010 2010 equipment Intangible assets Carrying amount at the beginning of 11 759 11 462 11 462 the period Exchange -15 46 71 rate difference s Additions 64 55 151 Other 23 57 75 reclassifi cations between items Carrying 11 830 11 620 11 759 amount at the end of the period Accumulated depreciation and -10 418 -9 630 -9 631 amortization at the beginning of the period Exchange 9 -24 -16 rate difference s Depreciatio -319 -380 -771 n for the period Accumulated depreciation and -10 729 -10 035 -10 418 amortization at the end of the period Book value of intangible assets, at 1 341 1 831 1 831 the beginning of the period Book value of 1 102 1 585 1 341 intangible assets, at the end of the period Property, plant and equipment Carrying 43 714 42 022 42 022 amount at the beginning of the period Exchange -546 1 772 1 696 rate difference s Additions 310 1 627 2 060 Disposals -31 -952 -1 989 Other -23 -1 091 -75 reclassifi cations between items Carrying 43 424 43 378 43 714 amount at the end of the period Accumulated depreciation and -34 800 -31 755 -31 755 amortization at the beginning of the period Exchange 474 -1 593 -1 568 rate difference s Depreciatio -758 -728 -1 478 n for the period Accumulated depreciation and -35 085 -34 076 -34 801 amortization at the end of the period Book value of Property, plant and equipment, at 8 913 10 267 10 267 the beginning of the period Book value of Property, plant and 8 338 9 301 8 913 equipment, at the end of the period 10. Related party transactions Raute Group's related parties consist of Board members, President and CEO, Presidents of the subsidiaries and Raute Corporation's Sickness Fund. Based on the authorization given by the Annual General Meeting 2010, the Board of Directors of Raute Corporation has granted stock options to the management. The main items of the terms and conditions of the stock option system granted during the financial year 2010 have been presented in the annual financial statement 2010. The main items of the terms and conditions of the stock option system granted during the reporting period 2011 and the impact of all granted option systems on the profit (loss) for the reporting period, have been presented in the note number 15. Group management's other employee benefits are presented in the annual financial statement. 11. Interest-bearing 30.6. 30.6. 31.12. liabilities 2011 2010 2010 Non-current interest-bearing 7 767 12 253 10 000 liabilities recognized at amortized cost Current 3 315 4 215 4 439 interest-bearing liabilities TOTAL 11 082 16 469 14 439 Maturities, non-current and current liabilities total Financial Under 1 1 - 5 years liability year Pension 2 000 3 000 loans (TyEL) Loans from 1 000 4 768 financial institutio ns Other loans 315 - Total 3 315 7 768 During the reporting period, Raute Corporation drew out a financial institution loan in the amount of SEK 52.9 million. The interest rate and currency risks of the interest-bearing currency-denominated loan are hedged with an interest rate and currency swap agreement. 12. Other 30.6. 30.6. 31.12. lease liabilitie s Group as 2011 2010 2010 lessee Minimum rents paid on the basis of other non-cancell able leases: - Within 551 568 547 one year - After the period of 1 051 1 071 1 157 more than one and less than five years - More than 610 778 701 five years TOTAL 2 212 2 418 2 406 The Group has rented in a part of office and production premises. The rental agreements are made for the time being or for the fixed-term. The agreements made for the fixed-term include an option to extend the rental period after the date of initial expiration . 13. Pledged assets and contingent liabilities Raute Group has non-current credit regulation agreements worth EUR 10 million (MEUR 10) of which EUR 8 million (MEUR 7) were unused on June 30, 2011. The unused credit limit is secured by a EUR 3 million business mortgage. Raute Corporation has a EUR 10 million (MEUR 10) domestic commercial paper program, which allows it to issue commercial papers maturing in less than one year. The program is arranged by Nordea Bank Finland Plc. 30.6. 30.6. 31.12. 2011 2010 2010 Pledged assets on behalf of the Parent company Loans from 5 768 - - financial institutio ns - Business 3 500 - - mortgages Pension 5 000 16 000 14 000 loans (TyEL) - Business 1 500 4 700 6 700 mortgages - Pledged - 2 000 1 000 assets - Credit 3 500 4 900 4 900 insurance agreements Other loans 100 100 100 - Real 101 134 134 estate mortgages Commercial bank guarantees on behalf of the Parent company and 12 426 28 235 10 154 subsidiari es Mortgage agreements on behalf of subsidiari es Loans from 215 216 227 financial institutio ns - Business 200 200 200 mortgages - Counter - - 3 100 guarantees Other lease 2 212 2 418 2 406 liabilitie s Loans and guarantees on behalf of the related party No loans are granted to the company's management. No pledges have been given or other commitments made on behalf of the company's management and shareholders. 14. Currency 30.6. 30.6. 31.12. derivatives and hedging instruments 2011 2010 2010 Currency derivatives are used for hedging purposes. Nominal values of forward contracts in foreign currency Economic hedging - Related 6 548 2 172 189 to financing - Related 137 542 283 to hedging of net sales Hedge accounting - Related - 1 465 - to the hedging of net sales Fair values of forward contracts in foreign currency Economic hedging - Related -4 26 - to financing - Related 2 -11 2 to the hedging of net sales Hedge accounting - Related - 7 - to the hedging of net sales Interest rate swap - Nominal 5 924 - - value - Fair -78 - - value 15. Share-base d payments The fair value of the options granted according to the 2010 stock option plan is recognized as an expense in the income statement during the earning period of the options. The options granted during the financial year 2010 are measured at fair value at their grant date May 5, 2010. Based on the authorization given by the Annual General Meeting, the Board of Directors of Raute Corporation has granted 75,000 stock options marked with symbol 2010 B to the Group's key persons during the reporting period. The granted options have been valued at fair value upon the grant date May 31, 2011. The conditions of the option system are: Arrangement Stock option Grant date May 31, 2011 Options 75,000 pcs granted Subscriptio EUR 9.83 n price Share price EUR 10.50 at the grant date Exercise 3 years period Subscriptio March 1, 2014 to March 31, 2017 n period Settlement Shares An expense of EUR 47 thousand was recognized for the options in the income statement during the reporting period. 16. Exchange rate used 1.1.-30.6 1.1.-30.6. 1.1.-31.1 . 2. Income 2011 2010 2010 statement, euros USD (US 1,4031 1,3285 1,3268 dollar) CAD 1,3703 1,3737 1,3665 (Canadian dollar) SGD 1,7654 1,8556 1,8080 (Singapore dollar) CLP 666,7786 696,0297 675,8537 (Chilean peso) RUB 40,1449 39,9227 40,2780 (Russian rouble) CNY 9,1760 9,0678 8,9805 (Chinese juan) 30.6. 30.6. 31.12. Balance 2011 2010 2010 sheet, euros USD (US 1,4453 1,2271 1,3362 dollar) CAD 1,3951 1,2890 1,3322 (Canadian dollar) SGD 1,7761 1,7160 1,7136 (Singapore dollar) CLP 675,7233 655,0369 626,1104 (Chilean peso) RUB 40,4000 38,2820 40,8200 (Russian rouble) CNY 9,3187 8,3245 8,7873 (Chinese juan) GROUP KEY 1.1.-30.6 1.1.-30.6. 1.1.-31.1 RATIOS . 2. 2011 2010 2010 Return on investment -0,6 -3,6 5,1 (ROI), % Return on -6,4 -9,5 4,9 equity (ROE), % Gearing, % -35,9 -74,6 -39,8 Equity 49,5 44,6 50,7 ratio, % Order book, 35 28 33 EUR million Order 39 34 72 intake, EUR million Exported portion of net 86,5 95,3 91,9 sales, % Change in 26,0 43,2 71,6 net sales, % Gross capital 0,7 1,7 2,2 expenditure, EUR million % of net 1,8 5,6 3,5 sales Research and 0,8 0,8 1,8 development costs, EUR million % of net 2,1 2,6 2,9 sales Earnings per share (EPS), EUR - undiluted -0,19 -0,27 0,29 - diluted -0,19 -0,27 0,29 Equity to 5,57 5,48 6,05 share, EUR Dividend per share - - 0,30 series K shares, EUR Dividend per share - - 0,30 series A shares, EUR Dividend - - 103,8 per profit, % Effective - - 3,1 dividend return, % Share price at the end 9,81 7,37 9,70 of the financial year, EUR Number of shares - weighted average, 1 4 005 4 005 4 005 000 pcs - diluted, 4 012 4 030 4 005 1 000 pcs Calculation of key ratios Return on Profit before tax + financial investment expenses (ROI), % = ---------------------------------------------------------- x 100 ---------------------- Shareholders' equity + interest-bearing financial liabilities (average of the period) Return on Profit/loss for the equity period (ROE), % = --------------------------------------------- x 100 --------------------------------- Shareholders' equity (average of the period) Interest-be Interest-bearing liabilities ./. (cash and cash aring net equivalents + financial liabilitie s = assets at fair value through profit or loss) Equity Shareholders' equity ratio, % = ---------------------------------- x 100 ---------------------------------- Balance Sheet total ./. advances received Earnings Profit for the period per share, undiluted, euros = ---------------------------------------------------------- ----------------------- Equity issue-adjusted average number of shares during the period Earnings Diluted profit for the per share, period diluted, euros = --------------------------------------------- ------------------------------------ Diluted equity issue-adjusted average number of shares Share of shareholders' equity belonging to the owners Equity to of the Parent company share, euros = --------------------------------------------- ----------------------------------- Undiluted number of shares at the end of the period Dividend Distributed dividend for the per share, financial year euros = ---------------------------------------------------------- ---------------------- Undiluted number of shares at the end of the financial year Dividend Dividend per share per profit, % = ---------------------- x 100 ---------------------- ----------- Earnings per share Effective Dividend per share dividend return, % = --------------------------------------------- x 100 ---------------------------------- Closing share price at the end of the financial year Price/earni Closing share price at the end of ngs ratio the period (P/E ratio) = ---------------------- ---------------------- -------------- Earnings per share Trend in share turnover, in volume and percentage figures (series A shares)= The trend in turnover of shares is given as the number of shares traded during the period and as the percentage of the average undiluted number of traded shares relative to issued share stock during the period. Market Undiluted number of shares at the end of the period (series A + value of series K shares) x capital stock = closing price of the share on the last day of the period Gearing, % Interest-bearing net financial = liabilities ---------------------- x 100 ---------------------- ------------------ Shareholders' equity DEVELOPMENT Q 2 Q 1 Q 4 Q 3 Rolling Rolling OF QUARTERLY 2011 2011 2010 2010 1.7.2010 1.7.2009 RESULTS (EUR 1 000) - - 30.6.2011 30.6.2010 NET SALES 23 136 14 627 13 396 19 490 70 648 45 690 Other 68 32 10 4 431 4 541 152 operating income Change in inventories of finished goods and 723 95 815 -45 1 588 -12 work in progress Materials -13 891 -7 067 -7 395 -11 001 -39 355 -20 994 and services Expenses -6 137 -6 047 -6 418 -5 450 -24 053 -22 127 from employee benefits Depreciatio -538 -542 -574 -580 -2 234 -2 426 n and amortizati on Other -2 547 -2 540 -2 166 -1 913 -9 166 -7 168 operating expenses Total -23 113 -16 196 -16 554 -18 944 -74 807 -52 716 operating expenses OPERATING 814 -1 442 -2 333 4 932 1 971 -6 886 PROFIT % of net 4 -10 -17 25 3 -15 sales Financial 313 211 266 -98 691 676 income Financial -362 -318 -338 21 -996 -910 expenses PROFIT 764 -1 550 -2 406 4 855 1 665 -7 120 (LOSS) BEFORE TAX % of net 3 -11 -18 25 2 -16 sales Income -244 285 538 -755 -177 1 341 taxes PROFIT 520 -1 265 -1 868 4 100 1 488 -5 779 (LOSS) FOR THE PERIOD % of net 2 -9 -14 21 2 -13 sales Attributabl e to Equity 520 -1 265 -1 868 4 100 1 488 -5 779 holders of the Parent company Earnings per share, EUR Undiluted 0,13 -0,32 -0,47 1,02 earnings per share Diluted 0,13 -0,32 -0,47 1,02 earnings per share Shares, 1 000 pcs Adjusted 4 005 4 005 4 005 4 005 average number of shares Adjusted 4 012 4 014 4 005 4 005 average number of shares, diluted LARGEST Number of Number of SHAREHOLDE RS AT JUNE 30, series K series A 2011 shares shares Total (20 votes (1 vote number per share) per of shares share) 1. Sundholm - 601 433 601 433 Göran 2. Suominen 48 000 74 759 122 759 Jussi Matias 3. 60 480 59 500 119 980 Mustakalli o Kari Pauli 4. Suominen 48 000 62 429 110 429 Pekka 5. Suominen 48 000 62 316 110 316 Tiina Sini-Maria 6. - 107 587 107 587 Sijoitusra hasto Alfred Berg Small Cap Finland 7. Siivonen 50 640 53 539 104 179 Osku Pekka 8. Mandatum - 96 900 96 900 Henkivakuu tusosakeyht iö 9. Kirmo 50 280 41 826 92 106 Kaisa Marketta 10. Lisboa - 85 000 85 000 De Castro Palacios Hietala M 11. 33 600 51 116 84 716 Keskiaho Kaija Leena 12. 49 180 34 670 83 850 Mustakalli o Mika Tapani 13. 60 480 22 009 82 489 Särkijärvi Anna Riitta 14. 47 240 30 862 78 102 Mustakalli o Ulla Sinikka 15. - 65 000 65 000 Relander Harald Bertel 16. 43 240 18 162 61 402 Mustakalli o Marja Helena 17. 12 000 43 256 55 256 Särkijärvi -Martinez Anu Riitta 18. 12 000 43 256 55 256 Särkijärvi Timo 19. Kirmo 30 000 24 110 54 110 Lasse 20. 24 960 27 964 52 924 Suominen Jukka Matias TOTAL 618 100 1 605 694 2 223 794 Share of 62,4 53,3 55,5 total amount of shares, % Share of 62,4 53,3 61,2 total voting rights, % Nominee-reg 85 994 85 994 istered Other 373 061 1 321 899 1 694 960 shareholde rs TOTAL 991 161 3 013 587 4 004 748 MANAGEMENT' 144 470 141 049 285 519 S SHAREHOLDI NG Share of 14,6 4,7 7,1 total amount of shares, % Share of 14,6 4,7 13,3 total voting rights, % SHARE 30.6. 30.6. 31.12. INFORMATIO N 2011 2010 2010 Number of shares - Series K shares, 991 161 991 161 991 161 ordinary shares (20 votes/share) - Series A shares (1 3 013 597 3 013 597 3 013 597 vote/share) Total 4 004 758 4 004 758 4 004 758 Trading of the company's shares (series A shares) Trading of 185 108 356 761 646 052 shares, pcs Trading of shares, EUR 1,9 2,8 5,2 million Share price of the series A shares At the end of the 9,81 7,37 9,70 period, EUR Highest price during 11,55 9,34 10,10 the period, EUR Lowest price during the 9,07 7,24 7,24 period, EUR Average price during 10,41 7,88 8,21 the period, EUR Market value of capital stock - Series K shares, EUR 9,7 7,3 9,6 million* - Series A shares, EUR 29,6 22,2 29,2 million Total, EUR 39,3 29,5 38,8 million *Series K shares valued at the value of series A shares at the end of reporting period. RAUTE CORPORATION Board of Directors BRIEFING ON AUGUST 9, 2011 AT 2 P.M.: A briefing for analysts, investors and the media will be organized on August 9, 2011 at 2 p.m. at Scandic Simonkenttä Hotel, Roba cabinet, Simonkatu 9, Helsinki. The interim report will be presented by Mr. Tapani Kiiski, President and CEO, and Mrs. Arja Hakala, CFO. NEXT INTERIM REPORT: Raute Corporation's interim report January 1 - September 30, 2011 will be published on Tuesday, November 1, 2011. FURTHER INFORMATION: Mr. Tapani Kiiski, President and CEO, Raute Corporation, tel. +358 3 829 3560, mobile +358 400 814 148 Mrs. Arja Hakala, CFO, Raute Corporation, tel. +358 3 829 3293, mobile +358 400 710 387 DISTRIBUTIO N: NASDAQ OMX Helsinki Ltd, main media, www.raute.com RAUTE IN BRIEF: 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). The technology offering covers machinery and equipment for the entire production process. As a supplier of mill-scale projects Raute is a global market leader both in the plywood and LVL industries. Additionally, Raute's full-service concept includes services ranging from repairs and spare parts deliveries to regular maintenance and equipment modernizations. Raute's head office is located in Nastola, Finland. Its other production plants are in the Vancouver area of Canada, in the Shanghai area of China, and in Kajaani, Finland. Raute's net sales in 2010 were EUR 62.9 million. The number of personnel at the end of 2010 was 495. More information on the company can be found at www.raute.com. |
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