2007-08-09 08:00:00 CEST
2007-08-09 08:00:00 CEST
REGULATED INFORMATION
Raute - Quarterly report
RAUTE CORPORATION - INTERIM REPORT JANUARY 1 - JUNE 30, 2007
- Net sales totaled MEUR 58.7 (MEUR 55.0), up 7% on the comparison period.
- Operating profit, MEUR 3.7 (MEUR 2.5), and profit before tax, MEUR 4.1 (MEUR
2.7), improved.
- Earnings per share were EUR 0.78 (EUR 0.58).
- The order intake was MEUR 26 (MEUR 42), and the order book at the end of the
period, MEUR 49 (MEUR 41), was at a good level.
- Net sales are expected to grow moderately in 2007 and operating profit to
clearly improve over the previous year.
MR. TAPANI KIISKI, PRESIDENT AND CEO: CONTINUED POSITIVE DEVELOPMENT
“Our profit development continued on a positive track in the second quarter,
putting the company clearly ahead of last year. Factors contributing to this
include a good order book, in terms of both volume and content, and the results
of our own measures. We have succeeded in keeping costs at the planned level, as
well as maintained our quality and delivery reliability good. Favorable
development has continued in technology services. In modernizations, for
example, nearly all of the capacity for the rest of 2007 has already been sold.
The profitability of our North American operations has also improved despite the
difficult market conditions.
Our customers continue to enjoy a good market in all market areas except for
North America. They are actively planning new investments to increase production
capacity, as well as improvements to existing production equipment. Owing to
different reasons, however, many investment decisions have been postponed from
their original schedules, sometimes significantly. We have experienced this as a
low intake of project orders in the first part of the year. This type of
postponement of investment decisions and supplier selection is typical of
project business and as such does not give rise to concern. However, should
sales continue to be slow throughout the third quarter, we would feel the impact
on our net sales and profitability in early 2008. Nevertheless, I believe that
important investment decisions will be made in early autumn.
The continuation of positive market conditions involves some uncertainties. The
steep increase in wood prices will cause short-term profitability problems for
our customers. Still, raw material processors in other industries have managed
to improve their profitability even though the price of raw materials has
increased. I hope this will also be the case for Raute's customers. The high
wood export duties adopted by Russia, and especially their rapid implementation,
cause uncertainty and slow down investments in areas where production relies on
wood raw material imported from the country. Investments in Russia are expected
to increase, but they are unlikely to be carried out fast enough to avoid
interruptions in the market for wood-based panel products. The development of
the US dollar against the euro and the Canadian dollar poses a threat to Raute's
competitiveness in both the North American market and other areas where we
compete against US companies. Added to this is the relatively high cost impact
of the new national incomes policy agreements in Finland, which makes the
competitiveness of work carried out in Finland particularly challenging at the
moment.
Our positive profit development in the first quarter and our strong order book
put Raute in a good position to clearly improve profitability in 2007. In our
view, the new orders received at the beginning of the third quarter, as well as
active demand, will support positive view on order intake development in the
latter part of the year.”
MARKET SITUATION
Market situation in customer industries
The market situation in Raute's customer industries has continued to be good in
the first half of 2007 in all of the market areas except for North America. The
demand, production volumes, and selling prices of plywood, veneer, and LVL have
remained at a good level. Many public companies in the wood products industry
have reported strong growth and good profitability. However, the steep increase
in the price of wood raw material and threats related to wood supplies have been
signaled as profitability risks in several countries, especially those
neighboring Russia.
The North American construction and renovation markets are still slow and have,
in some cases, weakened from the spring. As a result, the demand and selling
prices of wood products are at a low level in the region. The North American
markets are not expected to show an upswing until 2008 at the earliest.
Demand for wood products technology
The demand for investments in the plywood, veneer, and LVL industries remained
good, with the exception of North America. However, the number of actual
investment decisions has fallen short of expectations. Compared to last year,
quotation demand has been brisker for medium-sized production line projects and
especially modernizations. Several mill-scale projects are now in the planning
phase. While the progress and realization of large projects always involve
uncertainties, some important projects are expected to enter the decision-making
phase already this year. Demand is briskest in Russia.
The demand for technology services, especially modernizations, is at a good
level.
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 first-half year order intake amounted to EUR 26 million (MEUR 42). As for
projects, the order intake remained low at EUR 11 million (MEUR 29). The most
significant single project order was for two automatic veneer patching lines to
Finland. The order intake for technology services was up on the comparison
period, totaling EUR 15 million (MEUR 13).
The order book at the end of the period, MEUR 49 (MEUR 41), was at a good level.
Competitive position
In May Raute participated in the sector's biggest fair, Ligna+, in Hannover,
Germany. The event was successful for Raute. The company received many new
quotation requests and contacts from potential customers. Raute's fair themes -
solid competence in mill-scale deliveries and new decorative veneer technology -
attracted positive attention.
Raute has a strong competitive position in its own field and is at its strongest
in major projects for the plywood, veneer, and LVL industries. The company's
position is based on the latest technology on the market, a comprehensive
offering of technology and services, and successful reference deliveries.
The investments made in product development maintain and reinforce Raute's
competitive position. Several negotiations in different market areas are now
under way for deals on products that were in the first-delivery phase in 2006.
The continued good order intake for technology services, especially
modernizations, is proof of the competitiveness of Raute's service offering.
The costs of Raute's main competitors are mainly incurred in currencies other
than the euro. The ongoing strengthening of the euro, combined with the
expensive national incomes policy agreements in Finland, which clearly exceed
the cost rise in competing countries, call for further enhancement of operations
in order for the company to maintain and develop its cost competitiveness.
NET SALES AND RESULT
Net sales for the report period were EUR 58.7 million (MEUR 55.0), up 7 percent
on the comparison period.
Progress in the four mill-scale orders received in 2006 was reflected in the
change in net sales distribution by market area. Europe took over as the biggest
market area in the report period, accounting for 31% (24%) of net sales.
Russia's share of net sales rose to 30% (9%), North America's to 26% (14%). The
share of other market areas was 13% (53%). Net sales were generated exclusively
by project deliveries and technology services related to the wood products
technology business. Technology services were up 23% on the comparison period,
accounting for 25% (21%) of net sales.
The Group's operating profit, EUR 3.7 million (MEUR 2.5), and profit before tax,
EUR 4.1 million (MEUR 2.7), increased from the comparison period. Operating
profit percentage was up 1.7 percentage points on the comparison period, mainly
as a result of increased net sales. The profit for the period was EUR 3.1
million (MEUR 2.2), and earnings per share were EUR 0.78 (EUR 0.58).
Second-quarter net sales were EUR 29.8 million (MEUR 28.5). Operating profit
totaled EUR 1.8 million (MEUR 1.4) and accounted for 6% (5%) of net sales.
Profit in the second quarter amounted to EUR 1.5 million (MEUR 1.3), and
earnings per share were EUR 0.37 (undiluted EUR 0.33).
FINANCING
The Group's financial position remained good. At the end of the period, gearing
was -34.9% (-20.7%) and equity ratio 62.9% (61.9%). The balance sheet total has
decreased by EUR 12.1 million from the beginning of the year, totaling EUR 56.4
million (MEUR 47.5) at the end of the report 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.
The change in cash and cash equivalents in the report period was EUR 13.1
million negative (MEUR -5.5). Liquid assets stood at EUR 10.9 million (MEUR 5.9)
at the end of the report period, while cash flow from operating activities
amounted to EUR -10.7 million (MEUR -2.4). Cash flow from investing activities
totaled EUR -0.7 million (MEUR -0.8). Cash flow from financing activities, EUR
-1.7 million (MEUR -2.3), includes EUR 2.8 million (MEUR 2.3) in dividend
payments for 2006.
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 2.4 million (MEUR 1.8), representing
4.1% (3.3%) of net sales. They rose sharply from the previous year as a result
of the costs of some large product development projects being incurred in the
review period.
Investments totaled EUR 0.7 million (MEUR 0.8) and consisted of information
system and other replacement investments.
PERSONNEL
The Group's headcount at the end of the report period, 607 (557), increased in
the summer as a result of temporary employment relationships, such as those of
trainees. Converted to full-time employees, the average number of personnel in
the report period was 564 (539). Compared to the previous year, the number of
personnel rose due to the development of Chinese operations and the fluctuation
in the loads at Raute's North American companies. Group companies outside
Finland accounted for 24% (22%) 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 report 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 Nordic list of 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 report period was EUR 57.0
million (MEUR 50.8), with series K shares valued at the closing price of series
A shares on June 30, 2007, that is EUR 14.23 (EUR 13.23).
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 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 1,150
(1,018) at the end of the report period. Series K shares are held by 46 private
individuals (46). The management held 4.7% (4.5%) of company shares and 9.1%
(8.9%) of votes. Nominee-registered shares accounted for 2.5% (1.6%) of shares.
The company did not possess company shares during the report period or hold them
as security.
No flagging notifications were given to the company in the report 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 3.5 million
(MEUR 1.7) at the end of the report period. The measurement of these forward
contracts in compliance with IFRS improved the company's net sales and operating
profit by EUR 0.3 million (MEUR 0.1) compared to the Finnish Accounting
Standards.
Forward contracts in Canadian and US dollars related to fair value hedging had a
nominal value of EUR 6.1 million (MEUR 0.0) at the end of the report period.
Hedge accounting had a negative impact of EUR 59 thousand (EUR -30 thousand) on
the period's result.
OUTLOOK FOR 2007
The demand for investments in Raute's customer industries is expected to remain
good and lead to new investment decisions in most of the market areas in the
latter part of the year. Demand is particularly brisk in Russia. In addition to
new mill-scale projects, demand now targets individual production lines and
technology services.
Based on the net sales and operating profit accumulated so far, as well as the
good order book, the net sales for 2007 are expected to grow moderately from the
previous year. Operating profit is expected to rise clearly.
CONSOLIDATED INTERIM FINANCIAL STATEMENTS JANUARY 1 - JUNE 30, 2007
Figures are not audited
(Figures in EUR 1 000)
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| CONSOLIDATED INCOME | Note | 1.4. - | 1.4. - | 1.1. - | 1.1. - | 1.1. - |
| STATEMENT | | 30.6. | 30.6. | 30.6. | 30.6. | 31.12. |
| | | 2007 | 2006 | 2007 | 2006 | 2006 |
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| | | | | | | |
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| NET SALES | 2, 3, | 29 769 | 28 543 | 58 650 | 55 045 | 106 206 |
| | 4 | | | | | |
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| | | | | | | |
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| Other operating | | 19 | 72 | 58 | 97 | 199 |
| income | | | | | | |
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| | | | | | | |
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| Increase (+) or | | -54 | 144 | 192 | 410 | -111 |
| decrease (-) in | | | | | | |
| inventories of | | | | | | |
| finished goods and | | | | | | |
| work in progress | | | | | | |
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| | | | | | | |
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| Materials and | | 17 439 | 16 931 | 34 436 | 32 782 | 62 418 |
| services | | | | | | |
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| Expenses from | 7 | 7 369 | 7 134 | 14 376 | 13 591 | 26 227 |
| employee benefits | | | | | | |
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| Depreciation, | | 663 | 579 | 1 316 | 1 174 | 2 660 |
| amortization and | | | | | | |
| impairment charges | | | | | | |
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| Other operating | | 2 427 | 2 709 | 5 046 | 5 469 | 10 476 |
| expenses | | | | | | |
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| Total operating | 6 | 27 898 | 27 352 | 55 174 | 53 015 | 101 781 |
| expenses | | | | | | |
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| | | | | | | |
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| OPERATING PROFIT / | | 1 836 | 1 408 | 3 726 | 2 538 | 4 513 |
| LOSS | | | | | | |
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| % of net sales | | 6 % | 5 % | 6 % | 5 % | 4 % |
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| | | | | | | |
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| Financial income | | 191 | -46 | 502 | 363 | 745 |
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| Financial expenses | | -53 | -5 | -105 | -194 | -371 |
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| | | | | | | |
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| PROFIT / LOSS BEFORE | | 1 973 | 1 357 | 4 124 | 2 707 | 4 887 |
| TAX | | | | | | |
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| % of net sales | | 7 % | 5 % | 7 % | 5 % | 5 % |
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| | | | | | | |
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| Income taxes *) | | -478 | -50 | -995 | -473 | -1 255 |
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| | | | | | | |
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| PROFIT / LOSS FOR THE | | 1 495 | 1 307 | 3 129 | 2 235 | 3 632 |
| PERIOD | | | | | | |
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| % of net sales | | 5 % | 5 % | 5 % | 4 % | 3 % |
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| | | | | | | |
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*) Income taxes represent the tax corresponding to the period's result, based on
the estimated full-year tax rate.
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| Breakdown | | | | | | |
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| Minority interest | | 0 | 0 | 0 | 0 | 0 |
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| Share of profit / | | 1 495 | 1 307 | 3 129 | 2 235 | 3 632 |
| loss that belongs to | | | | | | |
| owners of the parent | | | | | | |
| company | | | | | | |
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| | | | | | | |
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| Earnings per share, | | | | | | |
| EUR | | | | | | |
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| Undiluted earnings | | 0,37 | 0,34 | 0,78 | 0,58 | 0,94 |
| per share | | | | | | |
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| Diluted earnings per | | 0,37 | 0,33 | 0,78 | 0,57 | 0,94 |
| share | | | | | | |
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| | | | | | | |
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| Shares (1 000 pcs) | | | | | | |
--------------------------------------------------------------------------------
| Adjusted average | | 4 005 | 3 822 | 4 005 | 3 822 | 3 867 |
| number of shares | | | | | | |
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| Adjusted average | | 4 005 | 3 931 | 4 005 | 3 931 | 3 867 |
| number of shares | | | | | | |
| diluted | | | | | | |
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| CONSOLIDATED BALANCE | Note | | | 30.6. | 30.6. | 31.12. |
| SHEET | | | | 2007 | 2006 | 2006 |
| | | | | | | |
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| ASSETS | | | | | | |
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| Fixed assets and | | | | | | |
| other non-current | | | | | | |
| assets | | | | | | |
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| - Intangible assets | | | | 2 838 | 2 704 | 2 924 |
--------------------------------------------------------------------------------
| - Tangible assets | | | | 12 063 | 13 544 | 12 542 |
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| - Available-for-sale | | | | 395 | 432 | 395 |
| investments | | | | | | |
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| - Deferred tax assets | | | | 331 | 125 | 487 |
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| Total | | | | 15 627 | 16 804 | 16 348 |
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| | | | | | | |
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| Current assets | | | | | | |
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| - Inventories | | | | 5 569 | 4 862 | 4 933 |
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| - Account receivables | 4 | | | 24 264 | 19 894 | 23 184 |
| and other receivables | | | | | | |
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| - Financial assets at | | | | 6 418 | 1 971 | 10 195 |
| fair value through | | | | | | |
| profit or loss | | | | | | |
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| - Cash and cash | | | | 4 530 | 3 963 | 13 812 |
| equivalents | | | | | | |
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| Total | | | | 40 781 | 30 690 | 52 124 |
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| | | | | | | |
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| TOTAL ASSETS | 2 | | | 56 408 | 47 494 | 68 472 |
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| | | | | | | |
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| SHAREHOLDERS' EQUITY | | | | | | |
| AND LIABILITIES | | | | | | |
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| Shareholders' equity | | | | | | |
--------------------------------------------------------------------------------
| - Share capital | | | | 8 010 | 7 673 | 8 010 |
--------------------------------------------------------------------------------
| - Share premium | | | | 6 498 | 5 551 | 6 498 |
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| - Other funds | 7 | | | 162 | 8 | -201 |
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| - Retained earnings | | | | 11 846 | 10 784 | 11 370 |
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| - Profit / loss for | | | | 3 129 | 2 235 | 3 632 |
| the period | | | | | | |
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| Share of | | | | 29 645 | 26 250 | 29 309 |
| shareholders' equity | | | | | | |
| that belongs to | | | | | | |
| owners of the parent | | | | | | |
| company | | | | | | |
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| Minority interest | | | | 0 | 0 | 0 |
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| Total shareholders' | | | | 29 645 | 26 250 | 29 309 |
| equity | | | | | | |
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| | | | | | | |
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| Long-term liabilities | | | | | | |
--------------------------------------------------------------------------------
| - Provisions | | | | 244 | 495 | 262 |
--------------------------------------------------------------------------------
| - Deferred tax | | | | 1 052 | 1 219 | 1 084 |
| liabilities | | | | | | |
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| - Long-term | | | | 317 | 359 | 317 |
| interest-bearing | | | | | | |
| liabilities | | | | | | |
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| Total | | | | 1 612 | 2 074 | 1 663 |
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| | | | | | | |
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| Current liabilities | | | | | | |
--------------------------------------------------------------------------------
| - Provisions | | | | 1 020 | 1 362 | 1 726 |
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| - Pension obligations | | | | 298 | 348 | 335 |
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| - Short-term | | | | 276 | 150 | 150 |
| interest-bearing | | | | | | |
| liabilities | | | | | | |
--------------------------------------------------------------------------------
| - Advance payments | 4 | | | 9 271 | 5 083 | 19 726 |
| received | | | | | | |
--------------------------------------------------------------------------------
| - Current tax | | | | 0 | 0 | 113 |
| liabilities | | | | | | |
--------------------------------------------------------------------------------
| - Trade and other | | | | 14 287 | 12 228 | 15 450 |
| payables | | | | | | |
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| Total | | | | 25 151 | 19 171 | 37 500 |
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| | | | | | | |
--------------------------------------------------------------------------------
| Total liabilities | | | | 26 764 | 21 245 | 39 163 |
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| | | | | | | |
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| TOTAL SHAREHOLDERS' | | | | 56 408 | 47 494 | 68 472 |
| EQUITY AND | | | | | | |
| LIABILITIES | | | | | | |
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| |
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| |
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| CONSOLIDATED CASH FLOW | | 1.1. - 30.6. | 1.1. - | 1.1. - |
| STATEMENT | | 2007 | 30.6. | 31.12. |
| | | | 2006 | 2006 |
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| | | | | |
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| CASH FLOW FROM OPERATING | | | | |
| ACTIVITIES | | | | |
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| Proceeds from sales | | 48 301 | 54 994 | 116 046 |
--------------------------------------------------------------------------------
| Proceeds from other | | 58 | 55 | 155 |
| operating income | | | | |
--------------------------------------------------------------------------------
| Payments of operating | | -58 527 | -57 175 | -100 100 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Cash flow before | | -10 169 | -2 126 | 16 102 |
| financial items and | | | | |
| taxes | | | | |
--------------------------------------------------------------------------------
| Interests and other | | -105 | -54 | -190 |
| operating financial | | | | |
| expenses paid | | | | |
--------------------------------------------------------------------------------
| Interests and other | | 387 | 518 | 660 |
| income received | | | | |
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| Dividends received | | 115 | 24 | 24 |
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| Income taxes paid | | -932 | -785 | -1 614 |
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| NET CASH FLOW FROM (+) / | | -10 703 | -2 423 | 14 982 |
| USED IN (-) OPERATING | | | | |
| ACTIVITIES (A) | | | | |
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| | | | | |
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| CASH FLOW FROM INVESTING | | | | |
| ACTIVITIES | | | | |
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| Capital expenditure in tangible | -678 | -802 | -1 809 |
| and intangible assets | | | |
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| Purchases of | | 0 | -48 | -49 |
| available-for-sale as | | | | |
| investments | | | | |
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| Proceeds from sale of tangible | 0 | 73 | 292 |
| and intangible assets | | | |
--------------------------------------------------------------------------------
| Proceeds from other | | 0 | 8 | 20 |
| investments | | | | |
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| NET CASH FLOW FROM (+) / | | -678 | -769 | -1 545 |
| USED IN (-) INVESTING | | | | |
| ACTIVITIES (B) | | | | |
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| | | | | |
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| CASH FLOW FROM FINANCING | | | | |
| ACTIVITIES | | | | |
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| Repayments of long-term | | 1 000 | 48 | 95 |
| and short-term loan | | | | |
| receivables | | | | |
--------------------------------------------------------------------------------
| Repayment of short-term | | 126 | 0 | 0 |
| liabilities | | | | |
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| Repayment of long-term | | 0 | -26 | -67 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Proceeds from issuance | | 0 | 0 | 1 436 |
| of shares | | | | |
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| Dividends paid | | -2 803 | -2 290 | -2 290 |
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| NET CASH FROM (+) / USED | | -1 677 | -2 268 | -826 |
| IN (-) FINANCING | | | | |
| ACTIVITIES (C) | | | | |
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| | | | | |
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| NET CHANGE IN CASH AND | | -13 058 | -5 460 | 12 611 |
| CASH EQUIVALENTS (A+B+C) | | | | |
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| increase (+) / decrease | | | | |
| (-) | | | | |
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| | | | | |
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| CASH AND CASH | | | | |
| EQUIVALENTS*) | | | | |
--------------------------------------------------------------------------------
| - AT THE BEGINNING OF | | 24 006 | 11 395 | 11 395 |
| THE PERIOD | | | | |
--------------------------------------------------------------------------------
| - AT THE END OF THE | | 10 948 | 5 934 | 24 006 |
| PERIOD | | | | |
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| | | | | |
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| CASH AND CASH EQUIVALENTS IN THE BALANCE SHEET AT THE END OF THE PERIOD |
| |
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| | | | | |
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| Financial assets at fair | | 6 418 | 1 971 | 10 195 |
| value through profit or | | | | |
| loss | | | | |
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| Cash and cash | | 4 530 | 3 963 | 13 812 |
| equivalents | | | | |
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| Total | | 10 948 | 5 934 | 24 006 |
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*) Cash and cash equivalents comprise trading assets as well as cash and bank
receivables, which will be due within the following three months' period.
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| CONSOLIDATED STATEMENT | | | | | |
| OF CHANGES IN | | | | | |
| SHAREHOLDERS' EQUITY | | | | | |
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| | Share | Share | Other | Exchange | Retained |
| | capital| premium| funds | rate | earnings |
| | | | | diff. | |
--------------------------------------------------------------------------------
| EQUITY Jan. 1, 2007 | 8 010 | 6 498 | -201 | 274 | 14 726 |
--------------------------------------------------------------------------------
| Exchange differences | | | 333 | | |
| from net investments | | | | | |
--------------------------------------------------------------------------------
| Taxes related to items | | | | | |
| recognized in equity | | | | | |
| or transferred from | | | | | |
| equity | | | | | |
--------------------------------------------------------------------------------
| Translation | | | | -351 | |
| differences | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | |
| increase/decrease | | | | | |
--------------------------------------------------------------------------------
| Net income recognized | 0 | 0 | 333 | -351 | 0 |
| directly in equity | | | | | |
--------------------------------------------------------------------------------
| Profit for the period | | | | | 3 129 |
--------------------------------------------------------------------------------
| Total income and | 0 | 0 | 333 | -351 | 3 129 |
| expenses recognized in | | | | | |
| the period | | | | | |
--------------------------------------------------------------------------------
| Share capital increase | | | | | |
| (options) | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | -2 803 |
--------------------------------------------------------------------------------
| Equity-settled | | | | | |
| share-based | | | | | |
--------------------------------------------------------------------------------
| transactions | | | 29 | | |
--------------------------------------------------------------------------------
| EQUITY June 30, 2007 | 8 010 | 6 498 | 161 | -77 | 15 052 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT | | | |
| OF CHANGES IN | | | |
| SHAREHOLDERS' EQUITY | | | |
| (continue) | | | |
--------------------------------------------------------------------------------
| | Owners of the | Minority | EQUITY TOTAL |
| | parent | interest | |
| | company | | |
--------------------------------------------------------------------------------
| EQUITY Jan. 1, 2007 | 29 308 | 0 | 29 308 |
--------------------------------------------------------------------------------
| Exchange differences from | 333 | | 333 |
| net investments | | | |
--------------------------------------------------------------------------------
| Taxes related to items | 0 | | 0 |
| recognized in equity or | | | |
| transferred from equity | | | |
--------------------------------------------------------------------------------
| Translation differences | -351 | | -351 |
--------------------------------------------------------------------------------
| Other increase/decrease | 0 | | 0 |
--------------------------------------------------------------------------------
| Net income recognized | -18 | 0 | -18 |
| directly in equity | | | |
--------------------------------------------------------------------------------
| Profit for the period | 3 129 | | 3 129 |
--------------------------------------------------------------------------------
| Total income and expenses | 3 111 | 0 | 3 111 |
| recognized in the period | | | |
--------------------------------------------------------------------------------
| Share capital increase | 0 | | 0 |
| (options) | | | |
--------------------------------------------------------------------------------
| Dividend | -2 803 | | -2 803 |
--------------------------------------------------------------------------------
| Equity-settled | | | |
| share-based | | | |
--------------------------------------------------------------------------------
| transactions | 29 | | 29 |
--------------------------------------------------------------------------------
| EQUITY June 30, 2007 | 29 645 | 0 | 29 645 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 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 | | | | 223 | |
| differences | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | |
| increase/decrease | | | | | |
--------------------------------------------------------------------------------
| Net income recognized | 0 | 0 | 0 | 223 | 0 |
| directly in equity | | | | | |
--------------------------------------------------------------------------------
| Profit for the period | | | | | 2 235 |
--------------------------------------------------------------------------------
| Total income and | 0 | 0 | 0 | 223 | 2 235 |
| expenses recognized in | | | | | |
| the period | | | | | |
--------------------------------------------------------------------------------
| Share capital increase | 44 | 122 | -6 | | |
| (options) | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | -2 290 |
--------------------------------------------------------------------------------
| Equity-settled | | | | | |
| share-based | | | | | |
--------------------------------------------------------------------------------
| transactions | | | | | |
--------------------------------------------------------------------------------
| EQUITY June 30, 2006 | 7 673 | 5 551 | 8 | -310 | 13 329 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT | | | |
| OF CHANGES IN | | | |
| SHAREHOLDERS' EQUITY | | | |
| (continue) | | | |
--------------------------------------------------------------------------------
| | Owners of the | Minority | EQUITY TOTAL |
| | parent company | interest | |
--------------------------------------------------------------------------------
| EQUITY Jan. 1, 2006 | 25 923 | 224 | 26 147 |
--------------------------------------------------------------------------------
| Exchange differences from | 0 | | 0 |
| net investments | | | |
--------------------------------------------------------------------------------
| Taxes related to items | 0 | | 0 |
| recognized in equity or | | | |
| transferred from equity | | | |
--------------------------------------------------------------------------------
| Translation differences | 223 | | 223 |
--------------------------------------------------------------------------------
| Other increase/decrease | 0 | -224 | -224 |
--------------------------------------------------------------------------------
| Net income recognized | 223 | -224 | -1 |
| directly in equity | | | |
--------------------------------------------------------------------------------
| Profit for the period | 2 235 | | 2 235 |
--------------------------------------------------------------------------------
| Total income and expenses | 2 458 | -224 | 2 234 |
| recognized in the period | | | |
--------------------------------------------------------------------------------
| Share capital increase | 159 | | 159 |
| (options) | | | |
--------------------------------------------------------------------------------
| Dividend | -2 290 | | -2 290 |
--------------------------------------------------------------------------------
| Equity-settled | | | |
| share-based | | | |
--------------------------------------------------------------------------------
| transactions | 0 | | 0 |
--------------------------------------------------------------------------------
| EQUITY June 30, 2006 | 26 250 | 0 | 26 250 |
--------------------------------------------------------------------------------
NOTES
GENERAL INFORMATION
Raute Corporation's Board of Directors has on 9 August
2007 reviewed the Group's Interim financial statements for January 1 - June 30,
2007, and decided to publish Raute Corporation's Interim financial reporting for
January 1 - June 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 - June 30, 2007,
included in the Interim financial reporting, do not contain the full notes and
other information presented in 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.
The preparation of 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 year.
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 | 30.6. | % | 30.6. | % | 31.12. | % |
| clients' geographical | 2007 | | 2006 | | 2006 | |
| location | | | | | | |
--------------------------------------------------------------------------------
| Europe | 18 322 | 31 | 13 178 | 24 | 30 620 | 29 |
--------------------------------------------------------------------------------
| Russia | 17 601 | 30 | 4 789 | 9 | 12 470 | 12 |
--------------------------------------------------------------------------------
| North America | 15 374 | 26 | 7 915 | 14 | 17 107 | 16 |
--------------------------------------------------------------------------------
| South America | 5 734 | 10 | 24 264 | 44 | 39 160 | 37 |
--------------------------------------------------------------------------------
| Rest of the world | 1 619 | 3 | 4 899 | 9 | 6 849 | 6 |
--------------------------------------------------------------------------------
| TOTAL | 58 650 | 100 | 55 045 | 100 | 106 206 | 100 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Assets by | | | | | | |
| geographical location | | | | | | |
--------------------------------------------------------------------------------
| Europe | 48 535 | 86 | 40 972 | 86 | 63 832 | 93 |
--------------------------------------------------------------------------------
| Russia | 376 | 1 | 123 | 0 | 190 | 1 |
--------------------------------------------------------------------------------
| North America | 6 092 | 11 | 6 234 | 13 | 4 158 | 6 |
--------------------------------------------------------------------------------
| South America | 47 | 0 | 44 | 0 | 38 | 0 |
--------------------------------------------------------------------------------
| Rest of the world | 1 357 | 2 | 121 | 0 | 254 | 0 |
--------------------------------------------------------------------------------
| TOTAL | 56 408 | 100 | 47 494 | 100 | 68 472 | 100 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Capital expenditure | | | | | | |
| by geographical | | | | | | |
| location | | | | | | |
--------------------------------------------------------------------------------
| Europe | 468 | 69 | 824 | 97 | 1 801 | 97 |
--------------------------------------------------------------------------------
| Russia | 0 | 0 | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| North America | 72 | 11 | 26 | 3 | 51 | 3 |
--------------------------------------------------------------------------------
| South America | 0 | 0 | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Rest of the world | 138 | 20 | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| TOTAL | 678 | 100 | 850 | 100 | 1 852 | 100 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 3. Proceeds from | | | | | | |
| sales | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 1.1. - | | 1.1. - | | 1.1. - | |
| by market area | 30.6. | % | 30.6. | % | 31.12. | % |
| | 2007 | | 2006 | | 2006 | |
--------------------------------------------------------------------------------
| Russia | 17 601 | 30 | 4 789 | 9 | 12 470 | 12 |
--------------------------------------------------------------------------------
| North America | 15 374 | 26 | 7 915 | 14 | 17 107 | 16 |
--------------------------------------------------------------------------------
| Rest of Europe | 11 767 | 20 | 9 812 | 18 | 20 203 | 19 |
--------------------------------------------------------------------------------
| Finland | 6 555 | 11 | 3 366 | 6 | 10 417 | 10 |
--------------------------------------------------------------------------------
| South America | 5 734 | 10 | 24 264 | 44 | 39 160 | 37 |
--------------------------------------------------------------------------------
| Asia | 820 | 1 | 4 404 | 8 | 5 593 | 5 |
--------------------------------------------------------------------------------
| Oceania | 303 | 1 | 148 | 0 | 501 | 0 |
--------------------------------------------------------------------------------
| Others | 496 | 1 | 347 | 1 | 755 | 1 |
--------------------------------------------------------------------------------
| TOTAL | 58 650 | 100 | 55 045 | 100 | 106 206 | 100 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 4. Long-term projects | | | 30.6. | 30.6. | 31.12. |
| | | | 2007 | 2006 | 2006 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Net sales | | | | | |
--------------------------------------------------------------------------------
| Net sales by | | | 51 495 | 47 354 | 90 464 |
| percentage of | | | | | |
| completion | | | | | |
--------------------------------------------------------------------------------
| Other net sales | | | 7 156 | 7 691 | 15 742 |
--------------------------------------------------------------------------------
| TOTAL | | | 58 650 | 55 045 | 106 206 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Project revenues entered as | | 96 817 | 70 560 | 77 607 |
| income from currently | | | | |
| undelivered long-term projects | | | | |
| recognized by percentage of | | | | |
| completion | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Amount of long-term projects | | 43 419 | 38 483 | 74 281 |
| revenues not yet entered as | | | | |
| income | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Specification of | | | | | |
| combined asset and | | | | | |
| liability items: | | | | | |
--------------------------------------------------------------------------------
| Accrued income corresponding to | | 97 769 | 70 515 | 76 989 |
| revenues by percentage of | | | | |
| completion | | | | |
--------------------------------------------------------------------------------
| Advances received from | | | -83 054 | -60 068 | -62 588 |
| project customers | | | | | |
--------------------------------------------------------------------------------
| Project receivables included in | | 14 715 | 10 447 | 14 401 |
| short-term receivables | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Advance payments | | | 9 271 | 5 083 | 19 726 |
| received at Balance | | | | | |
| Sheet | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 5. Number of personnel | | | 30.6. | 30.6. | 31.12. |
| | | | 2007 | 2006 | 2006 |
--------------------------------------------------------------------------------
| - effective, on | | | 564 | 539 | 546 |
| average | | | | | |
--------------------------------------------------------------------------------
| - in books, on average | | | 569 | 530 | 547 |
--------------------------------------------------------------------------------
| - in books, at the end | | | 607 | 557 | 540 |
| of period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 6. Research and | | | | 30.6. | 30.6. | 31.12. |
| development costs | | | | 2007 | 2006 | 2006 |
| | | | | | | |
--------------------------------------------------------------------------------
| Research and | | | | 2 386 | 1 808 | 3 765 |
| development costs on | | | | | | |
| the period | | | | | | |
--------------------------------------------------------------------------------
| Depreciation of | | | | 183 | 77 | 228 |
| capitalized | | | | | | |
| development costs | | | | | | |
--------------------------------------------------------------------------------
| Recognized as assets | | | | -202 | -184 | -538 |
| in balance sheet | | | | | | |
--------------------------------------------------------------------------------
| Research and | | | | 2 367 | 1 701 | 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 62 thousand. At the end of the reporting period the current value of the
cash portion was EUR 14.23 per share. The value of share-based remunerations was
EUR 0.4 million total.
--------------------------------------------------------------------------------
| 8. Off-balance sheet | | | | 30.6. | 30.6. | 31.12. |
| commitments | | | | 2007 | 2006 | 2006 |
| | | | | | | |
--------------------------------------------------------------------------------
| Security of own debts | | | | | | |
--------------------------------------------------------------------------------
| - mortgages | | | | 11 058 | 11 134 | 11 134 |
--------------------------------------------------------------------------------
| Security for Group's | | | | | | |
| liabilities | | | | | | |
--------------------------------------------------------------------------------
| - bank guarantees | | | | 18 727 | 16 049 | 14 116 |
--------------------------------------------------------------------------------
| Other own liabilities | | | | | | |
--------------------------------------------------------------------------------
| Leasing and rent | | | | | | |
| liabilities | | | | | | |
--------------------------------------------------------------------------------
| - for the current | | | | 146 | 105 | 218 |
| accounting period | | | | | | |
--------------------------------------------------------------------------------
| - for subsequent | | | | 542 | 127 | 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 | | | | 30.6. | 30.6. | 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 | | | | 3 268 | 6 652 | 2 065 |
| financing | | | | | | |
--------------------------------------------------------------------------------
| - related to hedging | | | | 3 491 | 1 734 | 174 |
| of net sales | | | | | | |
--------------------------------------------------------------------------------
| Hedge accounting | | | | | | |
--------------------------------------------------------------------------------
| - related to the | | | | 6 131 | 0 | 7 000 |
| hedging of net sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Fair values of | | | | | | |
| forward contracts in | | | | | | |
| foreign currency | | | | | | |
--------------------------------------------------------------------------------
| Economic hedging | | | | | | |
--------------------------------------------------------------------------------
| - related to | | | | -166 | 9 | 2 |
| financing | | | | | | |
--------------------------------------------------------------------------------
| - related to the | | | | 187 | 18 | -8 |
| hedging of net sales | | | | | | |
--------------------------------------------------------------------------------
| Hedge accounting | | | | | | |
--------------------------------------------------------------------------------
| - related to the | | | | 255 | 0 | -50 |
| hedging of net sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Purchased currency | | | | | | |
| options | | | | | | |
--------------------------------------------------------------------------------
| - nominal values | | | | | | 1 963 |
--------------------------------------------------------------------------------
| - fair values | | | | | | 13 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GROUP KEY RATIOS | | | | | | |
--------------------------------------------------------------------------------
| | | | | 1.1. - | 1.1. - | 1.1. - |
| | | | | 30.6. | 30.6. | 31.12. |
| | | | | 2007 | 2006 | 2006 |
--------------------------------------------------------------------------------
| Return on investment | | | | 28,2 % | 21,7 % | 18,6 % |
| , ROI | | | | | | |
--------------------------------------------------------------------------------
| Return on equity , | | | | 21,2 % | 17,1 % | 13,1 % |
| ROE | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Quick ratio | | | | 2,2 | 2,0 | 2,7 |
--------------------------------------------------------------------------------
| Gearing | | | | -34,9 | -20,7 | -80,3 % |
| | | | | % | % | |
--------------------------------------------------------------------------------
| Equity ratio | | | | 62,9 % | 61,9 % | 60,1 % |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Order book, EUR | | | | 49 | 41 | 77 |
| million | | | | | | |
--------------------------------------------------------------------------------
| Order intake, EUR | | | | 26 | 42 | 132 |
| million | | | | | | |
--------------------------------------------------------------------------------
| Exported portion of | | | | 88,8 % | 93,9 % | 90,2 % |
| net sales | | | | | | |
--------------------------------------------------------------------------------
| Change in net sales | | | | 6,5 % | 15,6 % | -2,2 % |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Gross capital | | | | 0,7 | 0,8 | 1,9 |
| expenditure, EUR | | | | | | |
| million | | | | | | |
--------------------------------------------------------------------------------
| Gross capital | | | | 1,2 % | 1,5 % | 1,7 % |
| expenditure of net | | | | | | |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Research and | | | | 2,4 | 1,8 | 3,8 |
| development, EUR | | | | | | |
| million | | | | | | |
--------------------------------------------------------------------------------
| Research and | | | | 4,1 % | 3,3 % | 3,5 % |
| development of net | | | | | | |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Earnings per share | | | | | | |
| (EPS), EUR | | | | | | |
--------------------------------------------------------------------------------
| - basic | | | | 0,78 | 0,58 | 0,94 |
--------------------------------------------------------------------------------
| - diluted | | | | 0,78 | 0,57 | 0,94 |
--------------------------------------------------------------------------------
| Equity to share, EUR | | | | 7,40 | 6,84 | 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 | | | | 14,23 | 13,23 | 12,85 |
| end of period, EUR | | | | | | |
--------------------------------------------------------------------------------
| Number of shares | | | | | | |
--------------------------------------------------------------------------------
| - weighted average, 1 | | | | 4 005 | 3 822 | 3 867 |
| 000 pcs | | | | | | |
--------------------------------------------------------------------------------
| - diluted, 1 000 pcs | | | | 4 005 | 3 931 | 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 2 | Q 1 | Q 4 | Q 3 | Rolling | Rolling |
| | 2007 | 2007 | 2006 | 2006 | 1.7.2006| 1.7.2005 |
| | | | | | | - |
| | | | | | - | 30.6.2006|
| | | | | |30.6.2007| |
| | | | | | | |
| | | | | | | |
--------------------------------------------------------------------------------
| NET SALES | 29 769 |28 882 | 32 494 | 18 666 | 109 810 | 116 043 |
| | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Other operating | 19 | 38 | 72 | 30 | 160 | 280 |
| income | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Increase (+) or | -54 | 246 | -13 | -508 | -329 | -458 |
| decrease (-) in | | | | | | |
| inventories of | | | | | | |
| finished goods and | | | | | | |
| work in progress | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Materials and | 17 439 |16 997 | 19 490 | 10 146 | 64 072 | 70 144 |
| services | | | | | | |
--------------------------------------------------------------------------------
| Expenses from | 7 369 | 7 007 | 7 097 | 5 539 | 27 012 | 25 932 |
| employee benefits | | | | | | |
--------------------------------------------------------------------------------
| Depreciation, | 663 | 653 | 871 | 616 | 2 803 | 2 592 |
| amortization and | | | | | | |
| impairment charges | | | | | | |
--------------------------------------------------------------------------------
| Other operating | 2 427 | 2 618 | 2 796 | 2 211 | 10 053 | 12 078 |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Total operating | 27 898 |27 276 | 30 254 | 18 512 | 103 940 | 110 746 |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| OPERATING PROFIT / | 1 836 | 1 891 | 2 299 | -324 | 5 701 | 5 118 |
| LOSS | | | | | | |
--------------------------------------------------------------------------------
| % of net sales | 6 % | 7 % | 7 % | -2 % | 5 % | 4 % |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Financial income | 191 | 312 | 199 | 183 | 884 | 894 |
--------------------------------------------------------------------------------
| Financial expenses | -53 | -51 | -85 | -92 | -282 | -227 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| PROFIT / LOSS BEFORE | 1 973 | 2 151 | 2 412 | -233 | 6 303 | 5 786 |
| TAX | | | | | | |
--------------------------------------------------------------------------------
| % of net sales | 7 % | 7 % | 7 % | -1 % | 6 % | 5 % |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Income taxes | -478 | -517 | -717 | -66 | -1 777 | -1 100 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| PROFIT / LOSS FOR | 1 495 | 1 634 | 1 696 | -299 | 4 525 | 4 686 |
| THE PERIOD | | | | | | |
--------------------------------------------------------------------------------
| % of net sales | 5 % | 6 % | 5 % | -2 % | 4 % | 4 % |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Breakdown | | | | | | |
--------------------------------------------------------------------------------
| Minority interest | 0 | 0 | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Share of profit / | 1 495 | 1 634 | 1 696 | -299 | 4 525 | 4 686 |
| loss that belongs to | | | | | | |
| owners of the parent | | | | | | |
| company | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | | | | | | |
| EUR | | | | | | |
--------------------------------------------------------------------------------
| Undiluted earnings | 0,37 | 0,41 | 0,44 | -0,08 | | |
| per share | | | | | | |
--------------------------------------------------------------------------------
| Diluted earnings per | 0,37 | 0,41 | 0,44 | -0,08 | | |
| share | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Shares (1 000 pcs) | | | | | | |
--------------------------------------------------------------------------------
| Adjusted average | 4 005 | 4 005 | 3 867 | 3 834 | | |
| number of shares | | | | | | |
--------------------------------------------------------------------------------
| Adjusted average | 4 005 | 4 005 | 3 867 | 3 957 | | |
| number of shares, | | | | | | |
| diluted | | | | | | |
--------------------------------------------------------------------------------
THE LARGEST SHAREHOLDERS 30, June 2007
--------------------------------------------------------------------------------
| | Number of | Number of | Total number |
| | K-shares (20 | A-shares (1 | of shares |
| | votes per | vote per | |
| | share) | share) | |
--------------------------------------------------------------------------------
| 1. Sundholm Göran | | 500 000 | 500 000 |
--------------------------------------------------------------------------------
| 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 | 57 991 | 108 631 |
--------------------------------------------------------------------------------
| 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. Op-Suomi Arvo | | 67 900 | 67 900 |
| Sijoitusrahasto | | | |
--------------------------------------------------------------------------------
| 15. Sr Arvo Finland Value | | 62 922 | 62 922 |
--------------------------------------------------------------------------------
| 16. Mustakallio Marja | 42 240 | 20 662 | 62 902 |
| Helena | | | |
--------------------------------------------------------------------------------
| 17. Mustakallio Kai Henrik | 47 240 | 12 000 | 59 240 |
--------------------------------------------------------------------------------
| 18. Kirmo Lasse Antti | 30 000 | 26 200 | 56 200 |
--------------------------------------------------------------------------------
| 19. Sr Fides Finland Focus | | 55 730 | 55 730 |
--------------------------------------------------------------------------------
| 20. Särkijärvi Timo Juha | 12 000 | 43 256 | 55 256 |
--------------------------------------------------------------------------------
| TOTAL | 660 190 | 1 549 858 | 2 210 048 |
--------------------------------------------------------------------------------
| Share of total amount of | 66,6 % | 51,4 % | 55,2 % |
| shares | | | |
--------------------------------------------------------------------------------
| Share of total voting | 66,6 % | 51,4 % | 64,6 % |
| rights | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Administrative registered | | 100 264 | 100 264 |
--------------------------------------------------------------------------------
| OTHER SHAREHOLDERS | 330 971 | 1 363 475 | 1 694 446 |
--------------------------------------------------------------------------------
| 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 | | | | |
--------------------------------------------------------------------------------
| | | 30.6. | 30.6. | 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 | 2 845 097 | 3 013 597 |
| vote/share | | | | |
--------------------------------------------------------------------------------
| Number of shares total | | 4 004 758 | 3 836 258 | 4 004 758 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Trading of series A | | | | |
| shares | | | | |
--------------------------------------------------------------------------------
| Trading of shares, pcs | | 635 650 | 600 721 | 1 088 288 |
--------------------------------------------------------------------------------
| Trading of shares, EUR | | 8,9 | 9,2 | 15,4 |
| million | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Exchange rate of series | | | | |
| A shares | | | | |
--------------------------------------------------------------------------------
| At the end of report | | 14,23 | 13,23 | 12,85 |
| period, EUR | | | | |
--------------------------------------------------------------------------------
| Highest price during | | 14,65 | 17,60 | 17,60 |
| the report period, EUR | | | | |
--------------------------------------------------------------------------------
| Lowest price during the | | 12,40 | 12,44 | 11,60 |
| report period, EUR | | | | |
--------------------------------------------------------------------------------
| Average price during | | 13,87 | 15,13 | 14,03 |
| the report period, EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Market value of capital | | | | |
| stock | | | | |
--------------------------------------------------------------------------------
(Series K shares valued at the value of seris A shares at the end fo reporting
period.
--------------------------------------------------------------------------------
| - Series K shares, EUR | | 14,1 | 13,1 | 12,7 |
| million | | | | |
--------------------------------------------------------------------------------
| - Series A shares, EUR | | 42,9 | 37,6 | 38,7 |
| million | | | | |
--------------------------------------------------------------------------------
| Total, EUR million | | 57,0 | 50,8 | 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 one
of the world's leading suppliers of mill-scale projects to these customer
industries. The total service concept also includes technology services, with
which Raute supports its customers throughout the entire life cycle of their
investments. Raute's head office and main production plant are in Nastola,
Finland. Its other production plants are in the Vancouver area of Canada and in
Jyväskylä and Kajaani, Finland. Net sales in 2006 were EUR 106 million and the
number of personnel 540. More information about the company can be found at
www.raute.com.
DISTRIBUTION:
OMX Nordic Exchange in Helsinki, main media, www.raute.com
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