RAUTE CORPORATION STOCK EXCHANGE RELEASE
5 August 2008 at 09.00 am
RAUTE CORPORATION - INTERIM REPORT JANUARY 1 - JUNE 30, 2008
- Net sales for the reporting period totaled EUR 54.6 million (MEUR 58.7), down
7 percent on the comparison period.
- Operating profit was EUR 3.9 million (MEUR 3.7) and profit before tax EUR 4.2
million (MEUR 4.1).
- Earnings per share were EUR 0.74 (EUR 0.78).
- Order intake amounted to EUR 49 million (MEUR 26). The order book at the end
of the reporting period stood at EUR 50 million (MEUR 49).
- In 2008 net sales are estimated to reach last year's level and Raute is
positioned to continue its good profit development.
MR. TAPANI KIISKI, PRESIDENT AND CEO: GOOD SECOND QUARTER
The second quarter of 2008 was successful for Raute, and we were able to achieve
the level of development I anticipated in the previous interim report. Our net
sales grew as expected on the first quarter and amounted to almost EUR 31
million. Our profitability improved on the first quarter, and our operating
profit was almost 9 percent of net sales. On the part of the entire first half
of the year, we are still lagging behind last year in net sales, but our
operating profit already reached the level of last year's corresponding period.
Order intake was low in the second quarter. As with the low net sales in the
first quarter, this can be considered to be part of the fluctuation which is
typical of project business. Interesting projects are in the planning phase in
so many market areas that I am confident that the order intake will improve in
the near future. Due to our good order book a period of a few months with a
lower order intake will not significantly affect our outlook.
Our improved profitability results from several factors. In the first part of
the year, our order book has been favorable in terms of product and geographical
distribution. In addition, we have managed to keep costs well under control in
the production of project deliveries and technology services.
The outlook of the global economy has weakened considerably. This affects the
investment plans of Raute's customers especially in North America. However,
demand has still, for the present, remained at quite a healthy level in other
market areas. Particularly in Russia, which is an important market area for us,
demand has remained vital. In Russia, high oil and raw material prices will
probably help economic activity and consumption to remain at a high level
despite the slowing down of the global economy.
We seek to continue our positive profit development this year, as well. In
addition to our normal daily routines, we will celebrate the 100-year
anniversary of our company during the third quarter. Already at this point I
would like to thank all our former and present personnel, customers and partners
for the past 100 years. Thanks to you we will be able to celebrate our
anniversary under favorable circumstances.
MARKET SITUATION
Market situation in customer industries
The market situation for the plywood industry has weakened somewhat during the
past months. Publicly reported prices have decreased for almost all types of
plywood and delivery times have become shorter. However, the demand for plywood
remained at a good or normal level except for the North American markets.
The LVL industry, which is strongly dependent on the activity level of the
construction industry, saw a weaker market situation, also outside North
America.
Demand for wood products technology and technology services
Demand for plywood technology remained brisk, except for North America, despite
the leveling-off of the demand for plywood itself. The demand remained most
active in Russia. In addition, promising projects are in the planning phase in
Europe, Asia, Australia and New Zealand, some of which are mill-scale projects.
Investment plans in the LVL industry are also progressing well. The LVL projects
are mainly long-term projects and are thus not sensitive to short-term economic
fluctuations.
The weakened market situation of Raute's most important customer industries, the
plywood and LVL industries, has postponed the project decisions by Raute's
customers. This has contributed to the low intake of project orders in the
second quarter.
Demand for technology services has remained good in all market areas outside
North America.
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 individual machines and equipment units. Technology services include
maintenance, spare parts services, modernizations, consulting, training, and
sales of reconditioned machinery.
The order intake amounted to EUR 49 million (MEUR 26) during the reporting
period. New orders for project deliveries stood at EUR 35 million (MEUR 11), of
which Europe accounted for 57 percent, Russia for 35 percent, North America for
7 percent and other market areas for 1 percent. The order intake for technology
services stood at EUR 14 million (MEUR 15).
The order intake in the second quarter amounted to EUR 16 million (MEUR 12). The
low volume of order intake was attributable to the postponement of project
decisions by several customers. The most important new project order was for
poplar plywood lay-up and pressing lines to be delivered to France. A
significant domestic order was received in technology services, comprising the
modernizations of several peeling lines with Raute's latest technology.
The order book declined by EUR 15 million during the second quarter. The order
book was still at a good level at the end of the reporting period, EUR 50
million (MEUR 49).
Competitive position
Raute's competitive position has remained strong. As the market situation for
customers is becoming more difficult, the value of the competitive advantages
provided by Raute - efficient raw material use, low energy consumption and
savings in labor costs through a high automation rate - will become more
evident.
The unfavorable development of exchange rates has continued. This erodes Raute's
competitiveness, especially in markets where competitors or customers primarily
use the US dollar. Raute's response to this situation is to continue to improve
the efficiency of its own operations, and by developing the distribution of work
with the partner network.
NET SALES AND RESULT
Net sales for the reporting period totaled EUR 54.6 million (MEUR 58.7), down 7
percent on the comparison period. The decline in net sales was due to the
scheduling of new project orders received.
Europe's share of net sales rose to 48 percent (31%), and Russia's to 34 percent
(30%). North America's share was 12 percent (26%) and the share of other market
areas 6 percent (13%). Technology services accounted for 22 percent (25%) of net
sales for the reporting period.
The Group's operating profit was EUR 3.9 million (MEUR 3.7) and accounted for 7
percent (6%) of net sales. The improvement in performance resulted from the
favorable order book in terms of product and geographical distribution as well
as the successful cost management of projects. The result includes EUR 0.5
million in non-recurring costs relating to the adaptation to the continuing weak
market situation in North America.
Profit before tax for the reporting period was EUR 4.2 million (MEUR 4.1) and
profit EUR 2.9 million (MEUR 3.1). Earnings per share were EUR 0.74 (EUR 0.78).
Second-quarter net sales were EUR 30.7 million (MEUR 29.8). Operating profit was
EUR 2.7 million (MEUR 1.8) and accounted for 9 percent (6%) of net sales. Profit
in the second quarter amounted to EUR 2.0 million (MEUR 1.5), and earnings per
share were EUR 0.50 (EUR 0.37).
FINANCING
The Group's financial position remained good. At the end of the reporting
period, gearing was -60.1 percent (-34.9%) and the equity ratio 62.3 percent
(62.9%). The balance sheet total grew by EUR 15.5 million during the reporting
period, totaling EUR 71.9 million (MEUR 56.4) at the end of the period. The
fluctuation in balance sheet items and the key figures based on them is a result
of differences in the timing of customer payments and the cost accumulation from
project deliveries, which is typical of the project business.
Liquid assets stood at EUR 20.2 million (MEUR 10.9) and were up as a result of
the advance payments received. Operating cash flow was EUR 14.7 million (MEUR
-10.7). Cash flow from investment activities totaled EUR -1.8 million (MEUR
-0.7). Cash flow from financing activities totaled EUR -4.0 million (MEUR -1.7).
Interest-bearing liabilities amounted to EUR 0.5 million (MEUR 0.6) at the end
of the reporting period. Unused long-term credit limits amounted to EUR 17
million. The company also has a EUR 10 million commercial paper program.
RESEARCH AND DEVELOPMENT COSTS AND CAPITAL EXPENDITURES
Research and development costs totaled EUR 2.1 million (MEUR 2.2), representing
3.9 percent (3.7%) of net sales.
Investments totaled EUR 1.8 million (MEUR 0.7) and were mainly focused on the
development of production in the Nastola and Shanghai units and on product
development.
PERSONNEL
The Group's headcount at the end of the reporting period was 605 (607). The
number of personnel increased in the units in China and Finland and was reduced
by the adaptation measures implemented in North America. The number of personnel
is also increased by trainees during the summer period. Group companies outside
Finland accounted for 22 percent (24%) of employees. Converted to full-time
employees, the average number of personnel was 572 (564).
OTHER EVENTS DURING THE REPORTING PERIOD
In order to adapt to the drastically weakened market situation in North America,
restructuring measures were taken in Raute's North American companies in April.
The aim is to keep business operations in North America profitable also in a
weak market situation. The number of personnel at the end of June was 81. A
total of EUR 0.5 million of non-recurring costs relating to the restructuring
was recorded in the result for the first quarter.
The registration process for Raute Corporation's representative office in
Moscow was completed at the end of June. Mr. Alexander Kirpichnikov was
appointed as the head of representative office. He has a solid experience of the
Russian plywood industry. Through the local office Raute will further strengthen
its market position in the significant Russian market.
A process of merging Mecano Group Oy to Raute Corporation has been started
within the Group. The aim of the merger is to clarify the Group structure and
make the operation more efficient. The merger has no effect on Mecano's product
offering, customer service or personnel.
EVENTS AFTER THE REPORTING PERIOD
Mr. Pasi Kenola, President of Mecano Group Oy, the Kajaani based Raute's fully
owned subsidiary concentrating on machine vision and measuring technology,
resigned on July 29. Ms. Arja Hakala, CFO of Raute Corporation, was appointed as
the new President effective from July 30.
CORPORATE GOVERNANCE
Raute Corporation's Annual General Meeting was held on April 2, 2008. It adopted
the financial statements for 2007, granted discharge from liability to those
accountable and decided to distribute a dividend of 1.00 euro per share.
The Annual General Meeting on April 2, 2008 elected the company's Board of
Directors for a term that expires at the end of the Annual General Meeting of
2009. Mr. Jarmo Rytilahti was elected Chairman of the Board, Ms. Sinikka
Mustakallio Vice-Chairman and Mr. Ilpo Helander, Mr. Mika Mustakallio, Mr. Panu
Mustakallio 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
(Ilpo Helander and Jorma Wiitakorpi) are independent of major shareholders.
Mr. Jarmo Rytilahti continues as Chairman of the Appointments Committee, and Ms.
Sinikka Mustakallio and Mr. Ville Korhonen - a representative of major
shareholders - act as its members. The Working Committee continues to be chaired
by Mr. Jarmo Rytilahti and its members are Ms. Sinikka Mustakallio and Mr. Jorma
Wiitakorpi.
In the Annual General Meeting, Authorized Public Accountants Ms. Anna-Maija
Simola and Mr. Antti Unkuri were elected as auditors, and Ernst&Young Oy, an
authorized public accounting company, as deputy auditor.
The Annual General Meeting authorized the Board of Directors to decide on the
repurchase of a maximum of 400,000 Raute Corporation series A shares with the
company's distributable assets. The Annual General Meeting authorized the Board
of Directors to decide on the directed issue of a maximum of 400,000 of the
company's series A shares.
DIVIDEND FOR THE YEAR 2007
The Annual General Meeting decided to distribute a dividend of EUR 1.00 per
share for 2007. The total amount of dividends is EUR 4.0 million, series A
shares accounting for 3,013,597.00 euros (EUR 2,109,517.90) and series K shares
for EUR 991,161.00 (EUR 693,812.70). The dividend payment date was April 14,
2008.
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 euros. Series K shares can be converted to series A shares
under the terms described in section 3 of the Articles of Association. If a
series K share is transferred to a new owner who does not previously hold series
K shares, other shareholders of the K series have the right to redeem the share
under the terms described in Section 4 of the Articles of Association.
Raute Corporation's series A shares are listed on the OMX Nordic Exchange,
Helsinki. The trading code is RUTAV. Raute Corporation has signed a market
making agreement with Nordea Bank Finland plc in compliance with the Liquidity
Providing (LP) requirements issued by the Helsinki Stock Exchange.
The company's market capitalization at the end of the reporting period was EUR
50.3 million (MEUR 57.0), with series K shares valued at the closing price of
series A shares on June 30, 2008, that is EUR 12.55 (EUR 14.23).
The company's Board of Directors has been authorized by the Annual General
Meeting to decide on the buyback and directed issue of a maximum of 400,000 of
the company's series A shares. The Board of Directors has not exercised this
authorization.
Other share-related information is presented in the figures section of this
report.
SHAREHOLDERS
The number of shareholders totaled 1,312 at the beginning of the year and 1,456
at the end of the reporting period. Series K shares are held by 46 private
individuals (46). Management held 4.7 percent (4.7%) of the company shares and
9.1 percent (9.1%) of the votes. Nominee-registered shares accounted for 1.8
percent (2.5%) of shares.
The company did not possess company shares during the reporting period or hold
them as security.
No flagging notifications were given to the company in the reporting period.
SEASONAL FLUCTUATION IN BUSINESS
The Group's net sales and working capital fluctuate 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.
CHANGES IN BUSINESS RISKS
During the reporting period, there have been no essential changes in the
business risks described in the Board of Directors' report and financial
statements for 2007.
OUTLOOK FOR 2008
The market situation of Raute's clientele is expected to weaken as the general
economic situation weakens but to remain reasonably good, with the exception of
North America. The demand is brisk in Russia for Raute's technologies and
services and there are several mill-scale projects in the quotation phase.
Due to the development and good order book in the first part of the year, net
sales for 2008 are estimated to reach the previous year's level and Raute is
positioned to continue its good profit development.
TABLES OF CONSOLIDATED FINANCIAL STATEMENTS AND NOTES
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| CONSOLIDATED INCOME STATEMENT | | | | | |
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| (EUR 1 000) | Note | 1.4.- | 1.4.- | 1.1.- | 1.1.- | 1.1.- |
--------------------------------------------------------------------------------
| | | 30.6. | 30.6. | 30.6. | 30.6. | 31.12. |
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| | | 2008 | 2007 | 2008 | 2007 | 2007 |
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--------------------------------------------------------------------------------
| Net sales | 2,3,4 | 30 710 | 29 769 | 54 620 | 58 650 | 110 799 |
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| Other operating | | | | | | |
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| income | | 26 | 19 | 53 | 58 | 461 |
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| Increase (+) or | | | | | | |
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| decrease (-) in | | | | | | |
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| inventories of | | | | | | |
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| finished goods and | | | | | | |
--------------------------------------------------------------------------------
| work in progress | | 381 | -54 | 577 | 192 | 42 |
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| Materials and | | | | | | |
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| services | | 17 293 | 17 439 | 28 954 | 34 436 | 60 999 |
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| Expenses from | | | | | | |
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| employee benefits | 9 | 7 858 | 7 369 | 14 989 | 14 376 | 28 875 |
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| Depreciation, | | | | | | |
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| amortization and | | | | | | |
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| impairment charges | | 720 | 663 | 1 361 | 1 316 | 2 654 |
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| Other operating | | | | | | |
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| expenses | | 2 543 | 2 427 | 6 040 | 5 046 | 10 166 |
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| Total operating | | | | | | |
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| expenses | | 28 413 | 27 898 | 51 343 | 55 174 | 102 695 |
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| Operating profit | 7 | 2 704 | 1 836 | 3 907 | 3 726 | 8 607 |
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| Financial income | | 190 | 191 | 643 | 502 | 660 |
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| Financial expenses | | 22 | -53 | -308 | -105 | -291 |
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| Profit before tax | | 2 916 | 1 973 | 4 242 | 4 124 | 8 976 |
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| Income taxes | | -920 | -478 | -1 293 | -995 | -2 375 |
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| Profit for the period | 6 | 1 996 | 1 495 | 2 949 | 3 129 | 6 601 |
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| Attributable to | | | | | | |
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| Equity holders of the | | | | | | |
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| Parent company | | 1 996 | 1 495 | 2 949 | 3 129 | 6 601 |
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| Earnings per share, | | | | | | |
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| EUR | | | | | | |
--------------------------------------------------------------------------------
| Undiluted earnings | | | | | | |
--------------------------------------------------------------------------------
| per share | | 0,50 | 0,37 | 0,74 | 0,78 | 1,65 |
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| Diluted earnings | | | | | | |
--------------------------------------------------------------------------------
| per share | | 0,50 | 0,37 | 0,74 | 0,78 | 1,65 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shares, 1 000 pcs | | | | | | |
--------------------------------------------------------------------------------
| Adjusted average | | | | | | |
--------------------------------------------------------------------------------
| number of shares | | 4 005 | 4 005 | 4 005 | 4 005 | 4 005 |
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| Adjusted average | | | | | | |
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| number of shares | | | | | | |
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| diluted | | 4 005 | 4 005 | 4 005 | 4 005 | 4 005 |
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| CONSOLIDATED BALANCE SHEET | | | | |
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| (EUR 1 000) | Note | 30.6.2008 | 30.6.2007 | 31.12.2007 |
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| ASSETS | | | | |
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| Non-current assets | | | | |
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| Intangible assets | | 3 152 | 2 838 | 2 546 |
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| Tangible assets | | 11 032 | 12 063 | 10 993 |
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| Available-for-sale | | | | |
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| investments | | 499 | 395 | 449 |
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| Deferred tax assets | | 590 | 331 | 275 |
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| Total | | 15 273 | 15 627 | 14 263 |
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| Current assets | | | | |
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| Inventories | | 4 888 | 5 569 | 4 515 |
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| Accounts receivables and | | | | |
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| other receivables | 4 | 31 517 | 24 264 | 24 739 |
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| Financial assets at | | | | |
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| fair value through | | | | |
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| profit or loss | | 2 116 | 6 418 | 2 144 |
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| Cash and cash equivalents | | 18 108 | 4 530 | 9 140 |
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| Total | | 56 629 | 40 781 | 40 537 |
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| TOTAL ASSETS | 2 | 71 902 | 56 408 | 54 800 |
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| SHAREHOLDERS' EQUITY AND | | | | |
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| LIABILITIES | | | | |
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| Shareholders' equity | | | | |
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| Share capital | | 8 010 | 8 010 | 8 010 |
--------------------------------------------------------------------------------
| Share premium | | 6 498 | 6 498 | 6 498 |
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| Other funds | 9 | -283 | 162 | 161 |
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| Retained earnings | | 15 670 | 11 846 | 11 924 |
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| Net profit for period | | 2 949 | 3 129 | 6 601 |
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| Share of shareholders' | | | | |
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| equity that belongs | | | | |
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| to the owners of | | | | |
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| the Parent company | | 32 844 | 29 645 | 33 194 |
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| Total shareholders' equity | | 32 844 | 29 645 | 33 194 |
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| Long-term liabilities | | | | |
--------------------------------------------------------------------------------
| Provisions | | 1 323 | 244 | 286 |
--------------------------------------------------------------------------------
| Deferred tax liabilities | | 628 | 1 052 | 676 |
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| Long-term interest-bearing | | 348 | 317 | 277 |
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| liabilities | | 2 299 | 1 612 | 1 239 |
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| Total | | | | |
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| Current liabilities | | | | |
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| Provisions | | 1 062 | 1 020 | 971 |
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| Pension obligations | | 217 | 298 | 260 |
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| Short-term interest-bearing | | | | |
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| liabilities | | 150 | 276 | 213 |
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| Advance payments received | 4 | 19 163 | 9 271 | 7 590 |
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| Current tax liabilities | | 948 | 0 | 851 |
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| Trade and other payables | | 15 220 | 14 287 | 10 481 |
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| Total | | 36 760 | 25 151 | 20 367 |
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| Total liabilities | | 39 058 | 26 764 | 21 605 |
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| TOTAL SHAREHOLDERS' EQUITY | | | | |
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| AND LIABILITIES | | 71 902 | 56 408 | 54 800 |
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| CONSOLIDATED CASH FLOW STATEMENT | | | |
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| (EUR 1 000) | 1.1.-30.6. | 1.1.-30.6. | 1.1.-31.12 |
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| | 2008 | 2007 | 2007 |
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| CASH FLOW FROM OPERATING | | | |
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| ACTIVITIES | | | |
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| Proceeds from sales | 62 088 | 48 301 | 96 117 |
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| Proceeds from other | | | |
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| operating income | 48 | 58 | 114 |
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| Payments of operating expenses | -46 591 | -58 527 | -104 963 |
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| Cash flow before financial | | | |
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| items and taxes | 15 545 | -10 169 | -8 732 |
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| Interests and other operating | | | |
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| financial expenses paid | -43 | -105 | -394 |
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| Interests and other income | | | |
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| received | 634 | 387 | 639 |
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| Dividends received | 133 | 115 | 115 |
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| Income taxes paid | -1 561 | -932 | -1 843 |
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| NET CASH FLOW FROM OPERATING | | | |
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| ACTIVITIES (A) | 14 707 | -10 703 | -10 214 |
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| CASH FLOW FROM INVESTING | | | |
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| ACTIVITIES | | | |
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| Capital expenditure in | | | |
--------------------------------------------------------------------------------
| tangible and intangible | | | |
--------------------------------------------------------------------------------
| assets | -1 724 | -678 | -1 964 |
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| Purchases of available-for-sale | | | |
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| as investments | -50 | 0 | -74 |
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| Proceeds from sale of tangible | | | |
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| and intangible assets | 5 | 0 | 1 310 |
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| NET CASH FLOW FROM INVESTING | | | |
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| ACTIVITIES (B) | -1 769 | -678 | -728 |
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| CASH FLOW FROM FINANCING | | | |
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| ACTIVITIES | | | |
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| Repayments of long-term and | | | |
--------------------------------------------------------------------------------
| short-term loan receivables | -2 | 1 000 | 1 000 |
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| Increase of short-term | | | |
--------------------------------------------------------------------------------
| liabilities | -63 | 126 | 63 |
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| Repayment of long-term | | | |
--------------------------------------------------------------------------------
| liabilities | 71 | 0 | -40 |
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| Dividends paid | -4 005 | -2 803 | -2 803 |
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| NET CASH FROM FINANCING | | | |
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| ACTIVITIES (C) | -3 998 | -1 677 | -1 780 |
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| NET CHANGE IN CASH | | | |
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| AND CASH EQUIVALENTS (A+B+C) | | | |
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| increase (+)/decrease (-) | 8 940 | -13 058 | -12 723 |
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| CASH AND CASH EQUIVALENTS | | | |
--------------------------------------------------------------------------------
| AT THE BEGINNING OF THE PERIOD* | 11 284 | 24 006 | 24 006 |
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| CASH AND CASH EQUIVALENTS | | | |
--------------------------------------------------------------------------------
| AT THE END OF THE PERIOD* | 20 224 | 10 948 | 11 284 |
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| CASH AND CASH EQUIVALENTS | | | |
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| IN THE BALANCESHEET | | | |
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| AT THE END OF THE PERIOD | | | |
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| Financial assets at fair | | | |
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| value through profit or loss | 2 116 | 6 418 | 2 144 |
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| Cash and cash equivalents | 18 108 | 4 530 | 9 140 |
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| TOTAL | 20 224 | 10 948 | 11 284 |
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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 | |
--------------------------------------------------------------------------------
| (EUR 1 000) | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Share | Share | Other | Exchange | Retained |
--------------------------------------------------------------------------------
| | capital | premium | funds | rate | earnings |
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| | | | | diff. | |
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| EQUITY | | | | | |
--------------------------------------------------------------------------------
| Jan. 1, 2008 | 8 010 | 6 498 | 125 | 36 | 18 524 |
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| Exchange | | | | | |
--------------------------------------------------------------------------------
| differences | | | | | |
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| from net | | | | | |
--------------------------------------------------------------------------------
| investments | | | -454 | | |
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| Translation | | | | | |
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| differences | | | | 1 114 | |
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| Net income | | | | | |
--------------------------------------------------------------------------------
| recognized | | | | | |
--------------------------------------------------------------------------------
| directly in | | | | | |
--------------------------------------------------------------------------------
| equity | 0 | 0 | -454 | 1 114 | 0 |
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| Profit for | | | | | |
--------------------------------------------------------------------------------
| the period | | | | | 2 949 |
--------------------------------------------------------------------------------
| Total income and | | | | | |
--------------------------------------------------------------------------------
| expenses | | | | | |
--------------------------------------------------------------------------------
| recognized | | | | | |
--------------------------------------------------------------------------------
| in the period | 0 | 0 | -454 | 1 114 | 2 949 |
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| Dividend | | | | | -4 005 |
--------------------------------------------------------------------------------
| Equity-settled | | | | | |
--------------------------------------------------------------------------------
| share-based | | | | | |
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| transactions | | | 46 | | |
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| EQUITY | | | | | |
--------------------------------------------------------------------------------
| June 30, 2008 | 8 010 | 6 498 | -283 | 1 150 | 17 468 |
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| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (continue) |
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| | To owners | | Minority | | EQUITY |
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| | of the | | interest | | TOTAL |
--------------------------------------------------------------------------------
| | parent | | | | |
--------------------------------------------------------------------------------
| | company | | | | |
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| EQUITY | | | | | |
--------------------------------------------------------------------------------
| Jan. 1, 2008 | 33 194 | | 0 | | 33 194 |
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| Exchange | | | | | |
--------------------------------------------------------------------------------
| differences | | | | | |
--------------------------------------------------------------------------------
| from net | | | | | |
--------------------------------------------------------------------------------
| investments | -454 | | | | -454 |
--------------------------------------------------------------------------------
| Translation | | | | | |
--------------------------------------------------------------------------------
| differences | 1 114 | | | | 1 114 |
--------------------------------------------------------------------------------
| Net income | | | | | |
--------------------------------------------------------------------------------
| recognized | | | | | |
--------------------------------------------------------------------------------
| directly in | | | | | |
--------------------------------------------------------------------------------
| equity | 660 | | 0 | | 660 |
--------------------------------------------------------------------------------
| Profit for | | | | | |
--------------------------------------------------------------------------------
| the period | 2 949 | | | | 2 949 |
--------------------------------------------------------------------------------
| Total income and | | | | | |
--------------------------------------------------------------------------------
| expenses | | | | | |
--------------------------------------------------------------------------------
| recognized | | | | | |
--------------------------------------------------------------------------------
| in the period | 3 609 | | 0 | | 3 609 |
--------------------------------------------------------------------------------
| Dividend | -4 005 | | | | -4 005 |
--------------------------------------------------------------------------------
| Equity-settled | | | | | |
--------------------------------------------------------------------------------
| share-based | | | | | |
--------------------------------------------------------------------------------
| transactions | 46 | | | | 46 |
--------------------------------------------------------------------------------
| EQUITY | | | | | |
--------------------------------------------------------------------------------
| June 30, 2008 | 32 844 | | 0 | | 32 844 |
--------------------------------------------------------------------------------
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| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY | |
--------------------------------------------------------------------------------
| (EUR 1 000) | | | | | |
--------------------------------------------------------------------------------
| | 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 | | | | | |
--------------------------------------------------------------------------------
| from net | | | | | |
--------------------------------------------------------------------------------
| investments | | | 333 | | |
--------------------------------------------------------------------------------
| Translation | | | | | |
--------------------------------------------------------------------------------
| differences | | | | -351 | |
--------------------------------------------------------------------------------
| Net income | | | | | |
--------------------------------------------------------------------------------
| recognized | | | | | |
--------------------------------------------------------------------------------
| directly in | | | | | |
--------------------------------------------------------------------------------
| equity | 0 | 0 | 333 | -351 | 0 |
--------------------------------------------------------------------------------
| Profit for | | | | | |
--------------------------------------------------------------------------------
| the period | | | | | 3 129 |
--------------------------------------------------------------------------------
| Total income and | | | | | |
--------------------------------------------------------------------------------
| expenses | | | | | |
--------------------------------------------------------------------------------
| recognized | | | | | |
--------------------------------------------------------------------------------
| in the period | 0 | 0 | 333 | -351 | 3 129 |
--------------------------------------------------------------------------------
| 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) |
--------------------------------------------------------------------------------
| | To owners | | Minority | | EQUITY |
--------------------------------------------------------------------------------
| | of the | | interest | | TOTAL |
--------------------------------------------------------------------------------
| | parent | | | | |
--------------------------------------------------------------------------------
| | company | | | | |
--------------------------------------------------------------------------------
| EQUITY | | | | | |
--------------------------------------------------------------------------------
| Jan. 1, 2007 | 29 308 | | 0 | | 29 308 |
--------------------------------------------------------------------------------
| Exchange | | | | | |
--------------------------------------------------------------------------------
| differences | | | | | |
--------------------------------------------------------------------------------
| from net | | | | | |
--------------------------------------------------------------------------------
| investments | 333 | | | | 333 |
--------------------------------------------------------------------------------
| Translation | | | | | |
--------------------------------------------------------------------------------
| differences | -351 | | | | -351 |
--------------------------------------------------------------------------------
| Net income | | | | | |
--------------------------------------------------------------------------------
| recognized | | | | | |
--------------------------------------------------------------------------------
| directly in | | | | | |
--------------------------------------------------------------------------------
| equity | -18 | | 0 | | -18 |
--------------------------------------------------------------------------------
| Profit for | | | | | |
--------------------------------------------------------------------------------
| the period | 3 129 | | | | 3 129 |
--------------------------------------------------------------------------------
| Total income and | | | | | |
--------------------------------------------------------------------------------
| expenses | | | | | |
--------------------------------------------------------------------------------
| recognized | | | | | |
--------------------------------------------------------------------------------
| in the period | 3 111 | | 0 | | 3 111 |
--------------------------------------------------------------------------------
| Dividend | -2 803 | | | | -2 803 |
--------------------------------------------------------------------------------
| Equity-settled | | | | | |
--------------------------------------------------------------------------------
| share-based | | | | | |
--------------------------------------------------------------------------------
| transactions | 29 | | | | 29 |
--------------------------------------------------------------------------------
| liiketoimet | | | | | |
--------------------------------------------------------------------------------
| EQUITY | | | | | |
--------------------------------------------------------------------------------
| June 30, 2007 | 29 645 | | 0 | | 29 645 |
--------------------------------------------------------------------------------
NOTES
General information
Raute Group (‘Group') is a globally operating technology corporation, whose core
business consists of the production processes of veneer-based wood products.
Project deliveries include complete mills, production lines, and single
machines. Full-service technology services include spare part, maintenance, and
modernization services, as well as services related to developing customers'
businesses.
The Group's Parent company, Raute Corporation, is a Finnish public limited
liability company established in accordance with Finnish law (Business ID
FI01490726). Its series A shares are quoted on OMX Nordic Exchange, Helsinki,
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.
A copy of the Consolidated financial statements is 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 4 August 2008 reviewed the Group's
Interim financial statements for January 1 - June 30, 2008, and decided to
publish Raute Corporation's Interim financial reporting for January 1 - June 30,
2008, in compliance with this release.
1. Accounting principles
Raute Corporation's Interim financial reporting has been prepared in compliance
with IAS 34.
Raute Group's Interim financial statements for January 1 - June 30, 2008,
included in the Interim financial reporting do not contain full notes and other
information presented in the financial statements. Therefore, the Interim
financial reporting should be read in conjunction with the Financial statements
published for 2007.
The figures presented in the Interim financial reporting have not been audited.
Figures in parentheses refer to the corresponding figures in the comparison
year. All the monetary figures presented in this interim report are in thousands
euros, unless otherwise stated. Due to the roundings of the figures in the
interim financial statement tables, the sums of figures may deviate from the sum
total presented in the table.
The preparation of interim financial statements according to IFRS requires
management to use estimates and assumptions that affect the assets and
liabilities on the balance sheet date, as well as the income and expenses for
the financial period. Because the forward-looking estimates and assumptions are
based on management's best knowledge at the interim time, they comprise risks
and uncertainties. The actual results may differ from these estimates.
The following standards have taken effect during the interim period, but
according to the management's view, they do not affect the performance, the
financial condition or the notes of the Group:
- IFRIC 11, IFRS 2: Group and Treasury Share Transactions
- IFRIC 12, Service Concession Arrangements
- IFRIC 14, IAS 19: The Limit and Defined Benefit Assets, Minimum Funding
Requirements and their Interaction
In other respects, the Group has followed the accounting principles described in
the Financial statements for 2007.
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 percent 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 | 2008 | % | 2007 | % | 2007 | % |
--------------------------------------------------------------------------------
| location | | | | | | |
--------------------------------------------------------------------------------
| Europe | 26 190 | 48 | 18 322 | 31 | 34 117 | 31 |
--------------------------------------------------------------------------------
| Russia | 18 796 | 34 | 17 601 | 30 | 38 314 | 35 |
--------------------------------------------------------------------------------
| North America | 6 454 | 12 | 15 374 | 26 | 24 047 | 22 |
--------------------------------------------------------------------------------
| South America | 2 617 | 5 | 5 734 | 10 | 11 485 | 10 |
--------------------------------------------------------------------------------
| Others | 563 | 1 | 1 619 | 3 | 2 836 | 3 |
--------------------------------------------------------------------------------
| TOTAL | 54 620 | 100 | 58 650 | 100 | 110 799 | 100 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets by geographical | | | | | | |
--------------------------------------------------------------------------------
| location | | | | | | |
--------------------------------------------------------------------------------
| Europe | 65 172 | 91 | 48 535 | 86 | 48 822 | 89 |
--------------------------------------------------------------------------------
| Russia | 934 | 1 | 376 | 1 | 1 048 | 2 |
--------------------------------------------------------------------------------
| North America | 4 206 | 6 | 6 092 | 11 | 3 275 | 6 |
--------------------------------------------------------------------------------
| South America | 62 | 0 | 47 | 0 | 34 | 0 |
--------------------------------------------------------------------------------
| Others | 1 528 | 2 | 1 357 | 2 | 1 621 | 3 |
--------------------------------------------------------------------------------
| TOTAL | 71 902 | 100 | 56 408 | 100 | 54 800 | 100 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital expenditure by | | | | | | |
--------------------------------------------------------------------------------
| geographical location | | | | | | |
--------------------------------------------------------------------------------
| Europe | 1 411 | 80 | 468 | 69 | 1 411 | 75 |
--------------------------------------------------------------------------------
| Russia | 1 | 0 | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| North America | 16 | 1 | 72 | 11 | 74 | 4 |
--------------------------------------------------------------------------------
| South America | 20 | 1 | 0 | 0 | 4 | 0 |
--------------------------------------------------------------------------------
| Others | 312 | 18 | 138 | 20 | 380 | 20 |
--------------------------------------------------------------------------------
| TOTAL | 1 760 | 100 | 678 | 100 | 1 869 | 100 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 3. Proceeds from sales | | | | | | |
--------------------------------------------------------------------------------
| | 1.1.- | | 1.1.- | | 1.1.- | |
--------------------------------------------------------------------------------
| Net sales | 30.6. | | 30.6. | | 31.12. | |
--------------------------------------------------------------------------------
| by market area | 2008 | % | 2007 | % | 2007 | % |
--------------------------------------------------------------------------------
| Rest of Europe | 19 440 | 36 | 11 767 | 20 | 20 077 | 18 |
--------------------------------------------------------------------------------
| Russia | 18 796 | 34 | 17 601 | 30 | 38 314 | 35 |
--------------------------------------------------------------------------------
| Finland | 6 750 | 12 | 6 555 | 11 | 14 040 | 13 |
--------------------------------------------------------------------------------
| North America | 6 454 | 12 | 15 374 | 26 | 24 047 | 22 |
--------------------------------------------------------------------------------
| South America | 2 617 | 5 | 5 734 | 10 | 11 485 | 10 |
--------------------------------------------------------------------------------
| Asia | 279 | 1 | 820 | 1 | 915 | 1 |
--------------------------------------------------------------------------------
| Oceania | 106 | 0 | 303 | 1 | 979 | 1 |
--------------------------------------------------------------------------------
| Others | 178 | 0 | 496 | 1 | 942 | 1 |
--------------------------------------------------------------------------------
| TOTAL | 54 620 | 100 | 58 650 | 100 | 110 799 | 100 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 4. Long-term projects | 30.6.2008 | 30.6.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| Net sales | | | |
--------------------------------------------------------------------------------
| Net sales by percentage | 45 544 | 51 495 | 94 905 |
--------------------------------------------------------------------------------
| of completion | | | |
--------------------------------------------------------------------------------
| Other net sales | 9 076 | 7 156 | 15 894 |
--------------------------------------------------------------------------------
| TOTAL | 54 620 | 58 650 | 110 799 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Project revenues entered | | | |
--------------------------------------------------------------------------------
| as income from currently | | | |
--------------------------------------------------------------------------------
| undelivered long-term | | | |
--------------------------------------------------------------------------------
| projects recognized | | | |
--------------------------------------------------------------------------------
| by percentage of completion | 107 863 | 96 817 | 120 722 |
--------------------------------------------------------------------------------
| Amount of long-term project | | | |
--------------------------------------------------------------------------------
| revenues not yet | | | |
--------------------------------------------------------------------------------
| entered as income | 47 435 | 43 419 | 53 474 |
--------------------------------------------------------------------------------
| Specification of combined | | | |
--------------------------------------------------------------------------------
| asset and liability items: | | | |
--------------------------------------------------------------------------------
| Accrued income | | | |
--------------------------------------------------------------------------------
| corresponding to revenues | | | |
--------------------------------------------------------------------------------
| by percentage of completion | 107 623 | 97 769 | 120 942 |
--------------------------------------------------------------------------------
| Advances received from | | | |
--------------------------------------------------------------------------------
| project customers | -92 425 | -83 054 | -102 601 |
--------------------------------------------------------------------------------
| Project receivables included | | | |
--------------------------------------------------------------------------------
| in current assets | 15 198 | 14 715 | 18 341 |
--------------------------------------------------------------------------------
| Advance payments received | | | |
--------------------------------------------------------------------------------
| in the Balance Sheet | 19 163 | 9 271 | 7 590 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 5. Number of personnel, persons | 30.6.2008 | 30.6.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| - Effective, on average | 572 | 564 | 566 |
--------------------------------------------------------------------------------
| - In books, on average | 584 | 569 | 575 |
--------------------------------------------------------------------------------
| - In books, at the end of period, | 605 | 607 | 570 |
--------------------------------------------------------------------------------
| - of which personnel working | | | |
--------------------------------------------------------------------------------
| abroad | 136 | 147 | 140 |
--------------------------------------------------------------------------------
6. Income taxes
Income taxes represent the tax corresponding to the period's result, based on
the estimated full-year tax rate. The effective tax rate of the reporting period
is 30.5 percent.
--------------------------------------------------------------------------------
| 7. Research and development costs | 30.6.2008 | 30.6.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| Research and development costs | | | |
--------------------------------------------------------------------------------
| for the period | 2 127 | 2 184 | 3 969 |
--------------------------------------------------------------------------------
| Depreciation of capitalized | | | |
--------------------------------------------------------------------------------
| development costs | 248 | 183 | 367 |
--------------------------------------------------------------------------------
| Recognized as assets | | | |
--------------------------------------------------------------------------------
| in balance sheet | -538 | -202 | -233 |
--------------------------------------------------------------------------------
| Research and development | | | |
--------------------------------------------------------------------------------
| costs entered as expenses | | | |
--------------------------------------------------------------------------------
| for the period | 1 837 | 2 165 | 4 103 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 8. Property, plant and equipment, | 30.6.2008 | 30.6.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| changes | | | |
--------------------------------------------------------------------------------
| Carrying amount at Jan. 1 | 40 008 | 40 411 | 40 411 |
--------------------------------------------------------------------------------
| Exchange rate differences | -946 | -577 | 4 |
--------------------------------------------------------------------------------
| Additions | 1 098 | 388 | 1 263 |
--------------------------------------------------------------------------------
| Disposals | 0 | 0 | -1 558 |
--------------------------------------------------------------------------------
| Other reclassifications between | | | |
--------------------------------------------------------------------------------
| items | -152 | -124 | -112 |
--------------------------------------------------------------------------------
| Carrying amount at the end | | | |
--------------------------------------------------------------------------------
| of the period | 40 009 | 40 097 | 40 008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Accumulated depreciation and | | | |
--------------------------------------------------------------------------------
| amortization at Jan. 1 | -29 014 | -27 868 | -27 868 |
--------------------------------------------------------------------------------
| Exchange rate differences | 812 | 618 | 2 |
--------------------------------------------------------------------------------
| Accumulated depreciations on | | | |
--------------------------------------------------------------------------------
| disposals | 0 | 0 | -50 |
--------------------------------------------------------------------------------
| Depreciation for the | | | |
--------------------------------------------------------------------------------
| financial period | -775 | -785 | -1 574 |
--------------------------------------------------------------------------------
| Impairments | 0 | 0 | 477 |
--------------------------------------------------------------------------------
| Accumulated depreciation and | | | |
--------------------------------------------------------------------------------
| amortization at the end | | | |
--------------------------------------------------------------------------------
| of the period | -28 977 | -28 035 | -29 014 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Book value at the beginnig | | | |
--------------------------------------------------------------------------------
| of the period | 10 993 | 12 542 | 12 542 |
--------------------------------------------------------------------------------
| Book value at the end | | | |
--------------------------------------------------------------------------------
| of the period | 11 032 | 12 063 | 10 993 |
--------------------------------------------------------------------------------
9. Share-based payments
The effect of the share-based remunerations to the profit of Raute Group was
EUR 12 thousand. At the end of the period the current value of the cash portion
was EUR 12.55 per share. The fair value of granted share-based remunerations was
EUR 0.4 million in total.
--------------------------------------------------------------------------------
| 10. Other leases and operating | 30.6.2008 | 30.6.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| lease liabilities | | | |
--------------------------------------------------------------------------------
| Group as lessee | | | |
--------------------------------------------------------------------------------
| Minimum rents paid on the basis of | | | |
--------------------------------------------------------------------------------
| other non-cancellable leases: | | | |
--------------------------------------------------------------------------------
| - Within one year | 194 | 96 | 127 |
--------------------------------------------------------------------------------
| - After the period of more than 1 | | | |
--------------------------------------------------------------------------------
| and less than 5 years | 402 | 487 | 370 |
--------------------------------------------------------------------------------
| TOTAL | 596 | 583 | 497 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The Group has rented in a part of its business premises in use. |
--------------------------------------------------------------------------------
| The rental agreements are made for fixed-term. The agreements include an |
--------------------------------------------------------------------------------
| option to extend the rental period after the date of initial expiration. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Minimum direct leasing rents | | | |
--------------------------------------------------------------------------------
| paid on the basis of | | | |
--------------------------------------------------------------------------------
| non-cancellable direct leasing | | | |
--------------------------------------------------------------------------------
| contracts: | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| - Within one year | 59 | 50 | 60 |
--------------------------------------------------------------------------------
| - After the period of more than 1 | | | |
--------------------------------------------------------------------------------
| and less than 5 years | 32 | 55 | 60 |
--------------------------------------------------------------------------------
| TOTAL | 91 | 105 | 120 |
--------------------------------------------------------------------------------
11. Pledged assets and contingent liabilities
Pledged assets
Debts secured by mortgages
Raute Group has on June 30, 2008 long-term bilateral credit facilities worth EUR
17 million, which were unused during the period.
Raute Corporation has a EUR 10 million domestic commercial paper program, which
is arranged by Nordea Bank Finland plc. Within the limits of the program, the
company can issue commercial papers maturing in less than one year.
--------------------------------------------------------------------------------
| Contingent liabilities and | 30.6.2008 | 30.6.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| other liabilities | | | |
--------------------------------------------------------------------------------
| For own debt | | | |
--------------------------------------------------------------------------------
| - Mortgages on real property | 134 | 1 058 | 134 |
--------------------------------------------------------------------------------
| - Business mortgages | 10 000 | 10 000 | 10 000 |
--------------------------------------------------------------------------------
| Security for Group's liabilities | | | |
--------------------------------------------------------------------------------
| - Bank guarantees | 32 915 | 18 727 | 17 584 |
--------------------------------------------------------------------------------
| Other own liabilities | | | |
--------------------------------------------------------------------------------
| Leasing and rent liabilities | | | |
--------------------------------------------------------------------------------
| - For the current accounting | | | |
--------------------------------------------------------------------------------
| period | 253 | 146 | 187 |
--------------------------------------------------------------------------------
| - For subsequent accounting | | | |
--------------------------------------------------------------------------------
| periods | 434 | 542 | 430 |
--------------------------------------------------------------------------------
No loans or pledges have been given or other commitments made on behalf of the
company's management or shareholders.
--------------------------------------------------------------------------------
| 12. Currency derivatives | 30.6.2008 | 30.6.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Currency derivatives are used for hedging purposes. | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Nominal values of forward | | | |
--------------------------------------------------------------------------------
| contracts in foreign currency | | | |
--------------------------------------------------------------------------------
| Economic hedging | | | |
--------------------------------------------------------------------------------
| - Related to financing | 3 459 | 3 268 | 3 277 |
--------------------------------------------------------------------------------
| - Related to hedging of net sales | 1 710 | 3 491 | 2 481 |
--------------------------------------------------------------------------------
| Hedge accounting | | | |
--------------------------------------------------------------------------------
| - Related to the hedging of | | | |
--------------------------------------------------------------------------------
| net sales | 0 | 6 131 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Fair values of forward contracts | | | |
--------------------------------------------------------------------------------
| in foreign currency | | | |
--------------------------------------------------------------------------------
| Economic hedging | | | |
--------------------------------------------------------------------------------
| - Related to financing | 31 | -166 | -30 |
--------------------------------------------------------------------------------
| - Related to the hedging | | | |
--------------------------------------------------------------------------------
| of net sales | 8 | 187 | 360 |
--------------------------------------------------------------------------------
| Hedge accounting | | | |
--------------------------------------------------------------------------------
| - Related to the hedging of | | | |
--------------------------------------------------------------------------------
| net sales | 0 | 255 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GROUP KEY RATIOS | | | |
--------------------------------------------------------------------------------
| (EUR 1 000) | 1.1.-30.6. | 1.1.-30.6. | 1.1.-31.12. |
--------------------------------------------------------------------------------
| | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on investment (ROI), % | 27,2 | 28,2 | 29,2 |
--------------------------------------------------------------------------------
| Return on equity (ROE), % | 17,9 | 21,2 | 21,1 |
--------------------------------------------------------------------------------
| Quick ratio | 2,9 | 2,2 | 2,8 |
--------------------------------------------------------------------------------
| Gearing, % | -60,1 | -34,9 | -32,5 |
--------------------------------------------------------------------------------
| Equity ratio, % | 62,3 | 62,9 | 70,3 |
--------------------------------------------------------------------------------
| Order book, MEUR | 50 | 49 | 56 |
--------------------------------------------------------------------------------
| Order intake, MEUR | 49 | 26 | 90 |
--------------------------------------------------------------------------------
| Exported portion of net sales, % | 87,6 | 88,8 | 87,3 |
--------------------------------------------------------------------------------
| Change in net sales, % | -6,9 | 6,5 | 4,3 |
--------------------------------------------------------------------------------
| Gross capital expenditure, MEUR | 1,8 | 0,7 | 1,9 |
--------------------------------------------------------------------------------
| % of net sales | 3,2 | 1,2 | 1,7 |
--------------------------------------------------------------------------------
| Research and development, MEUR | 2,1 | 2,2 | 4,0 |
--------------------------------------------------------------------------------
| % of net sales | 3,9 | 3,7 | 3,6 |
--------------------------------------------------------------------------------
| Earnings per share (EPS), EUR | | | |
--------------------------------------------------------------------------------
| - basic | 0,74 | 0,78 | 1,65 |
--------------------------------------------------------------------------------
| - diluted | 0,74 | 0,78 | 1,65 |
--------------------------------------------------------------------------------
| Equity to share, EUR | 8,20 | 7,40 | 8,29 |
--------------------------------------------------------------------------------
| Dividend per share | | | |
--------------------------------------------------------------------------------
| series K shares, EUR | | | 1,00 |
--------------------------------------------------------------------------------
| Dividend per share | | | |
--------------------------------------------------------------------------------
| series A shares, EUR | | | 1,00 |
--------------------------------------------------------------------------------
| Dividend per profit, % | | | 60,7 |
--------------------------------------------------------------------------------
| Effective dividend return, % | | | 7,0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share price at the end of | | | |
--------------------------------------------------------------------------------
| the period, EUR | 12,55 | 14,23 | 14,35 |
--------------------------------------------------------------------------------
| Number of shares | | | |
--------------------------------------------------------------------------------
| - weighted average, 1 000 pcs | 4 005 | 4 005 | 4 005 |
--------------------------------------------------------------------------------
| - diluted, 1 000 pcs | 4 005 | 4 005 | 4 005 |
--------------------------------------------------------------------------------
The formulas used to calculate key ratios are described on page 72 of the Annual
Report 2007.
THE DEVELOPMENT OF QUARTERLY RESULTS
--------------------------------------------------------------------------------
| | Q 2 | Q 1 | Q 4 | Q 3 | Rolling | Rolling |
--------------------------------------------------------------------------------
| | 2008 | 2008 | 2007 | 2007 | 1.7.2007 | 1.7.2006 |
--------------------------------------------------------------------------------
| | | | | | - | - |
--------------------------------------------------------------------------------
| | | | | | 30.6.2008 | 30.6.2007 |
--------------------------------------------------------------------------------
| NET SALES | 30 710 | 23 910 | 25 683 | 26 466 | 106 769 | 109 810 |
--------------------------------------------------------------------------------
| Other operating | | | | | | |
--------------------------------------------------------------------------------
| income | 26 | 27 | 386 | 17 | 456 | 160 |
--------------------------------------------------------------------------------
| Increase (+) or | | | | | | |
--------------------------------------------------------------------------------
| decrease (-) in | | | | | | |
--------------------------------------------------------------------------------
| inventories of | | | | | | |
--------------------------------------------------------------------------------
| finished goods | | | | | | |
--------------------------------------------------------------------------------
| and work | | | | | | |
--------------------------------------------------------------------------------
| in progress | 381 | 196 | -252 | 103 | 427 | -329 |
--------------------------------------------------------------------------------
| Materials and | | | | | | |
--------------------------------------------------------------------------------
| services | 17 293 | 11 661 | 11 910 | 14 653 | 55 517 | 64 072 |
--------------------------------------------------------------------------------
| Expenses from | | | | | | |
--------------------------------------------------------------------------------
| employee | | | | | | |
--------------------------------------------------------------------------------
| benefits | 7 858 | 7 131 | 8 103 | 6 397 | 29 489 | 27 012 |
--------------------------------------------------------------------------------
| Depreciation, | | | | | | |
--------------------------------------------------------------------------------
| amortization | | | | | | |
--------------------------------------------------------------------------------
| and impairment | | | | | | |
--------------------------------------------------------------------------------
| charges | 720 | 641 | 654 | 684 | 2 699 | 2 803 |
--------------------------------------------------------------------------------
| Other operating | | | | | | |
--------------------------------------------------------------------------------
| expenses | 2 543 | 3 497 | 2 709 | 2 412 | 11 160 | 10 053 |
--------------------------------------------------------------------------------
| Total operating | | | | | | |
--------------------------------------------------------------------------------
| expenses | 28 413 | 22 931 | 23 376 | 24 146 | 98 865 | 103 940 |
--------------------------------------------------------------------------------
| OPERATING | | | | | | |
--------------------------------------------------------------------------------
| PROFIT | 2 704 | 1 202 | 2 441 | 2 440 | 8 788 | 5 701 |
--------------------------------------------------------------------------------
| % of net sales | 9 | 5 | 10 | 9 | 8 | 5 |
--------------------------------------------------------------------------------
| Financial income| 190 | 453 | 159 | -1 | 801 | 884 |
--------------------------------------------------------------------------------
| Financial | | | | | | |
--------------------------------------------------------------------------------
| expenses | 22 | -330 | -129 | -57 | -494 | -282 |
--------------------------------------------------------------------------------
| PROFIT BEFORE | | | | | | |
--------------------------------------------------------------------------------
| TAX | 2 916 | 1 325 | 2 470 | 2 382 | 9 094 | 6 303 |
--------------------------------------------------------------------------------
| % of net sales | 9 | 6 | 10 | 9 | 9 | 6 |
--------------------------------------------------------------------------------
| Income taxes | -920 | -373 | -844 | -536 | -2 673 | -1 777 |
--------------------------------------------------------------------------------
| PROFIT FOR THE | | | | | | |
--------------------------------------------------------------------------------
| PERIOD | 1 996 | 952 | 1 626 | 1 845 | 6 421 | 4 525 |
--------------------------------------------------------------------------------
| % of net sales | 6 | 4 | 6 | 7 | 6 | 4 |
--------------------------------------------------------------------------------
| Breakdown | | | | | | |
--------------------------------------------------------------------------------
| Share of profit | | | | | | |
--------------------------------------------------------------------------------
| that belongs to | | | | | | |
--------------------------------------------------------------------------------
| owners of the | | | | | | |
--------------------------------------------------------------------------------
| Parent company | 1 996 | 952 | 1 626 | 1 845 | 6 420 | 4 525 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | | | | | | |
--------------------------------------------------------------------------------
| share, EUR | | | | | | |
--------------------------------------------------------------------------------
| Undiluted | | | | | | |
--------------------------------------------------------------------------------
| Earnings per | | | | | | |
--------------------------------------------------------------------------------
| share | 0,50 | 0,24 | 0,41 | 0,46 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Diluted earnings| | | | | | |
--------------------------------------------------------------------------------
| per share | 0,50 | 0,24 | 0,41 | 0,46 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shares, | | | | | | |
--------------------------------------------------------------------------------
| 1 000 pcs | | | | | | |
--------------------------------------------------------------------------------
| Adjusted | | | | | | |
--------------------------------------------------------------------------------
| average number | | | | | | |
--------------------------------------------------------------------------------
| of shares | 4 005 | 4 005 | 4 005 | 4 005 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Adjusted | | | | | | |
--------------------------------------------------------------------------------
| average number | | | | | | |
--------------------------------------------------------------------------------
| of shares, | | | | | | |
--------------------------------------------------------------------------------
| diluted | 4 005 | 4 005 | 4 005 | 4 005 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 20 LARGEST SHAREHOLDERS AT | | | |
--------------------------------------------------------------------------------
| 30 JUNE, 2008 | Number of | Number of | |
--------------------------------------------------------------------------------
| | series K- | series A- | |
--------------------------------------------------------------------------------
| | shares | shares | Total |
--------------------------------------------------------------------------------
| | (20 votes | (1 vote | number |
--------------------------------------------------------------------------------
| | per share) | per share) | of shares |
--------------------------------------------------------------------------------
| 1. Sundholm Göran | | 525 000 | 525 000 |
--------------------------------------------------------------------------------
| 2. Hietala Pekka Tapani | | 181 900 | 181 900 |
--------------------------------------------------------------------------------
| 3. Suominen Jussi Matias | 48 000 | 74 759 | 122 759 |
--------------------------------------------------------------------------------
| 4. Mustakallio Kari Pauli | 60 480 | 60 009 | 120 489 |
--------------------------------------------------------------------------------
| 5. Suominen Tiina Sini-Maria | 48 000 | 67 096 | 115 096 |
--------------------------------------------------------------------------------
| 6. Kirmo Kaisa Marketta | 50 280 | 64 052 | 114 332 |
--------------------------------------------------------------------------------
| 7. Suominen Pekka Matias | 48 000 | 64 159 | 112 159 |
--------------------------------------------------------------------------------
| 8. Siivonen Osku Pekka | 50 640 | 53 539 | 104 179 |
--------------------------------------------------------------------------------
| 9. Keskiaho Kaija Leena | 33 600 | 51 116 | 84 716 |
--------------------------------------------------------------------------------
| 10. Särkijärvi Riitta | 60 480 | 22 009 | 82 489 |
--------------------------------------------------------------------------------
| 11. Mustakallio Mika | 39 750 | 42 670 | 82 420 |
--------------------------------------------------------------------------------
| 12. Mustakallio Risto | 42 240 | 35 862 | 78 102 |
--------------------------------------------------------------------------------
| 13. Mustakallio Ulla Sinikka | 47 240 | 30 862 | 78 102 |
--------------------------------------------------------------------------------
| 14. Sr Arvo Finland Value | | 63 042 | 63 042 |
--------------------------------------------------------------------------------
| 15. Mustakallio Marja Helena | 42 240 | 20 662 | 62 902 |
--------------------------------------------------------------------------------
| 16. Kirmo Lasse Antti | 30 000 | 26 200 | 56 200 |
--------------------------------------------------------------------------------
| 17. Särkijärvi Timo Juha | 12 000 | 43 256 | 55 256 |
--------------------------------------------------------------------------------
| 18. Särkijärvi-Martinez Anu Riitta | 12 000 | 43 256 | 55 256 |
--------------------------------------------------------------------------------
| 19. Mustakallio Kai Henrik | 47 420 | 6 994 | 54 414 |
--------------------------------------------------------------------------------
| 20. Suominen Jukka Matias | 24 960 | 27 964 | 52 924 |
--------------------------------------------------------------------------------
| TOTAL | 697 330 | 1 504 407 | 2 201 737 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share of total amount of shares, % | 70,4 | 49,9 | 55,0 |
--------------------------------------------------------------------------------
| Share of total voting rights, % | 70,4 | 49,9 | 67,7 |
--------------------------------------------------------------------------------
| Administrative registered | | 73 907 | 73 907 |
--------------------------------------------------------------------------------
| Other shareholders | 293 831 | 1 435 283 | 1 729 114 |
--------------------------------------------------------------------------------
| TOTAL | 991 161 | 3 013 597 | 4 004 758 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| MANAGEMENT'S SHAREHOLDING | 98 990 | 90 838 | 189 828 |
--------------------------------------------------------------------------------
| Share of total amount of shares, % | 10,0 | 3,0 | 4,7 |
--------------------------------------------------------------------------------
| Share of total voting rights, % | 10,0 | 3,0 | 9,1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHARE INFORMATION | 30.6.2008 | 30.6.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Number of shares | | | |
--------------------------------------------------------------------------------
| - Series K shares, ordinary shares | | | |
--------------------------------------------------------------------------------
| (20 votes/share) | 991 161 | 991 161 | 991 161 |
--------------------------------------------------------------------------------
| - Series A shares | | | |
--------------------------------------------------------------------------------
| (1 vote/share) | 3 013 597 | 3 013 597 | 3 013 597 |
--------------------------------------------------------------------------------
| Total | 4 004 758 | 4 004 758 | 4 004 758 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Trading of series A shares | | | |
--------------------------------------------------------------------------------
| Trading of shares, pcs | 211 886 | 635 650 | 981 095 |
--------------------------------------------------------------------------------
| Trading of shares, MEUR | 3,0 | 8,9 | 13,7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Exchange rate of series A shares | | | |
--------------------------------------------------------------------------------
| At the end of report period, EUR | 12,55 | 14,23 | 14,35 |
--------------------------------------------------------------------------------
| Highest price during | | | |
--------------------------------------------------------------------------------
| the report period, EUR | 15,20 | 14,65 | 15,45 |
--------------------------------------------------------------------------------
| Lowest price during | | | |
--------------------------------------------------------------------------------
| the report period, EUR | 12,39 | 12,40 | 12,40 |
--------------------------------------------------------------------------------
| Average price during | | | |
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| the report period, EUR | 13,98 | 13,87 | 13,85 |
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| Market value of capital stock | | | |
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| Series K shares valued at the | | | |
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| value of series A shares | | | |
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| at the end of reporting period. | | | |
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| - Series K shares, MEUR | 12,4 | 14,1 | 14,2 |
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| - Series A shares, MEUR | 37,8 | 42,9 | 43,2 |
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| Total, MEUR | 50,3 | 57,0 | 57,5 |
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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, in the
Shanghai area of China, and in Jyväskylä and Kajaani, Finland. Net sales in 2007
were EUR 111 million and the number of personnel 570. More information on the
company can be found at www.raute.com.
DISTRIBUTION:
OMX Nordic Exchange, Helsinki, main media, www.raute.com
