Raute’s 1Q net sales up 7%

Raute Corporation’s net sales for the first quarter of 2016 was EUR26.4 million, up 7% from the same period in 2015. Europe accounted for 61%, North America for 16%, Russia for 14%, Asia-Pacific for 6%, and South America for 3%.
Operating profit was EUR1.4 million positive and accounted for 5% of net sales. Other operating income for the reporting period includes insurance compensation of EUR0.9 million, relating to the project business.
The 1Q order intake was very low, amounting to EUR13 million, compared to EUR84 million in 1Q 2015. Of the new orders, 53% came from Europe, 18% from North America, 12% from Russia, 11% from South America, and 6% from Asia-Pacific. The strong fluctuation by quarter in the distribution of new orders between the various market areas is typical for project-focused business.
Tapani Kiiski, President and CEO, said: “We can be reasonably satisfied with the net sales and operating profit for the 1Q, which are in line with our estimates based on the order book at the beginning of the year. We were thus successful in executing the projects in our order book mainly as planned.
The volume of order intake was a clear disappointment to us. The economy at large continued to improve slightly in our main markets, but it did not result in a tangible boost for us. In this regard, the situation has changed very little compared to the past few quarters. In my view, our customers’ market situation has remained reasonably good, judging from the demand for our spare parts and active planning of production-related investments by many of our customers.”
Source: Lesprom Network