Raute’s profit outlook for 2020 weakened

Raute’s profit outlook for 2020 has weakened. Net sales are estimated to decline from 2019 and operating profit is estimated to weaken clearly from the year 2019. Previously the company has estimated net sales for 2020 to remain at the same level as in 2019 and operating profit to weaken compared to 2019. In 2019, the Group’s net sales were EUR 151.3 million and the operating profit was EUR 8.5 million.

Raute’s weakened net sales and profit outlook is due to the impacts of the coronavirus pandemic and preventive measures thereof and also to the increased uncertainty of economy as a consequence of them. It is very difficult to forecast the realisation and schedule of the customers’ investment decisions. The risks in the production activities related to the availability of components and the limitations to perform assembly, commissioning and maintenance works at the customers’ mills due to travelling restrictions also result in net sales to decline and result to weaken.

Adaptation to the declined net sales in the production activities of Raute’s units in Finland can be carried out by reducing subcontracting. The need for adaptation measures related to indirect and fixed costs will be considered in the coming weeks.