Raute Corporation - Interim report January 1 - June 30, 2014

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Nastola, Finland, 2014-07-29 08:02 CEST (GLOBE NEWSWIRE) -- RAUTE CORPORATION  INTERIM REPORT  JULY 29, 2014 AT 9:00 A.M.


RAUTE CORPORATION – INTERIM REPORT JANUARY 1 – JUNE 30, 2014

- The Group’s net sales, EUR 35.3 million (MEUR 43.2), declined 18% on the comparison period. The order intake was EUR 67 million (MEUR 34).
- The operating profit was EUR -1.3 million (MEUR +0.6). The profit before taxes was EUR -1.3 million (MEUR +0.8).
- Earnings per share were EUR -0.27 (EUR +0.16).
- Net sales for the second quarter were EUR 20.3 million and operating profit was EUR 0.6 million positive. The order intake was EUR 51 million. The order book at the end of the reporting period amounted to EUR 59 million.
- The outlook for financial performance remains unchanged. Raute’s net sales are expected to grow in 2014 and operating profit to improve from 2013.


TAPANI KIISKI, PRESIDENT AND CEO: STRONG ORDER BOOK, PROFITS WILL BE MADE IN THE SECOND HALF OF THE YEAR

In the second quarter of 2014, we received orders for two larger projects that had been in the pipeline for some time. After successfully gaining these transactions, we have reason to be satisfied with our order intake. Our order book also reached a good level.

Despite the highly publicized weak state of the European economy, Europe clearly remains our most important and largest market this year. The Russian market, traditionally very important for Raute, is still shrouded in uncertainty, due to its weak economic development and to the tense situation caused by the crisis in Ukraine. Projects that have been in the planning phase are still under negotiation in various market areas, and I am confident that our order book will develop favorably even in the latter part of the year. I do not, however, believe that the recent market development is an indication of a real change in the market situation. It’s really about projects that have been in planning for a long time entering the realization phase. It is also worth noting the low number of single, mid-sized, complete machine line projects. Brisk demand for technology services, on the other hand, indicates a high level of production among most of our customers.

In line with the scheduling of the order book, our second-quarter net sales grew from the very low level of the first quarter, and we achieved a positive result corresponding to the level of net sales in the second quarter. Thanks to the new orders we have received, our net sales will grow clearly in the second half of 2014, and, in keeping with our earlier estimates, our result will improve. In early June, the first Dragon peeling lines that we developed for the Chinese market were started up successfully. Although right now the lines have little bearing on our net sales, they have opened the door to future opportunities, and our expectations are high.

A significant part of our order book will be recognized in the latter half of the year, and successfully seeing it through will be a challenge for our organization in all areas of our operations. In the second half of 2012 we faced a similar workload, and based on our performance then, I am confident that our professional and committed personnel will succeed this time, too. We also do not see any significant technological risks in our new orders. Accordingly, we will achieve the growth in net sales and profit in line with our estimates.

SECOND QUARTER OF 2014

Order intake and order book

The order intake in the second quarter, EUR 51 million (MEUR 24), was at a good level. Technology services accounted for EUR 15 million (MEUR 9) of the order intake.
 
The new orders included two projects aimed at boosting production capacity in Poland. More than EUR 8 million worth of equipment will be delivered for the first phase of a new softwood plywood mill being built beside the company Paged’s plywood mill in Morag, Poland. An order worth roughly EUR 23 million for machinery and equipment required for producing laminated veneer lumber (LVL) will be delivered to Steico’s future LVL mill in Czarna Woda, Poland.

Other major new orders included 18 veneer analyzers based on machine vision and moisture analysis technology for UPM Kymmene Wood. It is the largest single order ever received by Raute’s Mecano unit in Kajaani, Finland.

The order book grew during the second quarter by EUR 31 million and was more than double the level of the comparison period, amounting to EUR 59 million at the end of the period (MEUR 40).

Net sales

Second-quarter net sales amounted to EUR 20.3 million (MEUR 19.8).

Technology services accounted for 44 percent of the Group’s total net sales (42%).

Result and profitability

Operating profit for the second quarter was EUR 0.6 million positive (MEUR 0.3 negative) and accounted for +3 percent (-1%) of net sales. The profit was EUR 0.5 million positive (MEUR 0.2 negative). Earnings per share were EUR +0.12 (EUR -0.05).

The Group’s profitability reflects the level of net sales.


RAUTE CORPORATION – INTERIM REPORT JANUARY 1 – JUNE 30, 2014

BUSINESS ENVIRONMENT

Market situation in customer industries

Raute’s customers in the veneer, plywood and LVL (Laminated Veneer Lumber) industries are engaged in the manufacture of wood products used in investment commodities and are thus highly affected by fluctuations in construction, housing-related consumption, international trade, and transportation.

The situation in the global economy and the financial markets in the first half of 2014 has not changed considerably with respect to Raute or Raute’s customer base. The uncertainty and tension persisted. In North America, the upswing in the construction market has continued, as it has in some parts of Europe. Russia’s economic situation remained weak, which has been reflected in, for example, low investment volumes and the weakening ruble – even before the crisis in Ukraine. The uncertainty caused by the crisis in Ukraine has weakened the situation further.

Despite the unsettled market situation, the production volumes and capacity utilization rates of Raute’s customers have mainly been at a good level, and their operations have been profitable. As a result of the above-mentioned uncertainty, however, the order books are often short, which means the situation is not conducive to realizing significant investments. The significant orders received by Raute in the second quarter are the result of long-term groundwork.

Demand for wood products technology and technology services

A few large projects in Raute’s customer base that had been in the planning phases were initiated in the second quarter. Where Russia is concerned, the concrete reason for some projects being delayed is the uncertainty arising from the situation in Ukraine. A number of smaller projects involving single production lines and modernizations have also been postponed. It is difficult to forecast when demand in the Russian market will recover so as to generate concrete orders. In other market areas, plans are being made to realize projects as usual.

Demand for maintenance and spare parts services continued at a good level. This bears testimony to the fact that the utilization rates of Raute’s customers’ production facilities remained, for the most part, good.

ORDER INTAKE AND ORDER BOOK

Raute serves the wood products industry with a full-service concept based on service that encompasses the entire life cycle of the delivered equipment. Raute’s business consists of project deliveries and technology services. Project deliveries comprise complete production machinery for new mills, production lines and individual machines and equipment. Additionally, Raute’s full-service concept includes comprehensive technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations, as well as consulting, training and reconditioned machinery.

During the reporting period, order intake, EUR 67 million (MEUR 34), was nearly double that of the comparison period. The second quarter accounted for EUR 51 million of the order intake.

Of the new orders, 69 percent came from Europe (28%), 18 percent from Russia (28%), 8 percent from North America (26%), 3 percent from South America (13%) and 2 percent from Asia-Pacific (5%). The strong fluctuations in the distribution of new orders between the various market areas are typical for project-focused business.

Among the new orders were two projects aimed at boosting production capacity in Poland. More than EUR 8 million worth of equipment will be delivered for a new softwood plywood mill being built beside the company Paged’s plywood mill in Morag, Poland. An order worth roughly EUR 23 million for machinery and equipment required for producing laminated veneer lumber (LVL) will be delivered to the German company Steico’s future LVL mill in Czarna Woda, Poland.

Other major new orders included 18 veneer analyzers based on machine vision and moisture analysis technology for UPM Kymmene Wood. It is the largest single order ever received by Raute’s Mecano unit in Kajaani, Finland.

Order intake in technology services amounted to EUR 21 million (MEUR 18), an increase of 17 percent on the comparison period. The growth resulted primarily from modernization orders.

The order book grew during the reporting period by EUR 31 million, amounting to EUR 59 million at the end of the period (MEUR 40).

COMPETITIVE POSITION

Raute’s competitive position has remained good. Raute’s solutions help customers in securing their delivery and service capabilities throughout the life cycle of the equipment or service offered by Raute. In such investments, the supplier’s overall expertise and extensive and diverse technology offering play a key role. The competitive edge provided by Raute is also a major draw when customers select their cooperation partners. Raute’s strong financial position and long-term dedication to serving selected customer industries also enhance its credibility and improve its competitive position as a company that carries out long-term investment projects.

NET SALES

Net sales for the reporting period totaled EUR 35.3 million (MEUR 43.2), down 18 percent on the comparison period. The decline resulted from the low order intake at the end of 2013 and at the start of the reporting period, and from the scheduling of the order book.

Of the total net sales for the reporting period, Europe accounted for 43 percent (47%), South America for 20 percent (24%), Russia for 17 percent (15%), North America for 17 percent (10%), and Asia-Pacific for 3 percent (5%).

Technology services accounted for 45 percent (33%) and EUR 16.1 million (MEUR 14.4) of the Group’s total net sales during the period. Technology services recorded net sales growth of 12 percent on the comparison period, mainly due to modernizations.

RESULT AND PROFITABILITY

Operating profit for the reporting period was EUR 1.3 million negative (MEUR 0.6 positive) and accounted for -4 percent of net sales (1%). The negative operating profit was due to low net sales in the first quarter.

The profit before tax for the reporting period was EUR 1.3 million negative (MEUR 0.8 positive). The profit for the reporting period was EUR 1.1 million negative (MEUR 0.7 positive). Earnings per share (undiluted) were EUR -0.27 (EUR +0.16).

CASH FLOW AND BALANCE SHEET

The Group’s financial position remained good. At the end of the reporting period, gearing was -39 percent (-49%) and the equity ratio 57 percent (53%). Fluctuations in balance sheet working capital items and the key figures based on them are due to differences in the timing of customer payments and the cost accumulation from project deliveries, which is typical of the project business.

The Group’s cash and cash equivalents amounted to EUR 12.4 million (MEUR 19.8) at the end of the reporting period. Operating cash flow was EUR 4.1 million positive (MEUR 6.2 positive). Cash flow from investment activities totaled EUR 0.7 million negative (MEUR 1.2 negative). Cash flow from financing activities was EUR 3.6 million negative (MEUR 4.7 negative), including dividend payments and distribution of funds from non-restricted equity of EUR 2.0 million and debt repayments of EUR 1.6 million.

Interest-bearing liabilities amounted to EUR 4.3 million (MEUR 8.6) at the end of the reporting period.

The parent company Raute Corporation has a EUR 10 million commercial paper program, which allows the company to issue commercial papers maturing in less than one year.

The parent company Raute Corporation is prepared for future working capital needs and has long-term credit facility agreements with three Nordic banks totaling EUR 23.0 million. The main covenants for the credit facility are an equity ratio of >30% and gearing of <100%. Of the credit facility, EUR 17 million remained unused at the end of the reporting period.

EVENTS DURING THE REPORTING PERIOD

Raute Corporation published stock exchange releases on the following events:

February 12, 2014 Long-term share-based incentive plan for Raute’s upper management for the years 2014–2018
February 25, 2014 Share subscription with Raute Corporation’s 2010 A stock options
March 31, 2014 Decisions by Raute’s Annual General Meeting 2014
June 6, 2014 Raute received an order valued at more than EUR 8 million from Poland
June 26, 2014 Raute received an order valued at EUR 23 million from engineered wood products company Steico.

RESEARCH AND DEVELOPMENT COSTS AND CAPITAL EXPENDITURE

Raute’s goal is to be the leading technology supplier in its field, and to invest strongly in continuous research and development, particularly in plywood and LVL manufacturing technology and the supporting by-product handling, automation and instrumentation applications, especially machine vision.

Research and development costs in the reporting period totaled EUR 0.8 million (MEUR 1.4), representing 2.2 percent of net sales (3.1%).

Capital expenditure during the period totaled EUR 0.8 million (MEUR 1.8) and accounted for 2.3 percent (4.1%) of net sales.

PERSONNEL

At the end of the reporting period, the Group’s personnel numbered 544 (533). Group companies outside Finland accounted for 28 percent (26%) of employees.

Converted to full-time employees (“effective headcount”), the average number of employees was 505 (503) during the reporting period.

The temporary lay-offs that started at the end of 2013 at the company’s Nastola and Jyväskylä units for a maximum of 90 days continued into June.

In a business transaction carried out at the end of March, Raute Corporation sold the Jyväskylä unit’s engineering operations to Insinööritoimisto Comatec Oy. The eight engineers who worked in the unit transferred to the employ of Comatec as senior employees as of April 1, 2014. The business transaction is in line with Raute’s strategy and reinforces its ability to adjust to the markets’ rapid and changing need for resources.

SHARES

The number of Raute Corporation’s shares at the end of the reporting period totaled 4,006,828, of which 991,161 were series K shares (ordinary share, 20 votes/share) and 3,015,667 series A shares (1 vote/share). The shares have a nominal value of two euros. Series K and A shares confer equal rights to dividends and company assets.

Series K shares can be converted to series A shares under the terms set out in section 3 of the Articles of Association. If an ordinary share is transferred to a new owner who has not previously held series K shares, the new owner must notify the Board of Directors of this in writing and without delay. Other holders of series K shares have the right to redeem the share under the terms specified in Article 4 of the Articles of Association.

Raute Corporation’s series A shares are listed on NASDAQ OMX Helsinki Ltd. The trading code is RUTAV. Raute Corporation has signed a market making agreement with Nordea Bank Finland Plc in compliance with the Liquidity Providing (LP) requirements issued by NASDAQ OMX Helsinki Ltd.

The company’s market capitalization at the end of the reporting period was EUR 32.5 million (MEUR 35.0), with series K shares valued at the closing price of series A shares on June 30, 2014, that is EUR 8.10 (EUR 8.74).

STOCK OPTION SCHEME 2010

At the end of the reporting period, the Group’s key personnel held altogether 77,930 of the company’s series 2010 A stock options, 80,000 series B stock options and 75,000 series C stock options. The subscription period for series A stock options began on March 1, 2013 and for series B stock options on March 1, 2014. On February 4, 2014, a total of 2,070 new series A shares were subscribed for under the series A stock option rights. More detailed information concerning the stock option system is available on the company’s website.

SHAREHOLDERS

The number of shareholders totaled 1,915 at the beginning of the year and 1,963 at the end of the reporting period. Series K shares were held by 47 private individuals (49) at the end of the reporting period. Nominee-registered shares accounted for 3.2 percent (3.3%) of shares. No flagging notifications were given to the company during the reporting period.

The Board of Directors, the President and CEO as well as the Executive Board held altogether 234,929 company shares, equaling 5.9 percent (5.8%) of the company shares and 11.2 percent (11.2%) of the votes at the end of the reporting period.

CORPORATE GOVERNANCE

Raute Corporation complies with the Finnish Corporate Governance Code 2010 for listed companies issued by the Securities Market Association on June 15, 2010.

Raute deviates from the Code’s recommendation 22 on appointing members to the Appointments Committee in that one member to the Committee is elected from outside the Board of Directors, as per the company’s Administrative Instructions, from among the representatives of major shareholders who have significant voting rights. The Board views this exception as justified, taking into consideration the company’s ownership structure and the possibility to consider the expectations of major shareholders as early as in the preparation phase of selecting members of the Board of Directors. 

ANNUAL GENERAL MEETING 2014

Raute Corporation’s Annual General Meeting was held on March 31, 2014. A stock exchange release on the decisions of the Annual General Meeting was published on March 31, 2014.

DISTRIBUTION OF PROFITS FOR THE 2013 FINANCIAL YEAR

The Annual General Meeting held on March 31, 2014 decided to pay a dividend of EUR 0.20 per share for the financial year 2013. The total amount of dividends is EUR 0.8 million, with series A shares accounting for EUR 603,133.40 (EUR 1,506,798.50) and series K shares for EUR 198,232.20 (EUR 495,580.50). The dividend payment date was April 10, 2014.

The Annual General Meeting on March 31, 2014 resolved, on the basis of the balance sheet adopted in respect of the financial year ended on 31 December 2013, on the repayment of assets from the invested non-restricted equity reserve in the amount of EUR 0.30 per share, i.e. a total of EUR 1,202,048.40 and the remainder, EUR 5,296,293.53, to be retained in equity. The date of repayment of equity was April 10, 2014.

BOARD OF DIRECTORS AND BOARD COMMITTEES

At the AGM on March 31, 2014 Mr. Erkki Pehu-Lehtonen was elected Chairman of the Board, Mr. Mika Mustakallio Vice-Chair, and Mr. Joni Bask, Mr. Risto Hautamäki, Ms. Päivi Leiwo-Svensk, and Mr. Pekka Suominen were elected Board members. The Board of Directors’ term of office will continue until the 2015 Annual General Meeting.

Based on the evaluation of independence, Chairman Mr. Erkki Pehu-Lehtonen and members Mr. Joni Bask, Mr. Risto Hautamäki, Ms. Päivi Leiwo-Svensk, Mr. Mika Mustakallio, and Mr. Pekka Suominen are independent of the company. The Chairman of the Board (Mr. Erkki Pehu-Lehtonen) and two Board members (Ms. Päivi Leiwo-Svensk and Mr. Risto Hautamäki) are independent of major shareholders.

Raute Corporation’s Board of Directors has an Appointments Committee and a Working Committee. The Appointments Committee is chaired by Mr. Erkki Pehu-Lehtonen and its members are Mr. Mika Mustakallio and Mr. Ville Korhonen, who was elected by the major shareholders from amongst their number. The Working Committee is chaired by Mr. Erkki Pehu-Lehtonen and its members are Mr. Mika Mustakallio and Mr. Risto Hautamäki. The Audit Committee’s tasks are handled by the Board of Directors.

AUDITOR

At the Annual General Meeting on March 31, 2014, the authorized public accounting company PricewaterhouseCoopers was chosen as auditor, with Authorized Public Accountant Janne Rajalahti as the principal auditor.

BUSINESS RISKS

Risks in the near term are driven by the global economic situation and the uncertainty concerning the development of the financial markets. During the reporting period, there were no essential changes in the business risks described in the 2013 Board of Directors’ Report and Financial Statements.

The most significant risks for Raute in the near term are related to the development of net sales and profitability. The heavy workload at the end of the year in all of Raute’s manufacturing units as a result of the scheduling of the order book will increase cost, scheduling and quality risks. The continuing crisis in Ukraine has contributed to the uncertainty surrounding the realization of new investments in Russia in the near future.

OUTLOOK FOR 2014

Raute’s business operations are characterized by the sensitivity of investment commodity demand to cyclical fluctuations in the global economy and the financial markets.

No changes have occurred in Raute’s profit outlook for the whole of 2014. Based on the order book and ongoing negotiations, Raute’s net sales are expected to grow in 2014 and operating profit to improve from 2013.


TABLES SECTION OF THE INTERIM REPORT

The figures for the financial year 2013 presented in the tables section of the interim report have been audited.
The presented interim financial report figures have not been audited.
 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 1.4.–30.6. 1.4.–30.6. 1.1.–30.6. 1.1.–30.6. 1.1.–31.12.
(EUR 1 000) Note 2014 2013 2014 2013 2013
             
NET SALES 3,4,5 20 329 19 766 35 349 43 152 83 274
             
Change in inventories of finished goods and work in progress   263 -610 331 -246 -954
             
Other operating income   7 15 33 35 295
             
Materials and services   -10 154 -8 906 -17 350 -21 885 -40 711
Employee benefits expense 13 -7 000 -7 190 -14 164 -14 061 -27 417
Depreciation and amortization   -476 -619 -940 -1 098 -2 174
Other operating expenses   -2 338 -2 740 -4 547 -5 272 -10 485
Total operative expenses     -19 967 -19 456 -37 001 -42 318 -80 787
             
OPERATING PROFIT (LOSS)   632 -286 -1 288 623 1 828
% of net sales   3 -1 -4 1 2
             
Financial income   65 72 269 472 735
Financial expenses   -58 -75 -270 -299 -974
             
PROFIT (LOSS) BEFORE TAX   639 -289 -1 289 796 1 589
% of net sales   3 -1 -4 2 2
             
Income taxes   -139 96 206 -150 -394
             
PROFIT (LOSS) FOR THE PERIOD   500 -193 -1 083 646 1 196
% of net sales   2 -1 -3 1 1
             
Other comprehensive income items:          
Items that will not be reclassified to profit or loss        
Remeasurement of defined benefit obligations 2 - 2 - 84
             
Items that may be subsequently reclassified to profit or loss            
Exchange differences on translating foreign operations -10 19 -7 13 -83
Comprehensive income items for the period, net of tax -8 19 -5 13 1
             
COMPREHENSIVE PROFIT (LOSS) FOR THE PERIOD 492 -174 -1 088 659 1 196
             
Profit (loss) for the period attributable to          
Equity holders of the Parent company   500 -193 -1 083 646 1 196
             
Comprehensive profit (loss) for the period attributable to        
Equity holders of the Parent company   492 -174 -1 088 659 1 196
             
Earnings per share for profit (loss) attributable          
to Equity holders of the Parent company, EUR          
Undiluted earnings per share   0,12 -0,05 -0,27 0,16 0,30
Diluted earnings per share   0,12 -0,05 -0,27 0,16 0,30
             
Shares, 1 000 pcs            
Adjusted average number of shares   4 007 4 005 4 007 4 005 4 005
Adjusted average number of shares diluted   4 008 4 013 4 008 4 013 4 013

  

           
CONSOLIDATED BALANCE SHEET     30.6. 30.6. 31.12.
(EUR 1 000) Note   2014 2013 2013
ASSETS          
Non-current assets          
Intangible assets 8   3 571 3 558 3 574
Property, plant and equipment 8   8 253 8 147 8 396
Other financial assets     500 789 500
Deferred tax assets     42 133 96
Total non-current assets     12 366 12 628 12 565
           
Current assets          
Inventories     5 483 5 628 5 047
Accounts receivables and other receivables 5   14 879 15 778 18 329
Income tax receivable     796 20 183
Cash and cash equivalents     12 423 19 839 12 658
Total current assets     33 581 41 265 36 218
           
TOTAL ASSETS     45 947 53 893 48 783
           
EQUITY AND LIABILITIES          
Equity attributable to Equity holders of the Parent company          
Share capital     8 014 8 010 8 010
Fair value reserve and other reserves     5 931 6 947 7 061
Exchange differences     12 116 20
Retained earnings     7 723 7 164 7 327
Profit (loss) for the period     -1 083 646 1 196
Share of shareholders' equity that belongs to the owners of the Parent company     20 596 22 883 23 613
Total equity     20 596 22 883 23 613
           
Non-current liabilities          
Non-current provisions     311 64 460
Deferred tax liability     114 304 423
Non-current interest-bearing liabilities 9   1 875 4 139 2 500
Pension obligations     2 88 4
Total non-current liabilities     2 302 4 595 3 387
           
Current liabilities          
Current provisions     728 979 775
Current interest-bearing liabilities 9   2 447 4 497 3 481
Current advance payments received 5   9 580 10 837 7 099
Income tax liability     7 82 3
Trade payables and other liabilities     10 288 10 020 10 425
Total current liabilities     23 049 26 416 21 783
           
Total liabilities     25 351 31 010 25 170
           
TOTAL EQUITY AND LIABILITIES     45 947 53 893 48 783
           
           
CONSOLIDATED STATEMENT OF CASH FLOWS     1.1.–30.6. 1.1.–30.6. 1.1.–31.12.
(EUR 1 000)     2014 2013 2013
           
CASH FLOW FROM OPERATING ACTIVITIES          
Proceeds from customer     35 998 45 277 76 836
Other operating income     33 35 295
Payments to suppliers and employees     -31 232 -39 312 -73 187
Cash flow before financial items and taxes     4 799 6 000 3 944
Interest paid from operating activities     -129 -209 -364
Dividends received from operating activities     100 180 180
Interests received from operating activities     2 102 122
Other financing items from operating activities     -50 105 153
Income taxes paid from operating activities     -624 2 -329
NET CASH FLOW FROM OPERATING ACTIVITIES (A)   4 098 6 181 3 704
           
CASH FLOW FROM INVESTING ACTIVITIES          
Purchase of property, plant and equipment and intangible assets -729 -1 194 -3 226
Proceeds from sale of property, plant and equipment and intangible assets 31 36 53
Purchase of investments     - - -3
NET CASH FLOW FROM INVESTING ACTIVITIES (B)   -697 -1 157 -3 176
           
CASH FLOW FROM FINANCING ACTIVITIES          
Proceeds from issue of share capital     14 - -
Repayments of current borrowings     - -1 100 -2 100
Repayments of non-current borrowings     -1 625 -1 625 -3 250
Dividends paid and repayment of equity     -2 003 -2 002 -2 002
NET CASH FLOW FROM FINANCING ACTIVITIES (C)   -3 615 -4 727 -7 352
           
NET CHANGE IN CASH AND CASH EQUIVALENTS (A+B+C) -214 296 -6 825
increase (+)/decrease (-)          
           
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD* 12 658 19 548 19 548
NET CHANGE IN CASH AND CASH EQUIVALENTS   -214 296 -6 825
EFFECTS OF EXCHANGE RATE CHANGES ON CASH   -21 -5 -66
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD* 12 423 19 839 12 658
           
CASH AND CASH EQUIVALENTS IN THE BALANCE        
SHEET AT THE END OF THE PERIOD*          
Cash and cash equivalents     12 423 19 839 12 658
TOTAL     12 423 19 839 12 658
           
*Cash and cash equivalents comprise cash and bank receivables, which will be due within the following three months' period.
           
           
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY      
  Share Invested non-restricted Other Exchange Retained
(EUR 1 000) capital equity reserve reserves differences earnings
EQUITY at Jan. 1, 2014 8 010 6 498 563 19 8 523
Comprehensive profit (loss) for the period          
Profit (loss) for the period - - - - -1 083
Other comprehensive income items:          
Exchange differences on translating foreign operations - - - -7 -
Total comprehensive profit (loss) for the period 0 0 0 -7 -1 083
Transactions with owners          
Share options excercised 4 9      
Equity-settled share-based          
transactions - - 63 - -
Dividends and repayment of equity - -1 202 - - -801
Total transactions with owners 4 -1 193 63 0 -801
EQUITY at June 30, 2014 8 014 5 305 626 12 6 640
           
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (CONTINUE)    
  To the owners of      
(EUR 1 000) the Parent company     TOTAL
EQUITY at Jan. 1, 2014 23 613       23 613
Comprehensive profit (loss) for the period          
Profit (loss) for the period -1 083       -1 083
Other comprehensive income items:          
Exchange differences on translating foreign operations -7       -7
Total comprehensive profit (loss) for the period -1 090       -1 090
Transactions with owners          
Share options excercised 14       14
Equity-settled share-based          
transactions 63       63
Dividends and repayment of equity -2 003       -2 003
Total transactions with owners -1 927       -1 927
EQUITY at June 30, 2014 20 596       20 596
           
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY      
  Share Invested non-restricted Other Exchange Retained
(EUR 1 000) capital equity reserve reserves differences earnings
EQUITY at Jan. 1, 2013 8 010 6 498 364 103 9 166
Comprehensive profit (loss) for the period          
Profit (loss) for the period - - - - 646
Other comprehensive income items:          
Exchange differences on translating foreign operations - - - 13 -
Total comprehensive profit (loss) for the period 0 0 0 13 646
Transactions with owners          
Equity-settled share-based          
transactions - - 85 - -
Dividends and repayment of equity - - - - -2 002
Total transactions with owners 0 0 85 0 -2 002
EQUITY at June 30, 2013 8 010 6 498 449 116 7 809
           
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (CONTINUE)    
  To the owners of      
(EUR 1 000) the Parent company     TOTAL
EQUITY at Jan. 1, 2013 24 141       24 141
Comprehensive profit (loss) for the period          
Profit (loss) for the period 646       646
Other comprehensive income items:          
Exchange differences on translating foreign operations 13       13
Total comprehensive profit (loss) for the period 659       659
Transactions with owners          
Equity-settled share-based          
transactions 85       85
Dividends and repayment of equity -2 002       -2 002
Total transactions with owners -1 917       -1 917
EQUITY at June 30, 2013 22 883       22 883

  

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. General information

Raute Group is a globally operating technology and service company. Raute's customers are companies operating in the wood products industry that manufacture veneer, plywood and LVL. Raute's technology offering covers machinery and equipment for the entire production process. Raute's full-service concept is based on product life-cycle management. In addition to a broad range of machines and equipment, our solutions cover technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations. Raute's head office is located in Nastola, Finland. Its other production plants are in the Vancouver area in Canada, in the Shanghai area in China, and in Kajaani, Finland. The company's sales network has a global reach.

Raute 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 NASDAQ OMX Helsinki Ltd, under Industrials. Raute Corporation is domiciled in Lahti. The address of its registered office is Rautetie 2, FI-15550 Nastola, and its postal address is P.O. Box 69, FI-15551 Nastola.

Raute Corporation's consolidated financial statement information 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 July 29, 2014 reviewed the Interim financial report for January 1 - June 30, 2014, and approved it to be published in compliance with this release.

2. Accounting principles

Raute Corporation's Interim financial report for January 1 -  June 30, 2014 has been prepared in accordance with standard IAS 34 Interim Financial Reporting. The Interim financial report does not contain full notes and other information presented in the financial statements, and therefore the Interim financial report should be read in conjunction with the Financial statements published for 2013.

Raute Corporation's Interim financial report for January 1 - June 30, 2014 has been prepared in accordance with the International Financial Reporting Standards, IFRS, accepted for application in the EU. Preparations have complied with the IAS and IFRS standards, as well as SIC and IFRIC interpretations, effective on June 30, 2014. The notes to the Interim financial statements also comply with Finnish accounting legislation. The presented Interim financial report figures have not been audited.

The  Interim financial report has been prepared according to the same accounting principles as those applied in the Annual financial statement for 2013, with the exception of certain new or revised standards, interpretations and amendments to existing standards which the Group has applied as of January 1, 2014. The impact of the new and revised standards has been presented in the Annual financial statements for 2013. The adoption of these standards has not had an impact on the Interim financial report.

All of the figures presented in the Interim financial report are in thousand euro, unless otherwise stated. Due to the rounding of the figures in the financial statement tables, the sums of figures may deviate from the sum total presented in the table. Figures in parentheses refer to the corresponding figures in the comparison period.

The preparation of Interim financial report in conformity with IFRS standards requires management to make certain critical accounting estimates and to exercise its judgment in applying the Group's accounting policies. Because the forward-looking estimates and assumptions are based on management's best knowledge at the reporting date, they comprise risks and uncertainties. The actual results may differ from these estimates.

3. Segment information

Operational segment

Continuing operations of Raute Group belong to the wood products technology segment.

Due to Raute's business model, operational nature and administrative structure, the operational segment to be reported as wood products technology segment is comprised of the whole Group and the information on the segment is consistent with that of the Group. Segment reporting follows the principles of presentation of the consolidated financial statements.

 

  30.6.   30.6.   31.12.  
Wood products technology 2014   2013   2013  
Net sales 35 349   43 152   83 274  
Operating profit (loss) -1 288   623   1 828  
Assets 45 947   53 893   48 783  
Liabilities 25 351   31 010   25 170  
Capital expenditure 821   1 768   3 188  
             
Assets of the wood products technology 30.6.   30.6.   31.12.  
segment by geographical location 2014 % 2013 % 2013 %
Finland 39 313 86 47 787 89 40 492 83
China 2 599 6 2 401 4 2 926 6
North America 2 452 5 2 337 4 3 914 8
Russia 1 294 3 1 146 2 1 114 2
South America 165 0 166 0 198 0
Other 124 0 56 0 140 0
TOTAL 45 947 100 53 893 100 48 783 100
             
Capital expenditure of the wood products 30.6.   30.6.   31.12.  
technology segment by geographical location 2014 % 2013 % 2013 %
Finland 720 88 1 358 77 2 324 73
China 58 7 391 22 837 26
North America 35 4 13 1 15 0
Russia 3 0 2 0 3 0
South America 2 0 1 0 1 0
Other 3 0 4 0 8 0
TOTAL 821 100 1 768 100 3 188 100
             
4. Net sales            
The main part of the net sales is comprised of project deliveries related to wood products technology and modernizations in
technology services, which are treated as long-term projects. The rest of the net sales is comprised of technology services
provided to the wood products industry such as spare parts and maintenance services as well as services provided to the 
development of customers' business.            
             
Project deliveries and modernizations related to technology services include both product and service sales, making it impossible 
to give a reliable presentation of the breakdown of the Group's net sales into purely product and service sales.  
             
Large delivery projects can temporarily increase the shares of various customers of the Group’s net sales to more than ten 
percent. At the end of the period, the Group had two customers (2), whose customized share of the Group's net sales 
temporarily exceeded ten percent. The total share of these customers was 24 percent.      
             
  1.1.–30.6.   1.1.–30.6.   1.1.–31.12.  
Net sales by market area 2014 % 2013 % 2013 %
EMEA (Europe and Africa) 15 429 43 20 303 47 33 697 40
LAM (South America) 7 069 20 10 152 24 18 020 22
CIS (Russia) 5 929 17 6 433 15 16 291 19
NAM (North America) 5 914 17 4 230 10 11 432 14
APAC (Asia-Pacific) 1 009 3 2 035 5 3 834 5
TOTAL 35 349 100 43 152 100 83 274 100
             
Finland accounted for 7 percent (4 %) of net sales.          
             
      30.6. 30.6. 31.12.  
5. Long-term projects     2014 2013 2013  
Net sales            
Net sales by percentage of completion     25 390 35 284 66 214  
Other net sales     9 959 7 868 17 060  
TOTAL     35 349 43 152 83 274  
             
Project revenues entered as income from currently undelivered            
long-term projects recognized by percentage of completion      95 894 108 543 86 534  
             
Amount of long-term project revenues not yet entered as income (order book) 57 767 38 864 27 770  
             
Projects for which the value by percentage of completion exceeds        
advance payments invoiced             
- aggregate amount of costs incurred and recognized profits less recognized losses 53 440 74 463 65 872  
- advance payments received     46 133 65 336 53 619  
Gross amount due from customers     7 308 9 127 12 253  
             
Projects for which advance payments invoiced exceed the value by        
percentage of completion              
- aggregate amount of costs incurred and recognized profits less recognized losses 42 454 34 080 20 467  
- advance payments received     51 150 44 542 26 953  
Gross amount due to customers     8 696 10 462 6 486  
             
Specification of combined asset and liability items                      
Advance payments paid     145 213 101  
Advance payments received included in inventories in the balance sheet 145 213 101  
             
Advance payments in the balance sheet     9 580 10 837 7 099  
             
      30.6. 30.6. 31.12.  
6. Number of personnel, persons     2014 2013 2013  
Effective, on average     505 503 515  
In books, on average     525 511 522  
In books, at the end of the period     544 533 534  
- of which personnel working abroad     152 140 148  
             
      30.6. 30.6. 31.12.  
7. Research and development costs     2014 2013 2013  
Research and development costs for period     785 1 356 2 523  
Amortization of previously capitalized development costs   51 238 405  
Development costs recognized as an asset in the balance sheet -138 -388 -615  
Research and development costs entered as expense for the period 698 1 206 2 313  

  

           
8. Changes in Intangible assets and in Property,    30.6. 30.6. 31.12.
plant and equipment     2014 2013 2013
Intangible assets          
Carrying amount at the beginning of the period     13 372 14 019 14 019
Exchange rate differences     -12 7 -10
Additions     244 753 1 552
Reclassification between items     -117 17 -2 188
Carrying amount at the end of the period     13 486 14 795 13 372
           
Accumulated depreciation and amortization at the beginning of the period -9 799 -10 815 -10 815
Exchange rate differences     7 -4 7
Accumulated depreciation and amortization of disposals and reclassifications 117 - 1 791
Depreciation and amortization for the period     -240 -419 -782
Accumulated depreciation and amortization at the end of the period -9 915 -11 237 -9 799
           
Book value of Intangible assets, at the beginning of the period 3 574 3 204 3 204
Book value of Intangible assets, at the end of the period 3 571 3 558 3 574
           
Property, plant and equipment          
Carrying amount at the beginning of the period     42 670 41 673 41 673
Exchange rate differences     25 -372 -947
Additions     578 1 016 1 634
Disposals     -4 -29 -44
Reclassification between items     -8 -17 354
Carrying amount at the end of the period     43 260 42 271 42 670
           
Accumulated depreciation and amortization at the beginning of the period -34 274 -33 782 -33 782
Exchange rate differences     -40 338 857
Accumulated depreciation and amortization of disposals and reclassifications 8 - 44
Depreciation and amortization for the period     -701 -680 -1 392
Accumulated depreciation and amortization at the end of the period -35 007 -34 124 -34 274
           
Book value of Property, plant and equipment, at the beginning of the period 8 396 7 892 7 891
Book value of Property, plant and equipment, at the end of the period 8 253 8 147 8 396
           
      30.6. 30.6. 31.12.
9. Interest-bearing liabilities     2014 2013 2013
Non-current interest-bearing liabilities recognized at amortized cost 1 875 4 139 2 500
Current interest-bearing liabilities     2 447 4 497 3 481
TOTAL     4 322 8 636 5 981
           
Maturities of the interest-bearing financial liabilities at June 30, 2014    
Financial liability     Current Non-current Total
Loans from financial institutions     2 447 1 875 4 322
Total     2 447 1 875 4 322
           
      30.6. 30.6. 31.12.
10. Pledged assets and contingent liabilities     2014 2013 2013
On behalf of the Parent company          
Business mortgages     4 376 - 3 946
           
Loans from financial institutions     4 086 7 636 5 741
Business mortgages     4 125 6 700 5 750
           
Pension loans (TYEL)     - 1 000 -
Business mortgages     - 300 -
Credit insurance agreements     - 700 -
           
Mortgage agreements on behalf of subsidiaries          
Loans from financial institutions     236 247 240
Other obligations     1 263 - 64
Business mortgages     1 499 247 304
           
Commercial bank guarantees on behalf of the Parent company and subsidiaries     11 806 10 779 1 484
           
Other own obligations          
Rental liabilities maturing within one year     656 816 845
Rental liabilities maturing in one to five years     1 972 2 552 2 398
Rental liabilities maturing more than five years     90 318 185
Total     2 719 3 687 3 428
           
11. Related party transactions          
No loans are granted to the company's management. On June 30, 2014, the Parent Company Raute Corporation had
loan receivables from its subsidiary Raute Service LLC EUR 355 thousand (EUR 355 thousand) and Raute 
Shanghai Machinery Co., Ltd EUR 550 thousand.          
           
No pledges have been given or other commitments made on behalf of the company's management and shareholders.     
           
      30.6. 30.6. 31.12.
12. Derivatives     2014 2013 2013
           
Nominal values of forward contracts in foreign currency           
Economic hedging          
- Related to financing     - 1 408 1 311
- Related to the hedging of net sales     3 559 4 177 2 967
           
Fair values of forward contracts in foreign currency         
Economic hedging          
- Related to financing     - 5 -3
- Related to the hedging of net sales     24 -114 24
           
Interest rate and currency swap agreements        
- Nominal value     967 3 014 1 991
- Fair value     -36 -50 -42

  

13. Share-based payments

An expense of EUR 63 thousand (EUR 85 thousand) was recognized for the options to the income statement during the interim period. A total amount of 2 thousand series A shares were subscribed during the period. The share capital of Raute Corporation, as a result of the share subscription made with stock options, increased EUR 4 thousand.

14. Dividend distribution and repayment of equity

Raute Corporation's Annual General Meeting held on March 31, 2014, decided, according to the Board of Directors' proposal, to distribute a dividend of EUR 0,20 per share to be paid for series A and K shares, a total of EUR 801 thousand. The dividend payment date was April 10, 2014.

Raute Corporation's Annual General Meeting held on March 31, 2014, decided, according to the Board of Directors' proposal, to distribute a repayment of equity of EUR 0,30 per share to be paid for series A and K shares, a total of EUR 1 202 thousand. The payment date was April 10, 2014.

15. Financial assets and liabilities that are measured at fair value

At the end of the reporting period June, 2014, the fair value of the financial assets categorized at fair value on hierarchy level 3 was EUR 500 thousand. The methods of fair value determination correspond the valuation principles presented in the Annual financial statements for 2013. There were no transfers between the hierarchy levels 1 and 2 during the reporting period. 

16. Exchange rates used          
      1.1.–30.6. 1.1.–30.6. 1.1.–31.12.
Income statement, euros     2014 2013 2013
CNY (Chinese juan)     8,4517 8,1294 8,1655
RUB (Russian rouble)     48,0204 40,7641 42,3248
CAD (Canadian dollar)     1,5032 1,3345 1,3685
USD (US dollar)     1,3705 1,3135 1,3282
SGD (Singapore dollar)     1,7281 1,6331 1,6618
CLP (Chilean peso)     758,0075 628,7305 658,1306
           
      30.6. 30.6. 31.12.
Balance sheet, euros     2014 2013 2013
CNY (Chinese juan)     8,4698 8,0905 8,3248
RUB (Russian rouble)     46,3779 42,8450 45,3246
CAD (Canadian dollar)     1,4589 1,3714 1,4671
USD (US dollar)     1,3658 1,3080 1,3791
SGD (Singapore dollar)     1,7047 1,6545 1,7414
CLP (Chilean peso)     751,1761 663,3357 725,0943
           
      30.6. 30.6. 31.12.
FINANCIAL DEVELOPMENT     2014 2013 2013
Change in net sales, %     -18,1 15,2 -17,8
Exported portion of net sales, %     92,8 96,2 94,2
Return on investment (ROI), %     -8,2 6,2 7,3
Return on equity, ROE, %     -9,8 5,5 5,0
Interest-bearing net liabilities, EUR million     -8,1 -11,2 -6,7
Gearing, %     -39,3 -49,0 -28,3
Equity ratio, %     56,6 53,1 56,6
           
Gross capital expenditure, EUR million     0,8 1,8 3,2
% of net sales     2,3 4,1 3,8
           
Research and development costs, EUR million     0,8 1,4 2,5
% of net sales     2,2 3,1 3,0
           
Order book, EUR million     59 40 28
Order intake, EUR million     67 34 63
           
           
      30.6. 30.6. 31.12.
SHARE-RELATED DATA     2014 2013 2013
Earnings per share, (EPS), undiluted, EUR     -0,27 0,16 0,30
Earnings per share, (EPS), diluted, EUR     -0,27 0,16 0,30
Equity to share, EUR     5,14 5,71 5,89
Dividend per share, EUR     - - 0,20
Dividend per profit, %     - - 66,7
Effective dividend return, %     - - 2,90
Repayment of equity from invested non-restricted equity reserve, EUR - - 0,30
           
Development in share price (series A shares)        
Lowest share price for the period, EUR     6,90 8,33 6,88
Highest share price for the period, EUR     8,60 9,33 9,33
Average share price for the period, EUR     7,62 8,78 8,49
Share price at the end of the period, EUR     8,10 8,74 6,95
           
Market value of capital stock          
- Series K shares, EUR million*     8,0 8,7 6,9
- Series A shares, EUR million     24,4 26,3 20,9
Total, EUR million     32,5 35,0 27,8
*Series K shares valued at the value of series A shares.            
           
Trading of the company's shares (series A shares)        
Trading of shares, pcs     359 282 268 519 513 699
Trading of shares, EUR million     2,7 2,4 4,4
           
Number of shares          
- Series K shares, ordinary shares (20 votes, share)   991 161 991 161 991 161
- Series A shares (1 vote/share)     3 015 667 3 013 597 3 013 597
Total     4 006 828 4 004 758 4 004 758
           
Number of shares, weighted average, 1 000 pcs   4 007 4 005 4 005
Number of shares, diluted, 1 000 pcs     4 008 4 013 4 013
           
Number of shareholders     1 963 1 775 1 915

 

             
DEVELOPMENT OF Q 3 Q 4 Q 1 Q 2 Rolling Rolling
QUARTERLY RESULTS 2013 2013 2014 2014 1.7.2013 1.7.2012
         
(EUR 1 000)         30.6.2014 30.6.2013
             
NET SALES 15 610 24 512 15 020 20 329 75 471 106 952
             
Change in inventories of finished goods          
and work in progress -37 -672 69 263 -378 -437
             
Other operating income 102 158 25 7 293 1 352
             
Materials and services -7 304 -11 521 -7 197 -10 154 -36 175 -58 749
Employee benefits expense -5 969 -7 387 -7 164 -7 000 -27 520 -29 182
Depreciation and amortization -597 -479 -465 -476 -2 016 -2 071
Other operating expenses -2 115 -3 098 -2 209 -2 338 -9 760 -12 299
Total operating expenses -15 984 -22 486 -17 035 -19 967 -75 471 -102 300
             
OPERATING PROFIT (LOSS) -309 1 513 -1 920 632 -84 5 566
% of net sales -2 6 -13 3 0 5
             
Financial income 53 210 205 65 532 565
Financial expenses -161 -513 -213 -58 -944 -692
             
PROFIT (LOSS) BEFORE TAX -417 1 210 -1 928 639 -496 5 438
% of net sales -3 5 -13 3 -1 5
             
Income taxes 51 -294 345 -139 -37 -1 575
             
PROFIT (LOSS) FOR THE PERIOD -366 916 -1 583 500 -533 3 863
% of net sales -2 4 -11 2 -1 4
             
Attributable to            
Equity holders of the Parent company -366 916 -1 583 500 -533 3 863
             
Earnings per share, EUR            
Undiluted earnings per share -0,09 0,23 -0,40 0,12 -0,13 0,96
Diluted earnings per share -0,09 0,23 -0,40 0,12 -0,13 0,96
             
Shares, 1 000 pcs            
Adjusted average number of shares 4 005 4 005 4 005 4 007 4 007 4 005
Adjusted average number of shares            
diluted 4 010 4 013 4 008 4 008 4 008 4 013
             
  Q 3 Q 4 Q 1 Q 2 Rolling Rolling
  2013 2013 2014 2014 1.7.2013 1.7.2012
         
FINANCIAL DEVELOPMENT QUARTERLY         30.6.2014 30.6.2013
Order intake during the period, EUR million 7 22 16 51 96 74
Order book at the end of the period, EUR million 31 28 28 59 59 40
             
20 LARGEST SHAREHOLDERS AT JUNE 30, 2014   Total number % of total Total number % of voting
By number of shares Number of series K shares Number of series A shares of shares shares of votes rights
1. Sundholm, Göran - 624 398 624 398 15,6 624 398 2,7
2. Mandatum Life Unit-Linked - 181 900 181 900 4,5 181 900 0,8
3. Laakkonen Mikko - 119 919 119 919 3,0 119 919 0,5
4. Suominen, Pekka 48 000 62 429 110 429 2,8 1 022 429 4,5
5. Suominen, Tiina Sini-Maria 48 000 62 316 110 316 2,8 1 022 316 4,5
6. Siivonen, Osku Pekka 50 640 53 539 104 179 2,6 1 066 339 4,7
7. Kirmo, Kaisa Marketta 55 680 48 341 104 021 2,6 1 161 941 5,1
8. Mustakallio, Mika Tapani 57 580 29 270 86 850 2,2 1 180 870 5,2
9. Keskiaho, Kaija Leena 33 600 51 116 84 716 2,1 723 116 3,2
10. Särkijärvi, Anna Riitta 60 480 22 009 82 489 2,1 1 231 609 5,4
11. Relander, Harald - 80 000 80 000 2,0 80 000 0,4
12. Mustakallio, Kari Pauli 60 480 1 000 61 480 1,5 1 210 600 5,3
13. Mustakallio, Marja Helena 43 240 16 047 59 287 1,5 880 847 3,9
14. Särkijärvi, Timo 12 000 43 256 55 256 1,4 283 256 1,2
15. Särkijärvi-Martinez, Anu Riitta 12 000 43 256 55 256 1,4 283 256 1,2
16. Mustakallio, Ulla Sinikka 53 240 - 53 240 1,3 1 064 800 4,7
17. Suominen, Jukka Matias 24 960 27 964 52 924 1,3 527 164 2,3
18. Mustakallio, Kai Henrik kuolinpesä 47 420 4 594 52 014 1,3 952 994 4,2
19. Keskinäinen työeläkevakuutusyhtiö Varma - 51 950 51 950 1,3 51 950 0,2
20. Sjoitusrahasto Nordea Suomi Small Cap - 49 573 49 573 1,2 49 573 0,2
TOTAL 607 320 1 572 877 2 180 197 54,4 13 719 277 60,1
             
      Total number % of total Total number % of voting
By number of votes Number of series K shares Number of series A shares of shares shares of votes rights
1. Särkijärvi, Anna Riitta 60 480 22 009 82 489 2,1 1 231 609 5,4
2. Mustakallio, Kari Pauli 60 480 1 000 61 480 1,5 1 210 600 5,3
3. Mustakallio, Mika Tapani 57 580 29 270 86 850 2,2 1 180 870 5,2
4. Kirmo, Kaisa Marketta 55 680 48 341 104 021 2,6 1 161 941 5,1
5. Siivonen, Osku Pekka 50 640 53 539 104 179 2,6 1 066 339 4,7
6. Mustakallio, Ulla Sinikka 53 240 - 53 240 1,3 1 064 800 4,7
7. Suominen, Pekka 48 000 62 429 110 429 2,8 1 022 429 4,5
8. Suominen, Tiina Sini-Maria 48 000 62 316 110 316 2,8 1 022 316 4,5
9. Suominen, Jussi 48 000 - 48 000 1,2 960 000 4,2
10. Mustakallio, Kai Henrik kuolinpesä 47 420 4 594 52 014 1,3 952 994 4,2
11. Mustakallio, Marja Helena 43 240 16 047 59 287 1,5 880 847 3,9
12. Mustakallio, Risto Knut kuolinpesä 42 240 0 42 240 1,1 844 800 3,7
13. Keskiaho, Kaija Leena 33 600 51 116 84 716 2,1 723 116 3,2
14. Sundholm, Göran - 624 398 624 398 15,6 624 398 2,7
15. Keskiaho, Vesa Heikki 29 680 - 29 680 0,7 593 600 2,6
16. Keskiaho, Juha-Pekka 27 880 7 491 35 371 0,9 565 091 2,5
17. Kirmo, Lasse 27 645 9 621 37 266 0,9 562 521 2,5
18. Suominen, Jukka Matias 24 960 27 964 52 924 1,3 527 164 2,3
19. Keskiaho, Marjaana 24 780 21 500 46 280 1,2 517 100 2,3
20. Kultanen, Leea Annikka 22 405 8 031 30 436 0,8 456 131 2,0
TOTAL 805 950 1 049 666 1 855 616 46,3 17 168 666 75,2

  

MANAGEMENTS' AND PUBLIC INSIDERS' SHAREHOLDING AND NOMINEE-REGISTERED SHARES    
    Number of series K shares Number of series A shares Total number of shares % of total shares Total number of votes % of total voting rights
Management's and Public insiders' holding at June 30, 2014          
The Board of Directors, The Group's President and CEO and Executive Board   122 830 112 099 234 929 5,9 2 568 699 11,2
TOTAL   122 830 112 099 234 929 5,9 2 568 699 11,2
               
The figures include the holdings of their own, minor children and control entities.      
               
Nominee-registered shares at June 30, 2014   - 126 727 126 727 3,2 126 727 0,6

 

RAUTE CORPORATION
Board of Directors


PRESS CONFERENCE ON JULY 29, 2014 AT 2 P.M.:
A briefing will be organized for analysts, investors and the media on July 29, 2014 at 2 p.m. at Scandic Simonkenttä Hotel, Roba cabinet, Simonkatu 9, Helsinki. The interim report will be presented by Mr. Tapani Kiiski, President and CEO, and Ms. Arja Hakala, CFO.

NEXT INTERIM REPORT:
Raute Corporation’s interim report January 1–September 30, 2014 will be published on Wednesday, October 29, 2014.

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

DISTRIBUTION:
NASDAQ OMX Helsinki Ltd, main media, www.raute.com

RAUTE IN BRIEF:
Raute is a technology and service company that operates worldwide. Raute’s customers are companies operating in the wood products industry that manufacture veneer, plywood and LVL (Laminated Veneer Lumber). The technology offering covers machinery and equipment for the entire production process. As a supplier of mill-scale projects, Raute is a global market leader both in the plywood and LVL industries. Additionally, Raute’s full-service concept includes technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations. Raute’s head office is located in Nastola, Finland. Its other production plants are in the Vancouver area of Canada, in the Shanghai area of China, and in Kajaani, Finland. Raute’s net sales in 2013 were EUR 83.3 million. The Group’s headcount at the end of 2013 was 534.

More information about the company can be found at www.raute.com.