Raute's profit outlook for 2019 has weakened. Net sales are estimated to decline from the record-breaking year 2018. Operating profit is estimated to weaken from the previous, record-high also what becomes to operating profit, year, as the company says in the press release received by Lesprom Network.
Previously the company has estimated net sales and operating profit to remain at the level of the preceding year. In 2018, the Group's net sales were Euro 181 million and the operating profit was Euro 14.9 million.
Raute's weakened net sales and profit outlook is due to the delays in the schedules of some challenging project deliveries which are in implementation phase and costs related to them, and the postponement from previous estimates of capturing some big orders which are in the negotiation phase.
The potential need for adaptation measures will be estimated later in the summer along with the realization of the orders referred to above.
Several large projects encompassing single production lines and mill-scale deliveries that are in the planning and negotiation phase are pending. The delay in decision-making concerning large projects is expected to result from the schedule changes typical of project business, the increased uncertainty of economy and the situation in the financing market.
Raute is a technology and service company. Raute’s customers are companies operating in the wood products industry that manufacture veneer, plywood, LVL (Laminated Veneer Lumber) and sawn timber.
