From the CEO
NEW ORDERS NEEDED!
The order intake remained very low in the third quarter, which lowered our profit outlook for the whole of 2013. The net sales for the third quarter remained lower than we forecast already in the summer, and, consequently, our financial result was negative.
The tentatively positive signs in the macroeconomy are yet to materialize in our industry. Our customers' market environment is marked by duality. Utilization rates have remained reasonably high, but the order books are exceptionally short. In a single word, the situation could be described as uncertain. At Raute, the situation is materializing as a fairly normal, if not good, demand for services and small projects, with medium-sized and large projects, however, seeming to be unable to make it through to the decision-making and implementation phase. The total volume of new orders has remained very low during the first nine months of the year, despite the growth in technology services.
Our market position continues to be strong, but our order intake has not been sufficient to fuel steady or growing net sales. At the same time, a few of our larger projects in our order book have been moved forward. Our net sales have thus remained low due to the volume and scheduling of the order book. Our result is in line with our cost structure and with our expectations at such a low level of net sales.
We are also undergoing negotiations concerning a reasonable, if not a good, number of projects in several market areas, which has been the case throughout the year. Despite the fact that these projects are being moved further forward, I am confident that our order intake will take a turn for the better in the near future. The scheduling of our order book is such that the net sales and the operating profit for the rest of the year will depend on whether the new orders forecast for the end of the year are realized and on the amount of revenue generated by them for 2013.
October 30, 2013
President and CEO