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ABOUT RAUTE |
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FROM THE CEO |
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STOCK EXCHANGE RELEASES |
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KEY FIGURES |
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SHARE INFORMATION |
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CORPORATE GOVERNANCE |
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PUBLICATIONS |
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FINANCIAL CALENDAR |
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INVESTOR CONTACTS |
Still no concrete signs of better times
The world economy and Raute's market situation have continued to be extremely challenging. Demand for our customers' products and, as a result, production volumes have remained on a low level. The need for capacity-increasing investments is naturally nonexistent among our customers in these circumstances.
Many of our customers would, however, wish to invest in the enhancing of their
existing production capacity. Naturally such investments would have remarkably shorter payback times if the capacity utilization rates were at higher, more normal levels. In addition, the availability of financing and the guarantee requirements and other terms for financing in the emerging markets important to us make the carrying out of investments especially difficult. The production capacity utilization rates of several customers were so low that also fewer spare parts and less maintenance services were required than before.
It has been made clear on several occasions in the public arena, on the basis of many indicators, that the economy has already taken a turn for the better. The general improvement in the economic situation will, regrettably, only have adelayed stimulative effect on the demand for Raute's products and services. No concrete and reliable signs of a turn for the better can yet be observed for
Raute in the market situation.
The global economy will be restored to its growth path and the situation will
begin to look brighter also for Raute. This year, in addition to the immediate
adaptation measures due to the recession, we have reorganized our operations. Our main goal is to improve our customer service and the overall efficiency of our operations. Through these renewals, I believe that we will be able to increase our business within our traditional customer base by a mix of products and services which differs from that up till now. Simultaneously our capability to rise to the challenge presented by new emerging markets will be improved. We will need to implement these changes under severe cost-cutting pressure. Our challenge is to simultaneously carry out the cutbacks resulting from the difficult economic situation and the development projects looking towards the future.
October 27, 2009
Tapani Kiiski
President and CEO
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