Outlook

On June 22, 2022, Raute Corporation’s Board of Directors issued a revised earnings guidance for 2022. The Board of Directors now expects Raute’s 2022 operating profit to stay significantly negative and below last year’s level. Raute’s operating profit for 2021 was -2.2 million euros.

As previously reported, Raute’s order book for 2022 included a significant amount from projects in Russia. Since the end of February Raute has not made any new agreements with Russian operators and the Russian business is gradually scaling down, in accordance with sanctions and local laws and regulations in both countries. 

Raute has analyzed the prerequisites for the execution of each project including the contractual commitments, sanctions, and constantly changing impacts on logistics, financing and payment transactions, and continues to adjust its order book to reflect the outcome. As a result of this, Raute will book provisions currently estimated at approximately 8-9 million euros in the second quarter reporting for write-offs related to either trade-sanctioned or otherwise cancelled projects and receivables. Additionally, the second quarter result will include approximately 1 million euro cost for business restructuring including severance.

Raute’s profitability during H1 2022 has been negatively impacted from scaling down the deliveries to Russia and related reorganizing of delivery projects. In addition poor availability and increased prices of components and logistics have negatively affected the result.

To mitigate the impacts of underlying negative drivers, Raute is strengthening its development program to improve competitiveness and profitability targeting margin improvement and cost efficiencies during 2022 and 2023. 

Market situation and demand for the business outside of Russia has been healthy and current order intake shows positive signs. Provided that these current market conditions remain largely as today, Raute expects that the situation stabilizes during H2 2022 and profitability will start improving.

Raute Corporation’s Board of Directors withdrew the 2022 financial guidance on March 2, 2022. In accordance with the above noted matters the Board of Directors now expects Raute’s 2022 operating profit to stay significantly negative and below last year’s level. Raute’s operating profit for 2021 was -2.2 million euros.

Raute Corporation’s Board of Directors withdrew its earnings guidance on March 2, 2022. Due to the uncertain situation, the Board of Directors will not present new guidance for 2022.

The sanctions and financial transaction restrictions resulting from Russia’s military actions in Ukraine are causing significant uncertainty in Raute’s business operations in Russia.

As reported earlier, Raute’s order book at the beginning of 2022 was EUR 158 million and the order intake for 2021 was EUR 203 million. Of the new orders received in 2021, 39% came from Russia.

Raute Corporation’s Board of Directors has decided to withdraw the 2022 financial guidance released on February 11, 2022. Due to the uncertain situation, the Board of Directors will not present new guidance for 2022 at the present time.

The earlier financial guidance, published in the financial statements release on February 11, 2022: “Raute’s net sales are expected to grow in 2022 and operating profit to improve from 2021.”

Due to the strong order book, active demand and further alleviated impacts of the coronavirus pandemic, Raute’s 2022 net sales are expected to grow and operating profit is expected to improve from 2021.

Due to the strong order book, active demand and further alleviated impacts of the coronavirus pandemic, Raute’s 2022 net sales are expected to grow and operating profit is expected to improve from 2021.