Profit warning: Raute Corporation's operating profit for 2021 will remain at the level of 2020 due to the new agenda decision issued by IFRIC on IT cloud services
RAUTE CORPORATION INSIDE INFORMATION JANUARY 25, 2022 at 9.00 a.m.
PROFIT WARNING: RAUTE CORPORATION’S OPERATING PROFIT FOR 2021 WILL REMAIN AT THE LEVEL OF 2020 DUE TO THE NEW AGENDA DECISION ISSUED BY IFRIC ON IT CLOUD SERVICES
According to preliminary, unaudited information, Raute’s operating profit for 2021 will be weaker than previously estimated.
According to the preliminary, unaudited information Raute Group’s net sales for 2021 were EUR 142 million (2020: 115 M€). Operating profit will be EUR 2.2 million negative (2020: 1.9 M€ negative). Previously the company has estimated net sales for 2021 to increase and operating profit to improve compared to 2020.
IFRS Interpretations Committee, IFRIC gave in April 2021 an agenda decision on bookkeeping practices of configuration and tailoring costs of cloud-based IT systems (IAS 38§, Intangible Assets). Raute has analyzed this decision’s impacts on the ongoing process and IT system renewal project. This IT system is cloud based. As a conclusion of this analysis Raute will book as expenses 2.9 M€ of costs that were earlier capitalized. 2.0 M€ of that concerns 2021 and 0.9 M€ retroactively to year 2020.
Further, in early December, Raute was forced to halt the operations of its main production plant due to a Covid-19 cluster. Due to an ongoing industrial action, it was not possible to use overtime to compensate for the resulting loss of production. The industrial action impeded production during the busiest time of year in other ways, too. In Q4 the delays caused by problems in the availability of raw materials and components reduced net sales, and increased prices weakened the result.
Raute will publish its financial statements release for 2021, as planned, on Friday February 11, 2022. The company will give then more detailed information on its net sales and operating profit for 2021 and outlook for 2022.
President and CEO
Mr. Tapani Kiiski, President and CEO, mobile phone +358 400 814 148
Ms. Tarja Järvinen, Executive Vice President, CFO, mobile phone +358 40 658 3562
Nasdaq 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, LVL (Laminated Veneer Lumber) and sawn timber. Its technology offering covers the entire production process for veneer, plywood and LVL and special measurement equipment for sawn timber. 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 the Nastola area of Lahti, Finland. The company’s other production plants are located in Kajaani, Finland, the Vancouver area of Canada, the Shanghai area of China and in Pullman, Washington, USA. More information about the company can be found at www.raute.com.