From the CEO
October 31, 2018
RECORD-HIGH NET SALES AND OPERATING PROFIT IN THIRD QUARTER
Our performance in the third quarter was excellent and even surpassed our expectations. Thanks to the dedication of our personnel and solid collaboration with our partners, we were able to achieve record-high net sales. We also executed our deliveries on time and within the planned budget. We have also managed to keep growing cost pressures in check and also to resolve issues related to raw material and component availability. Just as important in terms of improving the near-term earnings outlook was that we were able to make room for new orders with competitive delivery times in our production plan.
Our order intake, at EUR 42 million in the third quarter, was also at a good level, bearing in mind that it did not include any major individual orders. Major mill projects that are in the negotiation phase are moving forward at a slow pace for various reasons. Despite euro growth, the share of technology services of new orders declined. In this good market situation, our customers continue to invest in new equipment rather than modernizing their old equipment.
Demand for our technology and services alike remains good. The focus of demand remains in the developed markets but is very slightly shifting from Europe to North America and Russia. Increased activity is also being seen in a few emerging market customer segments. Even after the investments initiated by many of Raute's traditional customers, the focus of demand has also shifted to customers that are new to Raute.
Even during this period of heavy workload and brisk demand, we continue to invest in developing new technologies, our service business and our presence and offering on the emerging markets, and consequently open new business opportunities.
Our realized year-to-date net sales and operating profit, strong order book and continued active demand reinforce our outlook for the whole year and already provide good insight into next year. We are well on the way to reaching our goals for this year. In line with our press release, Raute's net sales will increase and operating profit will improve in 2018 compared to the previous year.
President and CEO