From the CEO
NUANCES OF THE PROJECT BUSINESS IN THE SAME QUARTER
For Raute, the early part of the year offered both positive and negative aspects. The year began with significant growth in our net sales compared to the corresponding period of last year. We remained significantly below the record figures achieved in the fourth quarter and returned to the normal level corresponding with our order book. Taking this level of net sales and order book into account, our result was fairly good and met our expectations.
The volume of new orders remained low in the first quarter. The order intake consisted mainly of technology services orders as well as additional sales related to project deliveries already included in the order book. The order intake in technology services increased considerably, by 60 percent, compared to the first quarter of last year. The volume of spare parts orders is indicative of the good, perhaps even improved, capacity utilization rates of our customers' production. The increase in modernizations, on the other hand, shows that our customers see a need to enhance their productivity and competitiveness as well as to increase capacity by removing production bottlenecks.
The enduring active demand for technology services anticipates a rise in demand for wood products and the customers' readiness to make decisions, also those involving larger investments. A fair number of substantial projects are in the planning and negotiation phase at present.
I have every confidence that the projects under negotiation at the present time will result in investment decisions and that we will reach the previous year's level of net sales this year despite the low order intake in the first quarter. Even now it is clear that this year we will regain the growth path in technology services sales.
April 26, 2013
President and CEO