Raute Corporation reported robust progress in its project deliveries for the first quarter of 2024, despite a challenging market environment, according to the company's latest interim report. The Finnish technology company, which specializes in machinery and services for the wood processing industry, saw its order intake decrease to Euro 36 million from Euro 67 million in the same period last year, reflecting cautious customer investment behavior. However, its order book surged to Euro 259 million, up from Euro 121 million, bolstered by strong demand for wood processing solutions.
For the period from January to March 2024, Raute achieved net sales of Euro 44.7 million, representing a 21.4% increase compared to Euro 36.8 million in the prior year. The company's comparable EBITDA was Euro 3.0 million, slightly up from Euro 2.8 million, accounting for 6.7% of net sales, a slight dip from 7.7% previously.
The operating profit also improved, reaching Euro 1.5 million compared to Euro 0.9 million last year, while earnings per share doubled to Euro 0.20. The equity ratio strengthened to 49.7% from 41.4%, reflecting a healthier balance sheet.
The market faced ongoing uncertainties in the first quarter of 2024, with modest levels and pressured pricing in both hardwood and softwood plywood. Demand for laminated veneer lumber (LVL) remained more stable. However, the infiltration of illegally traded Russian birch plywood at lower prices is impacting European producers, despite sanctions. High interest rates and general economic uncertainties continue to suppress demand in key consumer industries like construction and commercial vehicle production, directly affecting Raute's customers' investment activities, which are primarily focused on maintaining existing production capabilities. This environment supports Raute's after-sales business but dampens the demand for new production lines and modernizations.
The quarter's highlight was a Euro 20 million order from AmberBirch in Latvia for greenfield veneer mill machinery, underscoring Raute's ability to secure significant contracts despite economic headwinds.
Raute's President and CEO, Mika Saariaho, highlighted the successful quarter, noting that the solid order book and the range of ongoing projects provide a stable foundation for the year. Despite some operational challenges due to political strikes in Finland, the company managed to mitigate most of the adverse effects.
The company reiterated its full-year guidance, expecting net sales for 2024 to range between Euro 170 million and Euro 195 million and forecasting a comparable EBITDA of Euro 10 million to Euro 14 million. This outlook reflects both the ongoing market uncertainties and Raute's strong position to capitalize on opportunities in the engineered wood product segment.
