Raute - Sales beat, operating margin lower
Raute managed a 17% y/y top line growth in Q1. Order intake remained at a healthy level considering there were no major mill-scale orders. However, EBIT fell in both absolute and relative terms due to some exceptional cost items (while the comparison period also included some positive items).
- Q1 net sales amounted to EUR 41.3m vs. our EUR 32.3m estimate.
- Order intake was EUR 32m compared to EUR 68m a year ago. The orders mainly consisted of smaller items. Technology services orders grew strongly. Order book totaled EUR 84m (vs. EUR 142m a year ago).
- Operating profit stood at EUR 2.6m vs. our expectation of EUR 3.5m. Exceptional cost items burdened operating profit.
- The company managed an operating profit margin of 6.3%, whereas we expected 10.9%.
- Raute maintains its 2019 outlook, expecting 2019 net sales and operating profit at a similar level compared to the previous year. Overall, activity has remained at a good level.