Raute - Miss driven by order book timing
Raute’s Q1 revenue and EBIT came in clearly below our expectations. According to Raute the pandemic had some negative impact, but the miss relative to our estimates seems to have been mostly attributable to order book scheduling. Order intake was clearly above our estimate, meaning order book increased slightly during the quarter.
- Raute posted EUR 23.8m Q1 revenue, compared to our 36.0m estimate. Project deliveries generated EUR 14.0m revenue (which we had expected at EUR 23.0m), while technology services sales amounted to EUR 9.8m (vs our EUR 13.0m estimate). The rather low top line figure was due to the timing of order book and a few projects’ postponing but the pandemic also had a negative impact, which Raute says was limited but not insignificant.
- Q1 EBIT amounted to EUR -3.0m vs our EUR 1.5m estimate.
- Order intake was EUR 25m in Q1 while we expected EUR 15m. The intake consisted of small and mid-sized individual production line deliveries and modernizations. Most of the orders received were attributable to projects that were negotiated long before the pandemic. Raute’s customers have continued to start up their investment projects in the face of the pandemic.
- Order book stood at EUR 92m, compared to our EUR 67m expectation. In our view this is a rather strong figure.