Thursday, April 30, 2020
For worldwide, analyst said that profit growth has turned gloomy globally and thanks to trade wars. Companies regarding output and profatibility has further faded during this COVID-19 pandemic. The scenario is almost same for European and USA companies.
Raute’s profit outlook for 2020 has weakened. Net sales are estimated to decline from 2019 and operating profit is estimated to weaken clearly from the year 2019. Previously the company has estimated net sales for 2020 to remain at the same level as in 2019 and operating profit to weaken compared to 2019. In 2019, the Group’s net sales were EUR 151.3 million and the operating profit was EUR 8.5 million.
Records say that Raute has witnessed weakened profit outlook in 2011 and 2013 accordingly.
Adaptation to the declined net sales in the production activities of Raute’s units in Finland can be carried out by reducing subcontracting. The need for adaptation measures related to indirect and fixed costs will be considered in the coming weeks.
Tags: 2019, 2020, declined, net sales, operating profit, profit outlook, Raute, weakened
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