HONKARAKENNE ISSUES OUTLOOK FOR 2020

HONKARAKENNE OYJ                                  Inside information 20 August 2020 at 9:15 a.m.

HONKARAKENNE ISSUES OUTLOOK FOR 2020

Honkarakenne issues outlook for 2020.

Honkarakenne’s view is that revenue (net sales) in 2020 will be on par with previous year. Adjusted profit before taxes is however weaker than previous year.

Basis for the outlook

The company's outlook for 2020 is based on the existing order book and the view on market development. Deliveries towards the end of the year include project deliveries and deliveries for project orders may typically be subject to last moment changes and delivery re-scheduling. In addition, the effects of the corona situation on order intake and deliveries, particularly in Asia and Europe, weakens our outlook. Investments in business development towards the end of the year will lower the full-year result.

Previous outlook

In April, Honkarakenne issued a profit warning and announced that it would not issue new guidance for 2020 because it is difficult to estimate the duration of the uncertainty and all the effects on business caused by the coronavirus pandemic.

Honkarakenne's half year financial report for January-June 2020 will be published today on 20 August 2020.

HONKARAKENNE OYJ

Board of Directors

Further information:

Marko Saarelainen, President and CEO, tel. +358 (0)40 542 0254, or

Leena Aalto, Vice President - Finance, CFO, tel. +358 (0)40 769 4590, 

DISTRIBUTION

NASDAQ OMX Helsinki

Key media

Financial Supervisory Authority

Under its Honka® brand, Honkarakenne manufactures high-quality, healthy and ecological detached houses, holiday homes and public buildings using Finnish solid wood. The company has delivered 85,000 buildings to more than 50 countries. House packages are made in Finland, the companys’s own factory is located in Karstula, Finland. In 2019, the Honkarakenne Group had revenue (net sales) of MEUR 47.5, of which exports accounted for 34%.