Vaisala Oyj's interim report 1.1.2004 - 30.6.2004 (6 months)


Market situation
 
Demand stopped growing at the beginning of 2002 and has continued to be unstable in most divisions ever since.
 
The demand for Vaisala's products is post-cyclical. As a result, when an upswing in the global economy begins, its effects are visible only after a delay. Positive signs have been received from the Vaisala Instruments division.
 
Vaisala's focus on maintaining and developing competitiveness has enabled it to retain its market share, and the company's market position is still strong.
 
Net sales and order book
 
The Vaisala Group's net sales for the review period were EUR 81.5 million (1-6/2003: EUR 83.4 million). Operations outside Finland accounted for 97% (96%) of net sales. The Group received new orders worth EUR 84 million (84) during the review period. The order book at the end of the review period was EUR 60 million (76).
 
Vaisala Soundings
 
The Vaisala Soundings division generated net sales of EUR 26.0 million (28.4).
 
Vaisala Solutions
 
The Vaisala Solutions division generated net sales of EUR 20.0 million (22.5).
 
Vaisala Instruments
 
The Vaisala Instruments division generated net sales of EUR 25.9 million (21.5).
 
During the review period, Vaisala discontinued its ammonia measurement business.
 
Vaisala launched a new carbon dioxide probe for ecological measurements in April and a new dewpoint transmitter for natural gas humidity measurements in June.
 
Vaisala Remote Sensing
 
The Vaisala Remote Sensing division generated net sales of EUR 9.6 million (11.0).
 
In January, Vaisala announced its new lightning detection system that combines the technologies acquired through two separate acquisitions into one modular product family. The new product line reduces the amount of equipment to be maintained and improves product profitability.
 
Performance
 
Operating profit for the review period was EUR 7.7 million (7.0). Profit before extraordinary items was 10.2% of net sales, or EUR 8.3 million (5.7). Goodwill depreciation from acquisitions totaled EUR 1.7 million (2.1).
 
Profit has improved due to efficiency improvement measures taken in 2003 and realized in full during 2004.
 
Balance sheet
 
The Vaisala Group's equity to assets ratio and liquidity remained strong. On June 30, 2004, the balance sheet total was EUR 160.6 million (161.4). The Group's solvency ratio at the end of the review period was 86% (86%).
 
Research and development
 
R&D expenditure totaled EUR 11.5 million (10.3) in the review period, representing 14.1% of the Group's net sales.
 
Other events during the review period
 
The Annual General Meeting re-elected Board Members Yrjö Neuvo, Ph.D. (EE) and Gerhard Wendt, Ph.D., whose terms had expired, for an additional three years. PricewaterhouseCoopers Oy, Authorized Public Accountants and Jukka Ala-Mello APA were elected as auditors.
 
Capital expenditure
 
Gross capital expenditure in non-current assets totaled EUR 2.2 million (8.5) during the review period.
 
Vaisala's shares
 
The price of Vaisala's A share on the Helsinki Exchanges was EUR 24.50 at the beginning and EUR 19.50 at the end of the review period. The highest quotation during the review period was EUR 24.50 and the lowest EUR 17.25.
 
Vaisala's share capital at the end of June was EUR 7,349,905.88 and the total number of shares was 17,479,000.
 
A total of 810,029 Vaisala shares were traded during the review period.
 
Personnel
 
The total number of employees in the Vaisala Group at the end of the review period was 1,117, compared with 1,157 at the end of the corresponding period in 2003. Some 21% (25%) of the personnel worked in research and development. Approximately 36% (36%) of the Group's personnel worked outside Finland.
 
Board of Directors and President & CEO
 
The members of the Board of Directors are Raimo Voipio M.Sc.(Eng.)(Chairman), Professor Pekka Hautojärvi, Professor Yrjö Neuvo (Executive Vice President), Mikko Niinivaara M.Sc.(Eng.), Mikko Voipio M.Sc.(Eng.) and Gerhard Wendt Ph.D. The Group's President & CEO is Pekka Ketonen, D.Tech.(h.c.).
 
Outlook
 
The market outlook has not significantly changed. Net sales for 2004 are expected to be at a slightly lower level than in the previous year and profit is expected to increase slightly.
 
Vaisala aims to be the global market leader in its selected business areas in the future, too. Therefore, investments in product development and competitiveness will continue to be substantial.
 
Vantaa, Finland, 9 August, 2004
 
Vaisala Oyj
Board of Directors
 
The full report including tables can be downloaded from the following link.

Anhänge

Interim report 1.1.2004 - 30.6.2004 (6 m