Vaisala Corporation Stock exchange release 6 May 2011 at 9.00 a.m.
First quarter net sales at good level. Orders received down, order book remains
strong. Outlook unchanged.
January - March 2011
First quarter highlights
* Orders received: EUR 57.0 (68.1) million, decline 16%.
* Net sales EUR 58.9 (49.3) million, growth 20%. Net sales growth compared to
proforma Q1/2010 net sales 16%.
* Operating result EUR -0.9 (-6.2) million.
* Earnings per share EUR -0.13 (-0.18).
* Cash flow from business operations EUR 14.7 (6.7) million.
* Consolidated liquid assets EUR 47.7 (42.2) million.
First Quarter Comments
Net sales were at a high level, partly because the delayed backlog from 2010 was
caught up. The operating result improved year on year. Following an
extraordinarily strong order intake in the fourth quarter of 2010, orders
received decreased by 16 percent compared to the first quarter of 2010. The
order book remained strong. Vaisala's delivery performance was normalized.
Growth was high in the Controlled Environment Business Area both in terms of net
sales and operating result. The net sales of the Weather Critical Operations
Business Area grew and the operating result improved. The Meteorology Business
Area increased their net sales but the operating result declined due to low
margins of certain delivery projects especially in the emerging markets.
Net sales grew in all regions: APAC +42%, EMEA +9% and Americas +16%. The net
sales growth in Americas compared to proforma Q1/2010 net sales was 8 percent.
Key figures
Proforma * Change (%) Proforma *
1-3 1-3 Change 1-3 1-12 1-12
2011 2010 (%) 2010 2010 2010
(MEUR) (MEUR) (MEUR) (MEUR) (MEUR)
Group net sales 58.9 49.3 19.6 50.7 16.2 253.2 254.6
Meteorology 14.9 12.0 24.4 12.0 24.4 75.2 75.2
Controlled
Environment 18.6 13.6 36.0 15.1 23.2 63.4 64.9
Weather Critical
Operations 25.4 23.6 7.6 23.6 7.6 114.6 114.6
Operating result,
Group -0.9 -6.2 85.7 -6.2 85.7 11.8 11.8
Meteorology -3.8 -3.4 -10.6 -3.4 -10.6 2.8 2.8
Controlled
Environment 4.0 1.4 177.8 1.4 177.8 8.9 8.9
Weather Critical
Operations -1.0 -3.2 68.5 -3.2 68.5 1.0 1.0
Eliminations and
other -0.1 -1.0 69.1 -1.0 69.1 -0.9 -0.9
Result before taxes -2.6 -4.4 40.2 -4.4 40.2 14.0 14.0
Net result for
review period -2.3 -3.3 31.0 -3.3 31.0 10.2 10.2
Orders received 57.0 68.1 -16.3 286.7
Order book 127.1 114.3 129.0
Earnings per share -0.13 -0.18 31.0 -0.18 31.0 0.56 0.56
Return on equity
(%) -5.3 -7.7 5.6 5.6
* The company acquired Veriteq company in its Controlled Environment business
area on 1 April 2010. Proforma figures of the first quarter of 2010 and full
year 2010 presented in this release for comparison purposes include the first
quarter 2010 figures of Veriteq. For example, when referring to organic growth,
the comparison is made against Vaisala 2010 proforma figures.
President and CEO Kjell Forsén on the first quarter result
"Our Controlled Environment business continues its strong performance. All three
industrial segments increased their sales with good profitability.
The first quarter is typically slow for the Weather Critical Operations and
Meteorology Business Areas, and this year makes no exception. The loss in the
Weather Critical Operations Business Area was smaller than a year ago, whereas
the performance of the Meteorology business suffered from low profitability of
the project business, especially in the emerging markets.
Vaisala's Service business grew by 20 percent in 2010 compared to 2009, and the
first quarter of this year shows continued strong growth. The share of service
business is now 16 percent of the total net sales.
Order intake has been slow in our weather-related businesses, especially in the
early part of the quarter. We have not lost any major business but have not
received any large project orders either. Budget cuts and the subsequent
investment limitations in the public sector still seem to affect our customers
especially in the weather businesses. The order book remains strong.
Vaisala's delivery capability is now restored. However, we are closely
monitoring component availability for possible signs of global shortage and
impact of the situation in Japan."
Market outlook
Uncertainty in the global economy and shifts in exchange rates are still
expected to affect Vaisala's business. Based on the structure of Vaisala's
customer base and the orders received, the company's market situation is
expected to remain mostly unchanged in 2011.
Financial guidance
Vaisala expects its net sales in 2011 to grow moderately from the preceding
year's proforma net sales. Also the operating profit is expected to improve
moderately. Proforma net sales in 2010 were EUR 254.6 million.
Vaisala's long-term business outlook remains unchanged.
New disclosure procedure
Vaisala is now adopting the new disclosure procedure enabled by the Standard
5.2b published by the Finnish Financial Supervision Authority. This is a summary
of Vaisala's Q1/2011 Interim Report. The complete report is attached as pdf file
to this release and is also available at Vaisala website
atwww.vaisala.com/investors.
Briefing and webcast
Briefing for analysts and media will be held in Tapahtumatalo Bank, Meeting
Point 2nd floor, Unioninkatu 20, Helsinki starting at 12.00 noon. Please
register by email toliisa.ahtiluoto@vaisala.com.
A live audiocast of the presentation of Kjell Forsén, President and CEO of
Vaisala, will be sent starting at 12:00 noon (GMT +2). The webcast will be
available at www.vaisala.com/investors. It will be recorded and published at
the same address by 2:00 p.m. (GMT +2) on the same day.
Further information:
Jouni Lintunen, CFO, tel +358 9 8949 2215, mobile +358 40 579 0181
Vaisala is a global leader in environmental and industrial measurement. Building
on 75 years of experience, Vaisala contributes to a better quality of life by
providing a comprehensive range of innovative observation and measurement
products and services for meteorology, weather critical operations and
controlled environments. Headquartered in Finland, Vaisala employs over 1300
professionals worldwide and is listed on the NASDAQ OMX Helsinki.
www.vaisala.com
Distribution:
NASDAQ OMX Helsinki
Key media
[HUG#1513163]
