Vaisala Corporation Stock exchange release August 4, 2011 at 9:00 a.m.
Net sales at good level. Orders received decreased, order book remains strong.
Outlook unchanged.
January - June 2011
Second quarter highlights
* Orders received: EUR 54.8 (63.7) million, decrease 14%.
* Net sales EUR 61.9 (54.7) million, increase 13%.
* Operating result EUR 3.2 (-4.9) million.
* Earnings per share EUR 0.10 (-0.08).
Review period highlights
* Orders received: EUR 111.8 (131.8) million, decrease 15%.
* Net sales EUR 120.8 (104.0) million, increase 16%. Net sales increase 15%
compared to proforma* H1/2010 net sales.
* Operating result EUR 2.3 (-11.1) million.
* Earnings per share EUR -0.03 (-0.26).
* Cash flow from business operations EUR 12.7 (9.9) million.
* Cash and cash equivalents EUR 29.8 (34.6) million.
Comments on the Second Quarter
In the second quarter of 2010, the net sales and result were affected by
shipment delays and one-off costs from personnel reductions. The combined one-
off impact of these on the net sales was approximately EUR 11 million, and on
the operating profit approximately EUR 8 million.
The Controlled Environment and Weather Critical Operations business areas
improved their net sales and operating result. The Meteorology business area's
net sales decreased but the operating result improved.
Key Figures
1-6 1-6 Change 4-6 4-6 Change 1-12
2011 2010 (%) 2011 2010 (%) 2010
(MEUR) (MEUR) (MEUR) (MEUR) (MEUR)
Group net sales 120.8 104.0 16.1 61.9 54.7 13.1 253.2
Group net sales (proforma*) 120.8 105.4 14.6 254.6
* Meteorology 31.1 31.1 -0.2 16.1 19.1 -15.7 75.2
* Controlled Environment 35.5 26.9 31.7 16.9 13.3 27.4 63.4
* Controlled Environment
(proforma*) 35.5 28.3 25.2 16.9 13.3 27.4 64.9
* Weather Critical Operations 54.2 45.9 18.1 28.8 22.3 29.1 114.6
Operating result, Group 2.3 -11.1 3.2 -4.9 11.8
* Meteorology -3.3 -3.9 0.5 -0.5 2.8
* Controlled Environment 6.0 2.1 2.0 0.6 8.9
* Weather Critical Operations 0.7 -7.3 1.7 -4.1 1.0
Eliminations and other -1.2 -2.0 -1.1 -1.0 -0.9
Result before taxes 0.0 -7.1 2.6 -2.6 14.0
Net result for review period -0.5 -4.8 1.8 -1.4 10.2
Orders received 111.8 131.8 -15.2 54.8 63.7 -14.0 286.7
Order book 120.0 123.3 120.0 123.3 129.0
Earnings per share -0.03 -0.26 0.10 -0.08 0.56
Return on equity (%) -0.6 -5.4 5.6
* Vaisala acquired Veriteq as part of its Controlled Environment business area
on April 1, 2010. The proforma figures for the first half of 2010 and the full
year 2010 presented in this release for comparison purposes include the first
quarter 2010 figures of Veriteq. For example, references to organic growth are
based on comparisons with Vaisala 2010 proforma figures.
President and CEO Kjell Forsén on the Second Quarter Result
"During the first half of the year Vaisala enjoyed growth in both net sales and
profitability. Sales growth in our weather business was limited by cuts in
governmental spending in many of our markets, and by the political instability
of some markets.
Strong growth in the Controlled Environment business area continued, organically
25 percent compared to last year, and the profitability was at a high level. The
industrial market remains active and the roll-out of our Life Science portfolio
is progressing as planned.
The Weather Critical Operations business area increased their net sales by 18
percent, and this also shows in the improved result. The order intake was slower
than expected due to the budget cuts of government customers in many of our
markets.
The Meteorology business area suffered from low order intake, for the same
reason.
Despite the slower than expected order intake and the increased uncertainty in
the markets, the order book remains strong and our guidance for the full year is
unchanged."
Market Outlook
Current increased uncertainty in the global economy and shifts in exchange rates
are expected to affect especially Vaisala's weather related business. However,
based on Vaisala's technology and the structure of Vaisala's customer base, the
company's competitive position 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.
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 Q2/2011 Interim Report. The complete report is attached as pdf file
to this release and is also available at Vaisala website at
www.vaisala.com/investors.
Briefing and Webcast
Briefing for analysts and media will be arranged in Hotel Kämp, Paavo Nurmi
meeting room, Pohjoisesplanadi 29, Helsinki, starting at 12:00 a.m. Please
register to the briefing by email to liisa.ahtiluoto@vaisala.com.
A live audiocast of the presentation of Kjell Forsén, President and CEO of
Vaisala, will be sent starting at 12:00 a.m. (GMT +3). The audiocast will be
available at www.vaisala.com/investors. It will be recorded and published at
2:00 p.m. (GMT +3) at the same address 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#1536118]
