Vaisala Oyj Stock exchange release 7.5.2007 at 11.00
Interim report 1.1.-31.3.2007 (3 months)
- Net sales: EUR 50.3 (42.7) million, growth 18%.
- Operating profit: EUR 6.5 (1.7) million, growth 269%.
- Orders received: EUR 53.5 (68.5) million, decrease 22%.
- Order book: EUR 79.1 (78.6) million.
- Profit before extraordinary items, provisions and taxes: EUR 7.0
(1.4) million, growth 383%.
- Net profit for the review period: EUR 5.0 (0.9) million, growth
446%.
- Earnings per share: EUR 0.27 (0.05).
Overview
Vaisala's operating profit (EBIT) for January-March 2007 was better
than expected. This is mainly due to deliveries taking place earlier
than expected. Compared to the corresponding period in 2006, net
sales grew by 18% to EUR 50.3 million, while the number of orders
received decreased by 22%. The net sales of all Vaisala business
divisions grew. The greatest growth took place in Vaisala Solutions
and Vaisala Instruments divisions. Growth in net sales, together with
the profit of one of Vaisala Measurement Systems division's long-term
projects being recognized as revenue, raised the operating profit to
EUR 6.5 million.
Net profit for the review period increased and was EUR 5.0 (0.9)
million.
Vaisala Measurement Systems-, Vaisala Instruments- and Vaisala
Solutions -divisions' business has continued without major structural
changes.
Outlook for 2007
Positive market development is expected to continue in 2007. The
organic growth of net sales is expected to continue in 2007, and
operating profit is expected to be higher than in 2006.
Major seasonal variation is typical for Vaisala's business, and no
conclusions can be drawn regarding changes in demand based on one
quarter. Prerequisite for improvement in net sales and operating
profit is positive development in the number of orders received.
Vaisala aims to be the global market leader in its selected business
areas also in the future. Therefore investments in product
development and competitiveness will continue to be substantial.
Market situation, net sales and order book
The sustained maintenance and development of competitiveness has
enabled Vaisala to retain its strong market share. Net sales grew in
all other geographical areas except in North-America, where decrease
in EUR was 5% but growth in USD was 6%.
Vaisala Group's net sales for the review period grew by 18%, being
EUR 50.3 (42.7) million. Operations outside Finland accounted for 96%
(96%) of net sales. Demand remained on a good level, although the
value of orders received, EUR 53.5 (68.5) million, was 22% lower than
during the same period in 2006. At the end of the review period, the
order book stood at EUR 79.1 (78.6) million.
Performance and balance sheet
Operating profit for the review period was 12.8% of net sales, EUR
6.5 (1.7) million. The structure of financial reporting was changed
starting from 2007. Instead of being reported under other operating
income and expenses, the result of hedging activities is reported
below operating profit in financial income and expenses, where
foreign exchange gains and losses are also reported. The figures of
the review period as well as those of the accounting period 2006 have
been changed to correspond to the current reporting structure.
Profit before tax was 13.9% of net sales, EUR 7.0 (1.4) million. Net
profit for the review period was EUR 5.0 (0.9) million.
The Vaisala Group's solvency and liquidity remained strong. On March
31, 2007 the balance sheet total was EUR 216.9 (196.3) million. The
Group's solvency ratio at the end of the review period was 77% (78%).
The total of the Group's liquid assets was EUR 93.9 (74.7) million.
Research and development
Expenditure on research and development in the review period totaled
EUR 5.6 (5.0) million, being 11.1% of the Group's net sales.
Capital expenditure
Gross capital expenditure totaled EUR 1.4 million (17.8).
Vaisala Measurement Systems
Vaisala Measurement Systems division generated net sales of EUR 19.4
(17.2) million, growth 12%. The division's net sales were as
expected. Operating profit was better than usual, EUR 2.3 (0.5)
million. Operating profit was improved by the profit of one of
Vaisala Measurement Systems division's long-term projects being
recognized as revenue during the review period.
The number of orders received by Vaisala Measurement Systems
decreased by 31% compared to the corresponding period in 2006, and
was EUR 23.5 (34.2/1-3/2006; 17.6/1-3/2005) million.
Vaisala Instruments
Net sales of the Vaisala Instruments division were as expected during
the review period. Net sales grew by 20%, being EUR 17.2 (14.3)
million. Operating profit was EUR 5.0 (3.2) million.
The number of orders received by the Vaisala Instruments division
remained on the same level as in the previous year, being EUR 17.4
(17.4/1-3/2006; 16.1/1-3/2005) million.
Damages caused by fire at the VTT Technical Research Centre on
February 24th, 2006, which hampered the acquisition of components for
Vaisala carbon dioxide products, have been repaired, and product
deliveries are getting back to normal.
Competition in all product categories remains fierce. Vaisala's
global operating model, combined with significant investments in
research and development, form the basis to retain market leadership
and increase market share.
Vaisala Solutions
The review period was slightly better than expected for the Vaisala
Solutions division. Net sales grew by 22%, being EUR 13.7 (11.2)
million. Operating profit was EUR 0.0 (-1.4) million.
The number of orders received by the Vaisala Solutions division
decreased by 25% compared to the corresponding period in 2006, being
EUR 12.7 (17.0/1-3/2006; 10.4/1-3/2005) million. Due to the
characteristics of the division's business, operating profits
normally turn positive on the fourth quarter.
Changes in Vaisala Oyj's management
M.A. (chemistry) Matti Ervasti (51) has been appointed as Vaisala
Sales and Marketing Director and member of the Management Group
starting May 15, 2007.
M.Sc., eMBA Ari Meskanen (43) has been appointed as Vaisala Chief
Technology Officer and member of the Management Group starting May
1st, 2007.
Vaisala's share
At the end of the review period, Vaisala's Board of Directors had no
authorization to increase the company's share capital or to issue
convertible or warrant bonds.
The price of Vaisala's A share on the Helsinki Exchanges was EUR
33.07 on December 31, 2006, and EUR 34.98 at the end of the review
period. The highest share price quoted during the review period was
EUR 36.10 and the lowest EUR 29.43.
Vaisala's share capital at the end of the review period was EUR
7,660,807.87 and the total number of shares was 18,218,364.
A total of 2,014,559 Vaisala shares were traded during the review
period.
Own and parent company's shares
The company holds a total of 9150 of its own shares at the end of the
review period, representing 0.05% of the share capital and 0.01% of
votes. The compensation for the shares owned by the company is EUR
251,899.69.
Board of Directors
The Annual General Meeting appointed six members to the Board of
Directors. Yrjö Neuvo, who was in turn to retire by rotation, was
selected for another three-year term of office. Maija Torkko was
appointed as a new member.
Raimo Voipio will continue as Chairman of the Board of Directors and
Yrjö Neuvo will continue as Vice-Chairman.
Personnel
The average number of employees in the Vaisala Group during the
review period was 1081 (1051).
Some 20% (19%) of the personnel worked in research and development.
Approximately 41% (38%) of the Group's personnel worked outside
Finland.
Dividend
The Annual General Meeting decided that a dividend of EUR 0.85 per
share, corresponding to the total of EUR 15,477,831.90 will be
distributed for the financial year 2006. Dividend is not paid to the
A-shares that are held by
Vaisala Oyj. Dividend was paid on April 3, 2007.
PricewaterhouseCoopers Oy and Mr. Hannu Pellinen APA were chosen as
the Company's Authorized Public Accountants by the Annual General
Meeting.
Events outside the review period
M.Sc.(Physics) Scott Sternberg (43) has been appointed as Director of
the Vaisala service business starting June 1st, 2007.
Vantaa May 7th, 2007
Vaisala Oyj
Board of Directors
Financial indicators
Financial indicators 1-3 1-3 1-12
2007 2006 2006
Number of shares at March. 31 (1000 pcs) 18209 18209 18209
Number of chares at March 31 (1000 pcs), weighted
average 18209 18041 18168
Adjusted number of shares (1000 pcs) 18209 18067 18174
Earnings/share (EUR) 0.27 0.05 1.46
Earnings/share (EUR),fully diluted 0.27 0.05 1.46
Net cash flow from operating activities/share (EUR) 0.46 0.28 1.96
Equity/share (EUR) 8.73 8.05 9.32
Solvency ratio 77% 78% 81%
Gross capital expenditure (EUR Million) 1.36 17.78 20.40
Depreciation 2.0 3.6 10.8
Average personnel 1081 1051 1069
Order book (EUR Million) 79.1 78.6 77.6
Liabilities from derivative contracts 12.0 13.1 11.9
This interim report has been prepared in accordance with IAS 34
'Interim Financial Reporting.' The same accounting principles have
been applied as in the annual financial statements. The interim
financial statements have not been audited.
CONSOLIDATED INCOME STATEMENT
(IFRS, EUR Million) 1-3 1-3 Change 1-12
2007 2006 % 2006
Net sales 50.3 42.7 17.6 220.8
Cost of production and procurement -21.9 -21.1 3.4 -100.1
Gross profit 28.4 21.6 31.5 120.8
Other operating income 0.0 0.0 -66.7 0.1
Cost of sales and marketing -11.4 -10.7 6.7 -42.1
Development costs -5.6 -5.0 11.1 -20.6
Other administrative costs -4.9 -4.1 20.2 -19.6
Other operating cost 0.0 0.0 0.0
Operating profit 6.5 1.7 269.0 38.6
Financial income and expenses 0.5 -0.3 -278.1 -0.5
Share of results of associated
companies 0.0 0.0 0.0
Profit before tax 7.0 1.4 382.8 38.2
Income taxes -2.0 -0.5 273.8 -11.6
Profit after tax 5.0 0.9 446.0 26.6
Attributable to Equity holders of
the
parent 5.0 0.9 446.0 26.6
Taxes for the review period have
been
calculated under taxes.
Earnings per share for profit attributable to the equity
holders of the
parent
Basic earnings per share 0.27 0.05 449.3 1.46
Diluted earnigns per share 0.27 0.05 449.3 1.46
CONSOLIDATED BALANCE SHEET
(EUR million) 31.3.2007 31.3.2006 Change 31.12.2006
%
ASSETS
NON-CURRENT ASSETS
Intangible assets 20.4 23.9 -14.5 21.0
Tangible assets 33.1 35.3 -6.3 33.5
Investments in associates 0.5 0.3 58.9 0.4
Other financial assets 0.0 0.0 -9.1 0.2
Long-term receivables 0.1 1.8 -96.5 0.1
Deferred tax assets 5.7 5.4 5.8 5.2
CURRENT ASSETS
Inventories 18.3 17.9 2.3 17.6
Trade and other receivables 44.4 36.2 22.5 53.9
Accrued income tax receivables 0.6 0.8 -34.7 0.0
Financial assets recognized at
fair value through profit and
loss 41.6 35.4 17.4 41.2
Cash and cash equivalents 52.3 39.2 33.3 46.1
TOTAL ASSETS 216.9 196.3 10.5 219.2
SHAREHOLDERS' EQUITY AND
LIABILITIES
Equity attributable to equity
holders of the parent
Share capital 7.7 7.7 0.0 7.7
Share premium reserve 16.6 16.6 0.0 16.6
Reserve fund 0.1 0.1 -7.8 0.1
Translation differences -1.9 0.9 -306.9 -1.6
Profit from previous years 131.8 120.7 9.2 120.7
Own shares -0.3 -0.3 0.0 -0.3
Profit for the financial year 5.0 0.9 446.6 26.6
Total equity 159.0 146.7 8.4 169.8
Long-term liabilities
Retirement benefit obligations 0.3 0.6 -47.4 0.3
Interest-bearing liabilities 0.2 0.4 -37.3 0.3
Provisions 0.0 1.2 -96.8 0.0
Deferred tax liabilities 0.3 0.4 -24.5 0.4
Current liabilities
Current portion of long-term
borrowings 0.3 0.5 -43.6 0.3
Current interest-bearing
liabilities 0.3 0.2 34.6 0.3
Advances received 10.9 7.9 37.6 9.6
Accrued income tax payables 3.0 1.5 99.7 2.6
Trade and other payables 42.3 36.8 15.0 35.6
TOTAL LIABILITIES 216.9 196.3 10.5 219.2
CONSOLIDATED STATEMENT OF CHANGES IN
SHAREHOLDERS' EQUITY
March 31.2006, (EUR million)
Trans-
Share Share lation Retained Total
capi- Share Premium Reserve Own diffe- earn- equi-
tal Issue Reserve Fund Shares rences ings ty
Balance at
December
31,
2006 7.7 0.0 16.6 0.1 -0.3 -1.6 147.3 169.8
Translation
differences -0.3 -0.3
Net profit
for the
period 5.0 5.0
Dividend
paid -15.5 -15.5
Stock
options
exercised
Own shares
acquired
Own shares
transferred
Balance at
March
31.2007 7.7 0.0 16.6 0.1 -0.3 -1.9 136.8 159.0
Trans- Retain-
Share Share lation ed Total
capi- Share Premium Reserve Own diffe- earn- equi-
tal issue Reserve Fund Shares rences ings ty
Balance at
December
31,
2005 7.4 5.4 5.3 0.1 0.0 1.9 134.1 154.3
Translation
differences 0.0 -1.0 -1.0
Net profit
for
the period 0.9 0.9
Dividend
paid -13.4 -13.4
Stock
options
exercised 0.2 -5.4 11.3 6.1
Own shares
acquired -1.0 -1.0
Own shares
transferred 0.7 0.7
Balance at
March
31.2006 7.7 0.0 16.6 0.1 -0.3 0.9 121.6 146.7
CONSOLIDATED CASH FLOW STATEMENT
(EUR million)
1-3 1-3 Change 1-12
2007 2006 % 2006
Cash flows from operating activities
Cash receipts from customers 61.9 56.9 8.8 220.3
Other income from business operations 0.0 0.0 0.0
Cash paid to suppliers and employees -51.6 -49.3 4.6 -173.7
Interest received 0.7 0.5 46.0 2.2
Interest paid -0.1 0.0 -0.1
Other financial items, net 0.5 -0.9 -151.6 -3.3
Dividend received from business operations 0.0 0.0 -100.0 0.0
Direct tax paid -3.1 -2.1 48.0 -9.7
Cash flow from business operations (A) 8.4 5.1 64.1 35.7
Cash flow from investing activities
Investments in tangible and intangible
assets -1.5 -2.2 -30.6 -7.2
Acquisition of subsidiary, net of cash
acquired 0.0 -16.7 -100.0 -15.7
Proceeds from sale of fixed assets 0.0 0.0 0.1
Loans granted 0.0 0.0 0.0
Repayment of loan receivables 0.0 0.0 0.0
Other investments 0.1 0.0 -0.1
Cash flow from investing activities (B) -1.5 -18.9 -92.3 -22.9
Cash flow from financing activities
Equity issue 0.0 6.1 -100.0 6.1
Repayment of short-term loans 0.0 0.0 0.0
Withdrawal of long-term loans 0.0 0.0 0.0
Repayment of long-term loans 0.0 0.0 -0.5
Dividend paid and other distribution of
profit 0.0 0.0 -13.4
Cash flow from financing activities (C) 0.0 6.1 -100.0 -7.8
Change in liquid funds (A+B+C) increase (+)
/ decrease (-) 6.9 -7.7 -189.9 5.0
Liquid funds at beginning of period 87.3 81.4 7.3 81.4
Foreign exchange effect on cash -0.4 1.0 -138.0 0.9
Net increase in cash and cash equivalents 6.9 -7.7 -189.9 5.0
Liquid funds at end of period 93.9 74.7 25.7 87.3
Segment Report
Business segments
Vaisala
Measure- Vaisala Vaisala Other
ment Instru- Solut- Operat- Eliminat-
1-3/2007 Systems ments ions ions ions Group
Net sales to
external customers 19.4 17.2 13.7 0.0 0.0 50.3
Intragroup sales 0.0 1.8 0.1 0.0 -1.9 0.0
Net sales 19.4 19.0 13.8 0.0 -1.9 50.3
Operating profit 2.3 5.0 0.0 -0.8 0.0 6.5
Depreciation 0.7 0.5 0.1 0.8 0.0 2.0
Restructuring
expenses 0.0 0.0 0.0 0.0 0.0 0.0
Segment Report
Business segments
Vaisala
Measure- Vaisala Vaisala Other
ment Instru- Solut- Operat- Eliminat-
1-3/2006 Systems ments ions ions ions Group
M€
Net sales to
external customers 17.2 14.3 11.2 0.0 0.0 42.7
Intragroup sales 0.0 1.9 0.1 0.0 -2.0 0.0
Net sales 17.2 16.2 11.3 0.0 -2.0 42.7
Operating profit 0.5 3.2 -1.4 -0.6 0.0 1.7
Depreciation 1.9 0.5 0.2 0.9 0.0 3.6
Restructuring
expenses 0.8 0.0 0.0 0.0 0.0 0.8
Vaisala
Measure- Vaisala Vaisala Other
ment Instru- Solut- operat- Eliminat-
1-12/2006 Systems ments ions ions ions Group
M€
Net sales to
external customers 93.2 64.3 63.3 0.0 0.0 220.8
Intragroup sales 0.0 11.1 0.4 0.0 -11.5 0.0
Net sales 93.2 75.3 63.7 0.0 -11.5 220.8
Operating profit 19.8 19.5 5.4 -6.1 0.0 38.6
Depreciation 4.8 1.9 0.7 3.4 0.0 10.8
Restructuring
expenses 0.0 0.0 0.0 0.0 0.0 0.0
Further information:
Jouni Lintunen, CFO +358 9 8949 2215, GSM +358 40 579 0181
www.vaisala.com
Vaisala Oyj
Distribution:
Helsinki Exchanges
Finnish News Agency
Major Media