Vaisala Corporation Stock exchange release February 18, 2011 at 9.00
a.m.
Vaisala Group financial statement bulletin 2010
Fourth quarter net sales and order intake at high level. Order book remains
strong.
Guidance for full year 2011: Improving sales and profitability.
October - December 2010
- Orders received: EUR 89.3 (57.5) million, growth 55.3%.
- Net sales EUR 84.5 (80.4) million, growth 5.2%. Organic growth of net
sales -0.3%.
- Operating profit EUR 16.6 (7.3) million, growth 127.4%.
- Earnings per share EUR 0.67 (0.28), growth 136.5%.
Fourth Quarter Comments
Net sales were at high level and the operating profit higher compared to 2009.
Growth was high in the Controlled Environment Business Area both in terms of net
sales and operating profit.
In December, the Weather Critical Operations business area was awarded a EUR 9
million contract to supply weather observation systems to six airports in the
Sultanate of Oman during the years 2011-2014.
The order book remained strong, and the number of orders received increased by
55.3 percent year on year.
Certain delivery improvement occured, but value of delayed shipments was still
at EUR 8 million.
January - December 2010
- Orders received: EUR 286.7 (237.0) million, growth 21.0%.
- Net sales EUR 253.2 (231.8) million, growth 9.2%. Organic growth of net
sales 0.4% (comparable pro forma net sales in 2009, including QTT and Veriteq
acquisitions EUR 252.2 million).
- Operating profit EUR 11.8 (12.0) million, decline 1.0%. Pro forma
operating result 2009, including QTT and Veriteq figures, was EUR 11.6 million.
- Earnings per share EUR 0.56 (0.38), growth 48.4%.
- Cash flow from business operations EUR 25.3 (-3.2) million.
- Consolidated liquid assets EUR 35.3 (50.1) million.
- Board of Directors proposes a dividend of EUR 0.65 per share
2010 Overview
Vaisala released preliminary information on its 2010 financial statement on
February 1, 2011.
Net sales EUR 253.2 million in 2010 were 9.2 percent higher than in 2009.
Comparable pro forma net sales in 2009, including QTT and Veriteq acquisitions,
were EUR 252.2 million. Operating profit in 2010 remained at the same euro level
as in 2009.
Net sales, operating profit and orders received improved significantly in the
second half of the year compared to the previous year and the first half of
2010.
The performance of the Controlled Environment Business Area was strong
throughout the year, whereas the net sales of the Meteorology Business Area
declined year on year. The performance of the Weather Critical Operations
Business Area did not meet the expectations, mostly due to lack of big projects
and funding delays in the Airports, Roads and Defense businesses.
Delivery delays caused by component shortages and capacity constraints in the
supply network affected the revenue generation especially in mid-year. The
delivery capability and production capacity are now improving.
Services sales in the review period grew by 20.2 percent to EUR 33.8 million.
One off costs of EUR 2.4 million relating to the cost efficiency program were
booked in the second quarter. One off costs relating to the integration of the
QTT were EUR 1.3 million in 2010.
On September 30, 2010, Vaisala signed a contract to sell its oxygen measurement
technology and business to SICK Maihak GmbH. A profit of EUR 1.3 million was
entered for the transaction. The profit was booked in Eliminations and other.
Implementation of the company-wide ERP program progressed in 2010 and continues
until the end of 2012.
In 2010, Vaisala implemented extraordinary projects to align technology
platforms and improve product modularity and mass customization capability. In
total, Vaisala launched 34 products in 2010. R&D spend is expected to decrease
in 2011.
Net sales grew in all regions: APAC +15.5%, EMEA +8.8% and Americas +6.0%.
Organic growth in Americas of combined Vaisala, QTT, and Veriteq was -12.8
percent.
Key figures
1-12 1-12 Change 10-12 10-12 Change
2010 2009 (%) 2010 2009 (%)
(MEUR) (MEUR) (MEUR) (MEUR)
Group net sales 253.2 231.8 9.2 84.5 80.4 5.2
Meteorology 75.2 80.8 -7.0 25.5 27.5 -7.2
Controlled Environment 63.4 49.2 29.0 18.9 12.1 55.7
Weather Critical Operations 114.6 101.8 12.5 40.1 40.7 -1.5
Operating profit, Group 11.8 12.0 -1.0 16.6 7.3 127.4
Meteorology 2.8 3.4 -18.4 5.7 3.0 92.5
Controlled Environment 8.9 3.4 163.9 3.0 -1.5 299.2
Weather Critical Operations 1.0 5.5 -81.4 7.6 6.1 25.2
Eliminations and other -0.9 -0.4 0.3 -0.3
Profit before taxes 14.0 10.1 38.8 17.4 7.8 123.8
Net profit 10.2 6.9 48.4 12.1 5.1 136.6
Orders received 286.7 237.0 21.0 89.3 57.5 55.3
Order book 129.0 95.5 129.0 95.5
Earnings per share 0.56 0.38 48.4 0.67 0.28 136.5
Return on equity (%) 5.6 3.7 5.6 3.7
President and CEO Kjell Forsén on 2010 result
"A clear highlight in 2010 was the Life Science and High Technology (LSH)
business, which has demonstrated high growth numbers, backed up by the
acquisition of Veriteq. Overall, there was very positive development in the
Controlled Environment Business Area which grew by 29 percent with a healthy
profitability.
Net sales in the fourth quarter were record high and entering the new year, our
order book is at an all-time high level.
In June, we announced an efficiency program to improve profitability and
competitiveness. Savings were sought from personnel reductions, reductions in
the use of professional services, more efficient sourcing and reduced travel
costs. In terms of personnel reductions, the consultation processes were
completed in June. As a result of the program, Vaisala's profitability has
clearly improved towards the year-end.
During 2010 we were hit by the global shortage of electronics components and
that also caused severe delays in our subcontracting network. The situation has
improved towards the end of the year and the corrective action taken has given
good results. The delivery capability and production capacity are now improving.
Entering 2011 we have a solid foundation to build on. Not only is our order book
strong and cost base reduced, but our operational performance has also improved.
Our delivery machine proved its capability in the fourth quarter and our R&D
efforts produced more product launches than ever before. Our customer-based
strategy is starting to deliver."
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. Also operating profit is expected to improve moderately.
As in previous years, seasonal fluctuation is typical of Vaisala's business, so
the first quarter appears to be modest.
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 Group Financial Report for 2010. 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 Hotel Kämp, Paavo Nurmi meeting
room, Pohjoisesplanadi 29, starting at 12.00 noon. Please register by email
toliisa.ahtiluoto@vaisala.com.
A live webcast of the presentation of Kjell Forsén, President and CEO of
Vaisala, will be sent starting at 12:00 am (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 more than 70 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#1490385]
