Vaisala Oyj Stock exchange release 7.8.2007 at 12.50 1(10)
Vaisala Oyj's Interim report January - June 2007 (6 months)
- Net sales: EUR 100.8 (92.5) million, growth 9.0%.
- Operating profit: EUR 15.1 (10.4) million, growth 45.7%.
- Orders received: EUR 107.9 (125.9) million, decrease 14.3%.
- Order book: EUR 82.6 (86.8) million.
- Profit before extraordinary items, provisions and taxes: EUR 16.4
(9.5) million, growth 71.7%.
- Net profit for the review period: EUR 11.8 (6.5) million, growth
81.9%.
- Earnings per share: EUR 0.65 (0.36), growth 81.1%.
2nd quarter 2007
- Net sales: EUR 50.5 (49.7) million, growth 1.6%
- Operating profit: EUR 8.7 (8.6) million, growth 0.5%
- Orders received: EUR 54.4 (57.4) million, decrease 5.2%
- Profit before extraordinary items, provisions and taxes: EUR 9.4
(8.1) million, growth 15.9%
- Net profit for the 2nd quarter: EUR 6.8 (5.6) million, growth 22.0%
- Earnings per share: EUR 0.37 (0.31) million, growth 22.0%
Outlook for 2007
Market development is expected to remain stable in 2007. Net sales
and operating profit are expected to be slightly higher than in 2006.
Prerequisite for improvement in net sales and operating profit is
positive development in the number of orders received. Vaisala's
business is characterized by great seasonal variations. Due to orders
received after the review period, the number of orders received in
the past 12 months at the end of July is slightly greater than at the
corresponding time the year before.
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.
CEO Kjell Forsén's comments on the January - June result:"I am happy with the growth in net sales in the first six months as
well as the operating profit, which exceeded expectations. The market
situation looks good in all our businesses, although the orders
received have not yet reached the desired level. We have started
measures to speed up growth. Important measures include making our
global sales network more efficient and investing in the development
of Vaisala service business."
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 geographical segments except in Africa, and South and Central
America, where decrease was 4%.
Orders received decreased by 14% compared to the corresponding period
in 2006, being EUR 107.9 (125.9) million. The situation has improved
thanks to orders received in July. The majority of Vaisala's sales of
meteorological systems and solutions are project sales, where
sales-order processes are long and might cause great seasonal
variations.
Vaisala Group's net sales for the review period grew by 9%, being EUR
100.8 (92.5) million. Net sales grew in all divisions, with the
greatest growth taking place in Vaisala Instruments division.
Operations outside Finland accounted for 96% of net sales as before.
The order book stood at EUR 82.6 (86.8) million at the end of the
review period. Some EUR 21 million of the order book will be
delivered in 2008 or later.
Performance and balance sheet
Operating profit for the review period was 15.0% of net sales, EUR
15.1 (10.4) 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 16.2% of net sales, EUR 16.4 (9.5) million,
growth 72%. Net profit for the review period was EUR 11.8 (6.5)
million, growth 82%.
The Vaisala Group's solvency and liquidity remained strong. On June
30, 2007 the balance sheet total was EUR 204.8 (184.3) million. The
Group's solvency ratio at the end of the review period was 85% (86%).
The total of the Group's liquid assets was EUR 87.0 (67.5) million.
Research and development
Expenditure on research and development in the review period totaled
EUR 10.4 (9.5) million, being 10.4% of the Group's net sales.
Capital expenditure
Gross capital expenditure totaled EUR 3.4 million (17.4).
Vaisala Measurement Systems
Vaisala Measurement Systems division generated net sales of EUR 40.1
(38.2) million, growth 4.9%. Operating profit grew to EUR 7.2 (4.0)
million.
Orders received by Vaisala Measurement Systems decreased by 24%,
being EUR 44.0 (58.0/1-6/2006; 39.1/1-6/2005) million.
Vaisala received its first weather radar orders
Vaisala received its first weather radar orders during the review
period. The orders include a total of five dual-polarization radars,
which carry Sigmet signal processors and application software. The
orders came from the Estonian Meteorological and Hydrological
Institute, and a long-standing Vaisala customer. When fully realized,
the total value of the radar orders is approximately EUR 4 million.
Deliveries will be carried out between November 2007 and June 2008.
Vaisala Instruments
Net sales of the Vaisala Instruments division grew by 14.7%, being
EUR 34.5 (30.0) million. Operating profit of the review period grew
to EUR 10.5 (9.1) million.
The number of orders received by the Vaisala Instruments division
remained on the same level as in the previous year, being EUR 33.9
(33.9/1-6/2006; 29.9/1-6/2005) million.
Damages caused by fire at the VTT Technical Research Centre in
February 2006 have been repaired, and the availability of components
for Vaisala carbon dioxide products is back to normal. Product
deliveries are already running almost as before. The division
believes to reach the sales goals set for carbon dioxide products in
2007.
Competition in all product categories for industrial measurements
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
Net sales of the Vaisala Solutions division grew by 8.4%, being EUR
26.2 (24.2) million. Operating profit was EUR -0.7 (-1.2) million.
Due to the characteristics of the division's business, operating
profits normally turn positive on the fourth quarter.
The number of orders received by the Vaisala Solutions division
decreased by 11%, being EUR 30.1 (34.0/1-6/2006; 22.2/1-6/2005)
million.
Personnel
The average number of employees in the Vaisala Group during the
review period was 1095 (1065). 39% (38%) of the Group's personnel
worked outside Finland.
Changes in Vaisala Oyj's management
Matti Ervasti (51), M.A. (chemistry), was appointed as Vaisala Sales
and Marketing Director and member of the Management Group starting
May 15, 2007. Ari Meskanen (43), M.Sc.(Eng), eMBA, was appointed as
Vaisala Chief Technology Officer and member of the Management Group
starting May 1st, 2007. Scott Sternberg (43), M.Sc.(Physics), was
appointed as Director of the Vaisala service business and member of
the Management Group starting June 1st, 2007.
Short-term risks and uncertainties
Vaisala's risk management policy covers strategic, operative,
accident, and financial risks. The goal of the policy is to ensure
the safety of Vaisala personnel, operations and products and
continuity of operations.
The usual risks related to international business affect Vaisala's
operations. The most significant of these relate to currency risks,
supply-chain management and production activities, and these risks
are closely monitored and prepared for according to the company's
risk management policy.
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 39.00 at the end of the review
period. The highest share price quoted during the review period was
EUR 41.99 and the lowest EUR 29.43.
Vaisala's share capital at the end of the review period was EUR
7,660,807.86 and the total number of shares was 18,218,364.
A total of 3,723,777 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 book value of the shares owned by the company is EUR
251,898.31.
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.
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 was to 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 auditors by the Annual General Meeting.
Events outside the review period
Vaisala to supply synoptic upper-air observation network to Canada
Vaisala has won a contract with the Meteorological Service Canada
(PWGSC) for the modernization of Canada's synoptic observation
network. The estimated value of the ten-year contract is 27 million
USD. The deliveries start in October 2007.
Vantaa August 7th, 2007
Vaisala Oyj
Board of Directors
Financial indicators 1-6 1-6 4-6 4-6 1-12
2007 2006 2007 2006 2006
Number of shares at March. 31
(1000 pcs) 18 209 18 209 18 209 18 209 18 209
Number of chares at March 31
(1000 pcs),weighted average 18 209 18 125 18 209 18 209 18 168
Adjusted number of shares
(1000 pcs) 18 209 18 139 18 209 18 209 18 174
Earnings/share (EUR) 0.65 0.36 0.37 0.31 1.46
Earnings/share (EUR),fully diluted 0.65 0.36 0.37 0.31 1.46
Net cash flow from operating
activities/share (EUR) 1.05 0.68 1.96
Equity/share (EUR) 9.08 8.28 9.08 8.28 9.32
Solvency ratio 85% 86% 85% 86% 81%
Gross capital expenditure
(EUR Million) 3.4 17.4 2.0 0.9 20.4
Depreciation 4.1 6.4 2.1 2.8 10.8
Average personnel 1 095 1 065 1 109 1 079 1 069
Order book (EUR Million) 82.6 86.8 82.6 86.8 77.6
Liabilities from derivative
contracts 11.6 12.2 11.6 12.2 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)
1-6 1-6 Change 4-6 4-6 Change 1-12
2007 2006 % 2007 2006 % 2006
Net sales 100.8 92.5 9.0 50.5 49.7 1.6 220.8
Cost of production
and procurement -43.8 -44.7 -2.1 -21.9 -23.6 -7.1 -100.1
Gross profit 57.0 47.7 19.4 28.6 26.1 9.4 120.8
Other operating
income 0.0 0.1 -100.0 0.0 0.1 -101.5 0.1
Cost of sales and
marketing -21.8 -19.7 10.8 -10.4 -9.0 15.8 -42.1
Development costs -10.4 -9.5 9.7 -4.9 -4.5 8.2 -20.6
Other administrative
costs -9.6 -8.2 16.9 -4.7 -4.1 13.5 -19.6
Other operating cost 0.0 0.0 0.0 0.0 0.0
Operating profit 15.1 10.4 45.7 8.7 8.6 0.5 38.6
Financial income and
expenses 1.2 -0.9 -243.3 0.7 -0.6 -224.5 -0.5
Share of results of
associated companies 0.0 0.0 0.0 0.0 0.0
Profit before tax 16.4 9.5 71.7 9.4 8.1 15.9 38.2
Income taxes -4.6 -3.0 49.9 -2.6 -2.5 2.5 -11.6
Profit after tax 11.8 6.5 81.9 6.8 5.6 22.0 26.6
Attributable to
equity holders of
the parent 11.8 6.5 81.9 6.8 5.6 22.0 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 0.65 0.36 81.1 0.37 0.31 22.0 1.46
Diluted earnings per share 0.65 0.36 81.2 0.37 0.31 22.0 1.46
CONSOLIDATED BALANCE SHEET
(EUR million) 30.6.2007 30.6.2006 Change 31.12.2006
%
ASSETS
NON-CURRENT ASSETS
Intangible assets 19.9 21.9 -8.8 21.0
Tangible assets 33.1 34.4 -4.0 33.5
Investments in associates 0.3 0.3 -6.3 0.4
Other financial assets 0.0 0.0 -14.3 0.2
Long-term receivables 0.2 0.2 -0.5 0.1
Deferred tax assets 5.4 5.9 -8.4 5.2
CURRENT ASSETS
Inventories 18.5 17.3 6.8 17.6
Trade and other receivables 39.6 35.2 12.6 53.9
Accrued income tax receivables 0.7 1.4 -50.8 0.0
Financial assets recognized at
fair
value through profit and loss 42.0 32.7 28.6 41.2
Cash and cash equivalents 45.0 34.9 29.1 46.1
TOTAL ASSETS 204.8 184.3 11.2 219.2
SHAREHOLDERS' EQUITY AND
LIABILITIES
Equity attributable to equity
holders of the parent
Share capital 7.7 7.7 0.0 7.7
Share issue 0.0 0.0 0.0
Share premium reserve 16.6 16.6 0.0 16.6
Reserve fund 0.1 0.1 -10.7 0.1
Translation differences -2.3 -0.5 382.8 -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 11.8 6.5 81.9 26.6
Total equity 165.4 150.8 9.7 169.8
Long-term liabilities
Retirement benefit obligations 0.3 0.7 -53.0 0.3
Interest-bearing liabilities 0.2 0.4 -57.7 0.3
Provisions 0.0 0.7 -94.2 0.0
Deferred tax liabilities 0.3 0.4 -23.9 0.4
Current liabilities
Current portion of long-term
borrowings 0.1 0.4 -62.3 0.3
Current interest-bearing
liabilities 0.3 0.2 54.3 0.3
Advances received 10.3 8.3 24.4 9.6
Accrued income tax payables 3.9 0.9 311.8 2.6
Trade and other payables 24.1 21.6 11.4 35.6
TOTAL LIABILITIES 204.8 184.3 11.2 219.2
CONSOLIDATED STATEMENT OF CHANGES IN
SHAREHOLDERS' EQUITY
June 30, 2007 (EUR million)
Trans-
Share Share lation Retain-ed
capi- Share Premium Reserve Own differ- earn- Total
tal issue reserve Fund shares ences ings equity
Balance at
December
31,
2006 7.7 0.0 16.6 0.1 -0.3 -1.6 147.3 169.8
Translation
differences 0.0 -0.7 -0.7
Net profit
for the
period 11.8 11.8
Dividend
paid -15.5 -15.5
Stock
options
exercised 0.0
Own shares
acquired 0.0
Own shares
transferred 0.0
Balance at
June 30,
2007 7.7 0.0 16.6 0.1 -0.3 -2.3 143.6 165.4
Trans- Retain-
Share Share lation ed
capi- Share Premium Reserve Own differ- earn- Total
tal issue reserve Fund shares ences ings equity
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 -2.4 -2.4
Net profit
for
the period 6.5 6.5
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
June 30.
2006 7.7 0.0 16.6 0.1 -0.3 -0.5 127.2 150.8
CONSOLIDATED CASH FLOW STATEMENT
(EUR million)
1-6 1-6 Change 1-12
2007 2006 % 2006
Cash flows from operating activities
Cash receipts from customers 115.7 108.0 7.1 220.3
Other income from business operations 0.0 0.1 -99.3 0.0
Cash paid to suppliers and employees -93.4 -90.2 3.6 -173.7
Interest received 1.7 1.2 43.1 2.2
Interest paid -0.1 0.0 508.3 -0.1
Other financial items, net 0.0 -2.0 -97.6 -3.3
Dividend received from business
operations 0.0 0.0 -100.0 0.0
Direct tax paid -4.8 -4.7 2.2 -9.7
Cash flow from business operations (A) 19.0 12.4 53.0 35.7
Cash flow from investing activities
Investments in tangible and intangible
assets -3.5 -4.2 -17.6 -7.2
Acquisition of subsidiary, net of cash
acquired 0.0 -15.5 -100.0 -15.7
Proceeds from sale of fixed assets 0.0 0.0 -100.0 0.1
Loans granted 0.0 0.0 -100.0 0.0
Repayments on loan receivables 0.0 0.0 0.0
Other investments 0.1 0.0 -17 687.5 -0.1
Cash flow from investing activities (B) -3.3 -19.7 -83.2 -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 -0.2 -0.2 0.0 -0.5
Dividend paid and other distribution
of profit -15.4 -13.4 15.0 -13.4
Cash flow from financing activities (C) -15.6 -7.5 107.9 -7.8
Change in liquid funds (A+B+C)
increase (+) / decrease (-) 0.1 -14.7 -100.8 5.0
Liquid funds at beginning of period 87.3 81.4 7.3 81.4
Foreign exchange effect on cash -0.4 0.8 -151.7 0.9
Net increase in cash and cash
equivalents 0.1 -14.7 -100.8 5.0
Liquid funds at end of period 87.0 67.5 28.9 87.3
Segment Report
Business segments
Vaisala
Measure- Vaisala Other
ment Instru- Vaisala Opera- Elimina-
1-6/2007 Systems ments Solutions tions tions Group
Net sales to
external customers 40.1 34.5 26.2 0.0 0.0 100.8
Intragroup sales 0.0 3.7 0.2 0.0 -3.9 0.0
Net sales 40.1 38.2 26.4 0.0 -3.9 100.8
Operating profit 7.2 10.5 -0.7 -1.8 0.0 15.1
Depreciation 1.3 0.9 0.2 1.6 0 4.1
Restructuring
expenses 0.0 0.0 0.0 0.0 0 0.0
Segment Report
Business segments
Vaisala
Measure- Vaisala Other
ment Instru- Vaisala Opera- Elimina-
1-6/2006 Systems ments Solutions tions tions Group
M€
Net sales to
external customers 38.2 30.0 24.2 0.0 0.0 92.5
Intragroup sales 0.0 4.5 0.2 0.0 -4.7 0.0
Net sales 38.2 34.6 24.4 0.0 -4.7 92.5
Operating profit 4.0 9.1 -1.2 -1.5 0.0 10.4
Depreciation 3.3 1.0 0.4 1.7 0 6.4
Restructuring
expenses 0.4 0.0 0.0 0.0 0 0.4
Segment Report
Business segments
Vaisala
Measure- Vaisala Other
ment Instru- Vaisala Opera- Elimina-
4-6/2007 Systems ments Solutions tions tions Group
Net sales to
external customers 20.7 17.3 12.5 0.0 0.0 50.5
Intragroup sales 0.0 1.9 0.1 0.0 -2.0 0.0
Net sales 20.7 19.1 12.6 0.0 -2.0 50.5
Operating profit 4.9 5.4 -0.7 -1.0 0.0 8.7
Depreciation 0.7 0.5 0.1 0.8 0 2.1
Restructuring
expenses 0.0 0.0 0.0 0.0 0 0.0
Segment Report
Business segments
Vaisala
Measure- Vaisala Other
ment Instru- Vaisala Opera- Elimina-
4-6/2006 Systems ments Solutions tions tions Group
M€
Net sales to
external customers 20.9 15.7 13.0 0.0 0.0 49.7
Intragroup sales 0.0 2.6 0.1 0.0 -2.7 0.0
Net sales 20.9 18.4 13.1 0.0 -2.7 49.7
Operating profit 3.5 5.8 0.2 -0.9 0.0 8.6
Depreciation 1.4 0.4 0.2 0.8 0 2.8
Restructuring
expenses -0.5 0.0 0.0 0.0 0 -0.5
Vaisala
Measure- Vaisala Other
ment Instru- Vaisala Opera- Elimina-
1-12/2006 Systems ments Solutions tions tions 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
Calculation of financial indicators
Shareholders' equity plus minority
interest
Solvency ratio, (%) = --------------------------------------- x 100
Balance sheet total less advance payments
Profit before taxes less taxes
+/- minority interest
Earnings / share = ---------------------------------------
Average number of shares, adjusted
Cash flow from business operations
Cash flow from
business = ---------------------------------------
operations / share Number or shares at balance sheet date
Shareholders' equity
Equity / share = ---------------------------------------
Number of shares at balance sheet date,
adjusted
Dividend
Dividend / share = ----------------------------------------
Number of shares at balance sheet date,
adjusted
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