Vaisala Corporation Stock Exchange Release August 2, 2012 at 9.00 a.m.
April-June net sales increased by 22%.Operating result EUR 11.4 million. Profit guidance upgraded.
April-June highlights
- Orders received EUR 68.6 (54.8) million, increase 25%
- Order book EUR 124.5 (120.0) million, increase 4%
- Net sales EUR 75.3 (61.9) million, increase 22%
- Operating result EUR 11.4 (3.2) million
- Earnings per share EUR 0.51 (0.10)
- Cash flow from business operations EUR 13.0 (-1.5) million
- Liquid funds EUR 48.4 (29.8) million
January-June highlights
- Orders received EUR 124.3 (111.8) million, increase 11%
- Net sales EUR 134.1 (120.8) million, increase 11%
- Operating result EUR 12.4 (2.3) million
- Earnings per share EUR 0.50 (-0.03)
- Cash flow from business operations EUR 17.6 (12.7) million
Comments on April-June
In April-June 2012, net sales were EUR 75.3 million and showed an increase of 22% from previous year. Weather Business Area net sales were EUR 56.8 million and increased by 26% year-on-year. Controlled Environment Business Area net sales were EUR 18.5 million and increased by 9% year-on-year.
In April-June 2012, net sales in EMEA increased by 48%, in Americas by 7% and in APAC by 16% year-on-year.
Orders received were EUR 68.6 million in April-June 2012 and increased by 25% year-on-year. The order book remains strong and it was EUR 124.5 million, 4% higher than at the end of June 2011.
The operating result for April-June 2012 was EUR 11.4 million and increased by EUR 8.2 million or by 261% from previous year's EUR 3.2 million. Weather Business Area operating result was EUR 9.9 million and increased by 355% compared to EUR 2.2 million in previous year, due to higher sales as well as favorable product mix. Controlled Environment Business Area operating result was EUR 2.0 million, at the same level as in previous year.
Key Figures (unaudited)
| 4-6 | 4-6 | Change | 1-6 | 1-6 | Change | 1-12 | |
| 2012 | 2011 | % | 2012 | 2011 | % | 2011 | |
| MEUR | MEUR | MEUR | MEUR | MEUR | |||
| Net sales, Group | 75.3 | 61.9 | 22 | 134.1 | 120.8 | 11 | 273.6 |
| Weather | 56.8 | 44.9 | 26 | 97.8 | 85.3 | 15 | 201.8 |
| Controlled Environment | 18.5 | 16.9 | 9 | 36.2 | 35.5 | 2 | 71.7 |
| Orders received | 68.6 | 54.8 | 25 | 124.3 | 111.8 | 11 | 278.8 |
| Order book | 124.5 | 120.0 | 4 | 124.5 | 120.0 | 4 | 134.3 |
| Operating result, Group | 11.4 | 3.2 | 261 | 12.4 | 2.3 | 446 | 16.1 |
| Weather | 9.9 | 2.2 | 355 | 7.7 | -2.6 | 399 | 5.9 |
| Controlled Environment | 2.0 | 2.0 | 0 | 5.3 | 6.0 | -12 | 10.5 |
| Eliminations and other | -0.4 | -1.1 | 62 | -0.6 | -1.2 | 48 | -0.3 |
| Result before taxes | 12.6 | 2.6 | 380 | 12.6 | 0.0 | 52,491 | 16.1 |
| Net result for review period | 9.2 | 1.8 | 412 | 9.1 | -0.5 | 1,852 | 10.4 |
| % of Net sales | |||||||
| Operating result, Group | 15.1% | 5.1% | 9.2% | 1.9% | 5.9% | ||
| Result before taxes | 16.7% | 4.2% | 9.4% | 0.0% | 5.9% | ||
| Net result for review period | 12.2% | 2.9% | 6.8% | -0.4% | 3.8% | ||
| Earnings per share | 0.51 | 0.10 | 414 | 0.50 | -0.03 | 1,855 | 0.57 |
| Return on equity | 10.0% | -0.6% | 10.0% | -0.6% | 5.7% | ||
| Cash flow from business operations | 13.0 | -1.5 | 986 | 17.6 | 12.7 | 38 | 37.6 |
| Liquid funds at end of period | 48.4 | 29.8 | 63 | 48.4 | 29.8 | 63 | 45.5 |
President and CEO Kjell Forsén on Vaisala's result:
"Vaisala's second quarter was a strong one. Of our businesses, especially Weather Business Area performed well and of the regions, EMEA displayed the highest growth. This is quite an achievement considering the market sentiment and a clear sign that our long term development programs and renewed strategy start to pay off as planned.
Sales growth for the second quarter was 22% and the operating result improved from EUR 3.2 million to EUR 11.4 million. Orders received grew by 25%, and the order book increased by 4%. Considering the global spread of our business and the varying conditions where the projects are carried out, these figures would not have been possible without a very well working end-to-end delivery organization. I want to thank all our people who made this positive development possible.
Vaisala's Weather Business Area was favored not only by improved execution but also by favorable product mix during the quarter. Sales growth was 26%, and the operating result improved from EUR 2.2 million to EUR 9.9 million. Orders received increased by 31%.
Our Controlled Environment Business Area benefited from changes in exchange rates, and its net sales grew by 9%, whereas the orders received increased by 11%. The operating result remained at EUR 2.0 million. Our Life Science Business spearheading our growth ambitions continued to do well.
We are now upgrading the full year profit guidance. However, increasing uncertainty in the market is affecting both our governmental and industrial customers."
Market outlook
Uncertainty in the global economy and financial crises are 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 materially unchanged in 2012.
Financial guidance
Vaisala upgrades its profit guidance for 2012.
Vaisala expects its net sales in 2012 to stay at the same level as in the preceding year and the operating result is expected to improve. Net sales in 2011 were EUR 273.6 million and operating result was EUR 16.1 million.
Achieving the updated guidance is subject to sales mix, project progress and completions, fluctuation in foreign exchange rates as well as the development of the world economy and financial markets.
Vaisala's long-term business outlook remains unchanged.
Previous financial guidance
Vaisala expects its net sales in 2012 to stay at the same level as in the preceding year. The operating result is expected to improve moderately. Net sales in 2011 were EUR 273.6 million and operating result was EUR 16.1 million.
Vaisala's long-term business outlook remains unchanged.
Disclosure procedure
This is a summary of Vaisala's January-June 2012 Interim Report. The complete report is attached as a .pdf file to this release and is also available at Vaisala website at www.vaisala.com/investors. (Re. Standard 5.2b published by the Finnish Financial Supervision Authority.)
Briefing and webcast
Briefing for analysts and media will be held in Hotel Kämp's Paavo Nurmi meeting room (Pohjoisesplanadi, Helsinki) starting at 12.00 noon. Please register by email to sanna.nystrom@vaisala.com.
The presentation of Kjell Forsén, President and CEO of Vaisala, will be audiocasted live at www.vaisala.com/investors starting at 12:00 noon (GMT +3). A recording will be published at the same address by 2:00 p.m. (GMT +3) on the same day.
Further information:
Kaarina Muurinen, CFO
Tel +358 9 8949 2215, mobile +358 40 577 5066
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 chosen weather-related and industrial markets. Headquartered in Finland, Vaisala employs approximately 1400 professionals worldwide and is listed on the NASDAQ OMX Helsinki stock exchange. www.vaisala.com www.twitter.com/VaisalaGroup
Distribution:
NASDAQ OMX Helsinki
Key media
www.vaisala.com
