2016-04-26 13:00:39 CEST
2016-04-26 13:00:39 CEST
SÄÄNNELTY TIETO
Vaisala - Interim report (Q1 and Q3)
Vaisala Corporation Interim Report January-March 2016
Vaisala Corporation
Interim Report
April 26, 2016 at 2.00 p.m. (EET)
Vaisala Corporation Interim Report January-March 2016
In the first quarter 2016, net sales increased by 17% to EUR 68.7 million and
operating result improved by EUR 6.6 million to EUR -1.0 (-7.7) million. Vaisala
updates its operating result estimate to include restructuring expenses of EUR
3 million.
January-March 2016 highlights
* Orders received EUR 64.8 (68.9) million, decrease 6%
* Order book EUR 121.9 (137.5) million, decrease 11%
* Net sales EUR 68.7 (58.7) million, increase 17%
* Gross margin 51.0% (44.8%)
* Operating result EUR -1.0 (-7.7) million
* Earnings per share EUR -0.12 (-0.15)
* Cash flow from operating activities EUR -0.6 (6.3) million
* Cash and cash equivalents EUR 57.0 (54.7) million, increase 4%
* Vaisala updates its business outlook for 2016 to include restructuring
expenses in the operating result estimate. Vaisala continues to estimate its
full year 2016 net sales to be in the range of EUR 305-335 million. Vaisala
estimates its operating result (EBIT) to be in the range of EUR 25-35
million. Previous business outlook from February 10, 2016: Vaisala estimates
its full year 2016 net sales to be in the range of EUR 305-335 million and
the operating result (EBIT) excluding non-recurring items in the range of
EUR 28-38 million.
Vaisala's President and CEO Kjell Forsén comments on first quarter 2016
"Vaisala's first quarter net sales were all-time high for the period. Net sales
grew to EUR 68.7 million which corresponds to 17% increase compared to previous
year. Net sales growth was strongest in Americas. This is an outstanding
achievement since the first quarter of the year is typically slow for Vaisala.
Weather Business Area's net sales growth was spectacular 20% and net sales
reached EUR 44.7 million following especially high product deliveries.
Controlled Environment Business Area's net sales grew in all regions and was
strongest in APAC. The year-on-year growth was 12% bringing Controlled
Environment Business Area's net sales to EUR 24.0 million.
Orders received, however, had a slow start in the first quarter and decreased by
6% totaling EUR 64.8 million. The decline was due to Weather Business Area's
order intake decreasing by 10%, whereas Controlled Environment Business Area's
orders received grew by 1%. Order book declined by 11% to EUR 121.9 million as a
result of excellent net sales and slow order intake.
Vaisala's first quarter operating result was EUR -1.0 million. However, this is
a significant improvement of EUR 6.6 million from previous year especially when
this includes EUR 3.1 million expenses related to the restructuring of
Transportation business unit. The main drivers for operating result increase
were higher sales volumes and related improvement in scale economies, and well
evolving product profitability.
Vaisala's market outlook is generally stable. However, in many emerging
countries the situation remains uncertain and this is expected to impact
adversely on governmental finances and delay public customers' decision making.
Business opportunities in oil and gas related businesses are expected to remain
weak throughout the year due to low crude oil prices. In renewable energy market
outlook is positive. Also market outlook for industrial measurement solutions is
solid.
Vaisala updates its business outlook for 2016 and includes restructuring
expenses in the operating result estimate. Vaisala continues to estimate its
full year 2016 net sales to be in the range of EUR 305-335 million. Vaisala
estimates its operating result (EBIT) to be in the range of EUR 25-35 million."
Key Figures
1-3/2016 1-3/2015 1-12/2015
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Orders received, EUR million 64.8 68.9 320.0
Order book, EUR million 121.9 137.5 129.2
Net sales, EUR million 68.7 58.7 318.5
Gross profit, EUR million 35.0 26.3 162.8
Gross margin, % 51.0 44.8 51.1
Operating expenses, EUR million 33.1 32.2 131.9
Operating result, EUR million -1.0 -7.7 29.6
Operating result, % -1.5 -13.1 9.3
Profit (loss) before taxes, EUR million -2.7 -3.7 33.0
Profit (loss) for the period, EUR million -2.1 -2.8 27.5
Earnings per share, EUR -0.12 -0.15 1.52
Return on equity, % -4.7 -6.9 15.7
Capital expenditure, EUR million 1.1 0.9 8.3
Depreciation, EUR million 3.7 3.9 15.1
Cash flow from operating activities, EUR million -0.6 6.3 38.8
Cash and cash equivalents, EUR million 57.0 54.7 59.2
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Market situation in January-March 2016
In the first quarter 2016, global economic growth continued to decelerate
slightly. Low commodity prices have affected governmental finances of many
emerging countries and weakened demand from public customers. In developed
economies market environment remained stable.
In EMEA difficult economic conditions in particular in CIS countries delayed
customer decision making for new business in weather observation market,
especially in weather radar and oil and gas related maritime businesses.
Vaisala's deliveries were nevertheless stable in the first quarter. In Middle
East and Africa weather observation market deliveries increased and customer
activity was stable for new orders. Industrial measurement solution market
conditions remained favorable in EMEA.
In Americas weather observation market conditions were two-fold in the first
quarter 2016. In North America economic growth and governmental funding remained
stable and Vaisala's deliveries were strong due to good inflow of new orders in
2015. Weather observation market activity for new orders was not growing, but at
the same time renewable energy markets in North America were active. On the
other hand, in Latin America weather observation market environment was weak in
particular due to the challenging situation in the largest economy Brazil.
Demand for industrial measurement solutions in Americas was stable.
In APAC demand for Vaisala's weather observation and industrial measurement
solutions was not affected by economic uncertainty in China. Weather observation
market deliveries were good and customer activity for orders remained solid.
Favorable market conditions for industrial measurement solutions continued in
Japan, and demand for Vaisala's offering developed well also in China. In rest
of APAC market environment for industrial measurement solutions was stable.
January-March 2016 performance
Orders received
EUR million 1-3/2016 1-3/2015 Change, % 1-12/2015
-------------------------------------------------------------
Weather 40.9 45.3 -10 225.6
Controlled Environment 23.9 23.6 1 94.4
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Total 64.8 68.9 -6 320.0
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In the first quarter 2016, Vaisala's orders received were EUR 64.8 (68.9)
million and decreased by 6% compared to previous year. The decrease came from
EMEA and Americas.
In the first quarter 2016, Weather Business Area's orders received were EUR
40.9 (45.3) million and decreased by 10% compared to previous year. The decrease
came from Meteorology Infrastructure and Transportation business units. The EUR
20 million contract with National Hydro-Meteorological Service of Vietnam is not
included in orders received for the first quarter as the order will be added in
order book when the customer has given the final approval for the technical
design.
In the first quarter 2016, Controlled Environment Business Area's orders
received were EUR 23.9 (23.6) million and increased by 1% compared to previous
year. The increase came from APAC and EMEA.
Order book
EUR million 1-3/2016 1-3/2015 Change, % 2015
---------------------------------------------------------
Weather 115.2 129.7 -11 122.2
Controlled Environment 6.8 7.8 -13 7.0
---------------------------------------------------------
Total 121.9 137.5 -11 129.2
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At the end of March 2016, Vaisala's order book was EUR 121.9 (137.5) million and
decreased by 11%. The order book decreased in all geographic areas. Of the order
book EUR 83.6 (88.4) million will be delivered in 2016.
At the end of March 2016, Weather Business Area's order book was EUR 115.2
(129.7) million and decreased by 11% compared to previous year. Order book
decreased in Meteorology Infrastructure business unit. Of the order book EUR
77.1 (80.8) million will be delivered in 2016.
At the end of March 2016, Controlled Environment Business Area's order book was
EUR 6.8 (7.8) million and decreased by 13% compared to previous year. Order book
decreased in Americas and EMEA. Of the order book EUR 6.4 (7.6) million will be
delivered in 2016.
Net sales by business area
EUR million 1-3/2016 1-3/2015 Change, % 2015
---------------------------------------------------------
Weather 44.7 37.2 20 225.5
Products 25.8 18.9 36 116.2
Projects 9.9 9.5 4 71.0
Services 8.9 8.7 2 38.3
Controlled Environment 24.0 21.5 12 93.0
Products 21.3 19.3 10 83.5
Services 2.7 2.2 25 9.5
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Total 68.7 58.7 17 318.5
---------------------------------------------------------
Net sales by region
EUR million 1-3/2016 1-3/2015 Change, % 2015
---------------------------------------------------------
EMEA 21.6 19.4 11 105.1
Americas 29.5 21.4 38 132.0
APAC 17.6 17.8 -1 81.3
---------------------------------------------------------
Total 68.7 58.7 17 318.5
---------------------------------------------------------
In the first quarter 2016, Vaisala's net sales were EUR 68.7 (58.7) million and
increased by 17% compared to previous year. Vaisala's net sales in EMEA were EUR
21.6 (19.4) million and increased by 11%, in the Americas EUR 29.5 (21.4)
million and increased by 38% and in APAC EUR 17.6 (17.8) million and decreased
by 1%. At comparable exchange rates net sales would have been EUR 67.2 (58.7)
million and increase would have been EUR 8.5 million or 15% from previous year.
The positive exchange rate effect was EUR 1.5 million, which was mainly caused
by USD exchange rate appreciation against EUR.
In the first quarter 2016, Weather Business Area's net sales were EUR 44.7
(37.2) million and increased by 20% compared to previous year. The increase came
from all business units, mainly from Meteorology Infrastructure. Especially
product business increased. At comparable exchange rates the net sales would
have been EUR 43.9 (37.2) million and increase would have been EUR 6.7 million
or 18% from previous year. The positive exchange rate effect was EUR 0.8
million, which was mainly caused by USD appreciation against EUR.
In the first quarter 2016, Controlled Environment Business Area's net sales were
EUR 24.0 (21.5) million and increased by 12% compared to previous year. The
growth came from all regions, mainly from APAC. At comparable exchange rates the
net sales would have been EUR 23.3 (21.5) million and increase would have been
EUR 1.8 million or 9% from previous year. The positive exchange rate effect was
EUR 0.7 million, which was mainly caused by USD and JPY appreciation against
EUR.
Operations outside Finland accounted for 98% (98%) of net sales.
Gross margin and operating result
1-3/2016 1-3/2015 2015
------------------------------------------------------
Gross margin, % 51.0% 44.8% 51.1%
Weather 45.8% 37.4% 47.4%
Controlled Environment 60.8% 57.9% 60.4
Operating result, EUR million -1.0 -7.7 29.6
Weather -1.9 -8.7 15.2
Controlled Environment 4.9 3.3 18.3
Other -4.1 -2.3 -4.0
------------------------------------------------------
In the first quarter 2016, Vaisala's operating result was EUR -1.0 (-7.7)
million and improved by EUR 6.6 million compared to previous year. Operating
result increase was due to higher net sales and gross margin in both Weather and
Controlled Environment Business Areas. Gross margin was 51.0% (44.8%) and the
increase was mainly due to higher sales volumes and related improvement in scale
economies, higher product profitability in Weather Business Area as well as
improved profitability in calibration and repair services. Operating expenses
were EUR 33.1 (32.2) million and increased by 3%. The increase came mainly from
higher research and development expenses as well as USD based expenses growing
due to USD appreciation against EUR. In addition, operating result was decreased
by EUR 3.1 million expenses related to the restructuring of Transportation
business unit.
In the first quarter 2016, Weather Business Area's operating result was EUR -1.9
(-8.7) million and improved by EUR 6.8 million compared to previous year.
Operating result increase was mainly due to higher net sales and gross margin.
Gross margin was 45.8% (37.4%) and the increase was mainly due to higher sales
volumes and related improvement in scale economies as well as improved product
profitability. Operating expenses were EUR 22.4 (22.6) million and decreased by
1%. The decrease came mainly from lower administration expenses.
In the first quarter 2016, Controlled Environment Business Area's operating
result was EUR 4.9 (3.3) million and improved by EUR 1.6 million compared to
previous year. Operating result increase was due to higher net sales and gross
margin. Gross margin was 60.8% (57.9%) and the increase was mainly due to
improved profitability in calibration and repair services, impact of USD and JPY
appreciation against EUR as well as higher sales volumes and related improvement
in scale economies. Operating expenses were EUR 9.6 (9.1) million and increased
by 6%. The increase came mainly from higher research and development expenses.
In the first quarter 2016, financial income and expenses were EUR -1.7 (4.0)
million. The decrease is mainly due to foreign exchange losses related to
valuation of USD denominated receivables.
In the first quarter 2016, profit/loss before taxes was EUR -2.7 (-3.7) million.
Income taxes were EUR
0.6 (0.9) million. Net result was EUR -2.1 (-2.8) million.
In the first quarter 2016, earnings per share were EUR -0.12 (-0.15).
Statement of financial position and cash flow
Vaisala's financial position remained strong at the end of the March 2016. Cash
and cash equivalents amounted to EUR 57.0 (54.7) million at the end of March
2016 and Vaisala did not have any material interest bearing liabilities.
The statement of financial position total was EUR 259.7 (255.5) million.
Compared to the end of March 2015 assets increased mainly due to higher accounts
receivable following net sales growth. Liabilities increased as retained
earnings increased by EUR 28.6 million. Trade and other payables decreased by
EUR 19.2 million mainly because dividend for 2016 was decided in April 2016 and
is therefore not recognized as a liability in March 31, 2016.
In January-March 2016, Vaisala's cash flow from operating activities was EUR
-0.6 (6.3) million despite the considerable profitability improvement year-on-
year. The weakening of cash flow compared to the previous year was mainly due to
working capital as trade receivables increased following net sales growth.
Capital expenditure and divestments
In January-March 2016, gross capital expenditure totaled EUR 1.1 (0.9) million.
Capital expenditure was mainly related to investments in machinery and equipment
to develop and maintain Vaisala's production and service operations.
Depreciation and amortization was EUR 3.7 (3.9) million.
Research and development
In January-March 2016, research and development expenses totaled EUR 9.5 (8.5)
million, representing 13.9% (14.5%) of net sales.
R&D by business area
EUR million 1-3/2016 1-3/2015 Change, % 2015
--------------------------------------------------------
Weather 6.7 6.3 7 26.7
Controlled Environment 2.8 2.2 28 9.4
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Total 9.5 8.5 12 36.1
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In January-March 2016, Weather Business Area R&D expenses were 15.1% (17.0%) of
net sales. Controlled Environment Business Area R&D expenses were 11.6% (10.1%)
of net sales.
Personnel
The average number of personnel employed in Vaisala during January-March 2016
was 1,582 (1,608). The number of employees at the end of March 2016 was 1,579
(1,594). At the end of 2015, the number of employees was 1,588.
At the end of March 2016, 41% (43%) of employees were based outside Finland.
Vaisala to exit certain Transportation products and field services
Vaisala made the decision on February 10, 2016 to reshape its Transportation
business unit within Weather Business Area to simplify structure and improve
profitability. Going forward, Transportation business unit will focus on product
leadership, delivery capability and expansion of information services in order
to drive growth, profitability and customer focus.
Transportation business unit will exit the field service business in all
countries except the United Kingdom as Vaisala's field service offering is no
longer competitive in those countries due to increasing price pressure.
Transportation business unit will also exit the United States Automated Weather
Observing System (U.S. AWOS) business. The U.S. AWOS is based on unique
technology designed solely for the U.S. Federal Aviation Administration (FAA)
regulated small airport markets and it differs from Vaisala's common technology
platform.
Transportation divestment process is currently ongoing and deal closure is
expected to take place within 2016. The changes are expected to lead to a
reduction of approximately 60 employees mainly in the United States. During the
first quarter 2016, the reduction of employees was 7. Estimated annual cost
savings are EUR 6 million and they are expected to contribute to 2017
profitability. The related restructuring expenses are reported in this first
quarter 2016 Interim Report and are EUR 3.1 million.
Near-term risks and uncertainties
Uncertainties in world economic and political situation as well as changes in
customer behavior may cause demand slowdown or delays in customer projects.
Especially market situation in China, Brazil and continuing conflicts in Middle
East and Africa may cause interruptions in business. Also increasing
competition, changes in price levels and exchange rates may impact Vaisala's net
sales and profitability.
Vaisala's capability to successfully complete investments, acquisitions,
divestments and restructurings on a timely basis and to achieve related
financial and operational targets represent a risk which may impact net sales
and profitability.
The ongoing business expansion in renewable energy market may be delayed due to
long authorization and approval processes, evolving business models and
customers' postponing decision making. Delays in new product ramp-ups and market
acceptance of new offering may postpone the realization of Vaisala's growth
plans.
Suppliers' and subcontractors' delivery capability or operating environment as
well as product quality may impact Vaisala's net sales and profitability. Cyber
risk and availability of IT systems may impact operations, delivery of
information services or Internet-based services or cause financial loss.
Further information about risk management and risks are available on the company
website at www.vaisala.com/investors, Corporate Governance and
www.vaisala.com/investors, Vaisala as an Investment.
Decisions by Vaisala Corporation's Annual General Meeting
Vaisala Corporation's Annual General Meeting was held on April 5, 2016. The
meeting approved the financial statements and discharged the members of the
Board of Directors and the President and CEO from liability for the financial
period January 1-December 31, 2015.
Dividend
The Annual General Meeting decided a dividend of EUR 0.95 per share,
corresponding to the total of EUR 17.1 million. The record date for the dividend
payment was April 7, 2016 and the payment date was April 14, 2016.
Board of Directors
The Annual General Meeting confirmed that the number of Board members is seven.
Petra Lundström, Yrjö Neuvo, Mikko Niinivaara, Pertti Torstila, Raimo Voipio and
Ville Voipio will continue as members of the Board of Directors. Kaarina
Ståhlberg was elected as a new member of the Board of Directors.
The Annual General Meeting confirmed that that the annual fee payable to the
Chairman of the Board of Directors is EUR 45,000 and each Board member EUR
35,000 per year. Approximately 40 percent of the annual remuneration will be
paid in Vaisala Corporation's A-shares acquired from the market and the rest in
cash. In addition, the Annual General Meeting confirmed that the compensation
for the Chairman of the Audit Committee would be EUR 1,500 per attended meeting
and EUR 1,000 for each member of the Audit Committee and Chairman and each
member of the Remuneration and HR Committee and any other committee established
by the Board of Directors for a term until the close of the Annual General
Meeting in 2017. The meeting compensation fees are paid in cash.
Auditor
The Annual General Meeting re-elected Deloitte & Touche Oy as the auditor of the
Company and APA Merja Itäniemi will act as the auditor with the principal
responsibility. The Auditors are reimbursed according to invoice presented to
the company.
Authorization for the directed repurchase of own A-shares
The Annual General Meeting authorized the Board of Directors to decide on the
directed repurchase of a maximum of 200,000 of the Company's own A-shares in one
or more instalments with funds belonging to the Company's unrestricted equity.
The authorization is valid until the closing of the next Annual General Meeting,
however, no longer than October 5, 2017.
Authorization on the issuance of the Company's own A-shares
The Annual General Meeting authorized the Board of Directors to decide on the
issuance of a maximum of 391,550 Company's own A-shares. The issuance of own
shares may be carried out in deviation from the shareholders' pre-emptive rights
(directed issue). The subscription price of the shares can instead of cash also
be paid in full or in part as contribution in kind. The authorization is valid
until April 5, 2021.
The organizing meeting of the Board of Directors
At its organizing meeting held after the Annual General Meeting the Board
elected Raimo Voipio to continue as the Chairman of the Board of Directors and
Yrjö Neuvo to continue as the Vice Chairman.
The composition of the Board committees was decided to be as follows:
Kaarina Ståhlberg was elected as the Chairman and Petra Lundström and Mikko
Niinivaara as members of the Audit Committee. The Chairman and all members of
the Audit Committee are independent both of the Company and of significant
shareholders.
Raimo Voipio was elected as the Chairman and Yrjö Neuvo and Mikko Niinivaara as
members of the Remuneration and HR Committee. Raimo Voipio is independent of the
Company. Yrjö Neuvo and Mikko Niinivaara are independent both of the Company and
of significant shareholders.
Vaisala's shares and shareholders
Vaisala's share capital totaled EUR 7,660,808 on March 31, 2016. On March
31, 2016, Vaisala had 18,218,364 shares, of which 3,389,351 are series K shares
and 14,829,013 are series A shares. The K shares and A shares are differentiated
by the fact that each K share entitles its owner to 20 votes at a General
Meeting of Shareholders while each A share entitles its owner to 1 vote. The A
shares represent 81.4% of the total number of shares and 17.9% of the total
votes. The K shares represent 18.6% of the total number of shares and 82.1% of
the total votes.
Trading in shares on the Nasdaq Helsinki Ltd
In January-March 2016, a total of 545,854 (675,650) Vaisala shares with a value
totaling EUR 13.0 (16.4) million were traded on the Nasdaq Helsinki Ltd. The
closing price of the Vaisala Corporation share on the Nasdaq Helsinki Ltd stock
exchange in March 2016 was EUR 24.06 (26.10). Shares registered a high of EUR
25.00 (27.02) and a low of EUR 21.81 (21.55).
The market value of Vaisala's A shares on March 31, 2016 was EUR 352.2 (387.0)
million, excluding the Company's treasury shares. Valuing the K shares - which
are not traded on the stock market - at the rate of the A share's closing price
on the last day of March, the total market value of all the A and K shares
together was EUR 433.7 (474.7) million, excluding the Company's treasury shares.
At the end of March 2016, the Company held a total of 191,550 Vaisala A shares,
which represented 1.3% of all A-shares in the Company and 1.1% of all shares in
the Company.
At the end of March, 2016 Vaisala Corporation had 7,538 (7,307) registered
shareholders. Ownership outside of Finland and nominee registrations represented
14.81% (17.80%) of the company's shares. Households owned 41.11% (45.57%),
private companies 14.02% (12.90%), financial and insurance institutions 12.11%
(9.98%), non-profit organizations 11.86% (8.12%) and public sector organizations
owned 6.07% (5.60%).
More information about Vaisala's share and shareholders are presented on the
website, www.vaisala.com/investors.
Vaisala's dividend policy
Vaisala's Board of Directors decided on February 10, 2016 on Vaisala's dividend
policy. According to the policy, Vaisala aims to pay a stable dividend which
will increase in line with net profit development. Vaisala's goal is to maintain
high solvency and to take future investment plans into account.
Vaisala applied this dividend policy for the first time to the dividend
distributed on April 14, 2016.
Market outlook 2016
Even though global economic growth has recently slightly decelerated, market
outlook for Vaisala is generally stable. However, in many emerging countries
situation remains uncertain and this is expected to impact adversely on
governmental finances and delay public customers' decision making. Business
opportunities in oil and gas related businesses are expected to remain weak
throughout the year due to low crude oil prices. In renewable energy market
outlook is positive. Also market outlook for industrial measurement solutions is
solid.
In EMEA outlook for weather observation solutions is stable. However, economic
challenges due to strong dependency on crude oil continue to slow down
customers' decision making in CIS countries. Demand for industrial measurement
solutions is expected to remain solid.
In North America demand for weather observation solutions is expected to
decrease slightly from 2015. Vaisala's deliveries are estimated to be on similar
level as in 2015, supported by strong inflow of new orders from renewable energy
and transportation markets in late 2015. Weather observation market is expected
to remain weak in Latin America. Demand for industrial measurement solutions is
expected to remain on previous year's level in Americas.
In APAC demand for weather observation solutions is expected to increase from
2015. In China demand is expected to be stable. In rest of APAC demand is
expected to grow from 2015 especially in transportation and renewable energy
businesses. Market conditions for industrial measurement solutions are also
expected to remain solid.
Business outlook for 2016
Vaisala updates its business outlook for 2016 and includes restructuring
expenses in the operating result estimate. Vaisala continues to estimate its
full year 2016 net sales to be in the range of EUR 305-335 million. Vaisala
estimates its operating result (EBIT) to be in the range of EUR 25-35 million.
Previous business outlook from February 10, 2016
Vaisala estimates its full year 2016 net sales to be in the range of EUR
305-335 million and the operating result (EBIT) excluding non-recurring items in
the range of EUR 28-38 million.
Vantaa, April 26, 2016
Vaisala Corporation
Board of Directors
The forward-looking statements in this release are based on the current
expectations, known factors, decisions and plans of Vaisala's management.
Although the management believes that the expectations reflected in these
forward-looking statements are reasonable, there is no assurance that these
expectations would prove to be correct. Therefore, the results could differ
materially from those implied in the forward-looking statements, due to for
example changes in the economic, market and competitive environments, regulatory
or other government-related changes, or shifts in exchange rates.
Financial information and changes in accounting policies
This interim financial report has been prepared in accordance with IAS 34,
Interim Financial Reporting, following the same accounting policies and
principles as in the annual financial statements for 2015. All figures in the
interim report are Group figures. All presented figures have been rounded and
consequently the sum of individual figures may deviate from the sum presented.
The preparation of the financial statements in accordance with IFRS requires
Vaisala's management to make estimates and assumptions that affect the valuation
of the reported assets and liabilities and the recognition of income and
expenses in the statement of income. Although the estimates are based on the
management's best knowledge at the date of the interim report, actual results
may differ from the estimates. The interim financial report is unaudited.
Consolidated Statement of Income
EUR million 1-3/2016 1-3/2015 1-12/2015
----------------------------------------------------------------------------
Net sales 68.7 58.7 318.5
Costs of sales -33.7 -32.5 -155.6
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Gross profit 35.0 26.3 162.8
Sales, marketing and administrative costs -23.5 -23.7 -95.8
Research and development costs -9.5 -8.5 -36.1
Other operating income and expense -3.0 -1.8 -1.3
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Operating profit (loss) -1.0 -7.7 29.6
Share of result in associated companies - - -0.1
Financial income and expenses, net -1.7 4.0 3.5
----------------------------------------------------------------------------
Profit (loss) before taxes -2.7 -3.7 33.0
Income taxes 0.6 0.9 -5.5
----------------------------------------------------------------------------
Profit (loss) for the period -2.1 -2.8 27.5
Earnings per share, EUR -0.12 -0.15 1.52
Diluted earnings per share, EUR -0.12 -0.15 1.51
Consolidated Statement of Comprehensive Income
EUR million 1-3/2016 1-3/2015 1-12/2015
----------------------------------------------------------------------------
Items that will not be reclassified to profit or loss
Actuarial profit (loss) on post-employment
benefits 0.0 0.0 0.4
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Total 0.0 0.0 0.4
----------------------------------------------------------------------------
Items that may be reclassified subsequently to profit
or loss
Currency translation differences -1.3 3.9 3.1
----------------------------------------------------------------------------
Total -1.3 3.9 3.1
----------------------------------------------------------------------------
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Total other comprehensive income -1.3 3.9 3.5
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total comprehensive income -3.4 1.1 31.0
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Consolidated Statement of Financial Position
EUR million
-------------------------------------------------------------------------------
March 31, March 31, December 31,
Assets 2016 2015 2015
-------------------------------------------------------------------------------
Non-current assets
Intangible assets 31.4 38.6 34.0
Property, plant and equipment 42.5 44.6 44.1
Investments 0.1 0.1 0.1
Investment in associated companies 0.8 0.9 0.8
Long-term receivables 0.8 0.3 0.8
Deferred tax assets 11.1 11.5 10.2
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Total non-current assets 86.6 95.9 90.0
Current assets
Inventories 40.5 40.4 39.0
Trade and other receivables 73.3 63.1 74.6
Income tax receivables 2.3 1.5 1.2
Cash and cash equivalents 57.0 54.7 59.2
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Total current assets 173.1 159.6 174.0
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Total assets 259.7 255.5 264.0
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March 31, March December 31,
Shareholders' equity and liabilities 2016 31, 2015 2015
-------------------------------------------------------------------------------
Shareholders' equity
Share capital 7.7 7.7 7.7
Other reserves 1.2 0.7 1.1
Cumulative translation adjustment 1.6 3.6 2.9
Treasury shares -4.3 -0.5 -4.3
Retained earnings 171.8 143.3 173.9
-------------------------------------------------------------------------------
Total shareholders' equity 178.0 154.8 181.3
Non-current liabilities
Interest-bearing liabilities 0.0 0.0 0.0
Post-employment benefit obligations 2.1 1.3 2.1
Deferred tax liabilities 4.0 5.5 4.5
Provisions for other liabilities and
charges 0.2 0.2 0.2
Other long-term liabilities 0.7 3.3 0.8
-------------------------------------------------------------------------------
Total non-current liabilities 7.1 10.3 7.6
Current liabilities
Interest-bearing liabilities 0.0 0.0 0.0
Advances received 4.8 4.7 3.9
Income tax liabilities 1.2 1.6 1.7
Provisions for other liabilities and
charges 3.8 0.2 0.4
Trade and other payables 64.8 84.0 69.2
-------------------------------------------------------------------------------
Total current liabilities 74.6 90.4 75.1
-------------------------------------------------------------------------------
Total shareholders' equity and liabilities 259.7 255.5 264.0
-------------------------------------------------------------------------------
Consolidated Statement of Changes in Shareholders' Equity
Share Other Treasury Translation Retained
EUR million capital reserves shares adjustment earnings Total
-------------------------------------------------------------------------------
Balance at Jan 1, 2015 7.7 2.5 -2.5 -0.2 162.6 170.0
Profit (loss) for the
period -2.8 -2.8
Other comprehensive
income 0.1 3.8 3.9
Dividend paid -16.4 -16.4
Sale of treasury shares 2.1 -2.1 0.0
Share-based payment -1.8 1.9 0.1
-------------------------------------------------------------------------------
Balance at Mar 31, 2015 7.7 0.7 -0.5 3.6 143.3 154.8
-------------------------------------------------------------------------------
Share Other Treasury Translation Retained
EUR million capital reserves shares adjustment earnings Total
-------------------------------------------------------------------------------
Balance at Jan 1, 2016 7.7 1.1 -4.3 2.9 173.9 181.3
Profit (loss) for the
period -2.1 -2.1
Other comprehensive
income 0.0 -1.3 -1.3
Share-based payment 0.1 0.1
-------------------------------------------------------------------------------
Balance at Mar 31, 2016 7.7 1.2 -4.3 1.6 171.8 178.0
-------------------------------------------------------------------------------
Consolidated Cash Flow Statement
EUR million 1-3/2016 1-3/2015 1-12/2015
-------------------------------------------------------------------------------
Cash flows from operating activities
Cash receipts from customers 84.7 82.5 325.4
Other income from business operations 0.0 -1.8 -1.4
Cash paid to suppliers and employees -81.2 -75.2 -277.1
Financials paid, net -1.5 1.9 -1.0
Income taxes paid, net -2.6 -1.1 -7.2
-------------------------------------------------------------------------------
Cash flow from operating activities -0.6 6.3 38.8
Cash flows from investing activities
Capital expenditure on fixed assets -1.1 -0.9 -8.3
Divestments 0.0 0.0 0.2
-------------------------------------------------------------------------------
Cash flow from investing activities -1.1 -0.9 -8.1
Cash flows from financing activities
Dividends paid - - -16.4
Purchase of treasury shares - - -3.9
Change in loan receivables 0.0 0.0 0.0
Change in leasing liabilities 0.0 0.0 0.0
-------------------------------------------------------------------------------
Cash flow from financing activities 0.0 0.0 -20.2
Cash and cash equivalents at the beginning of
period 59.2 47.6 47.6
Net increase (+) / decrease (-) in cash and cash
equivalents -1.7 5.4 10.5
Effect from changes in exchange rates -0.4 1.7 1.0
-------------------------------------------------------------------------------
Cash and cash equivalents at the end of period 57.0 54.7 59.2
-------------------------------------------------------------------------------
Notes for Report
Orders Received by Business Area
EUR million 1-3/2016 1-3/2015 1-12/2015
-------------------------------------------------------
Weather 40.9 45.3 225.6
Controlled Environment 23.9 23.6 94.4
-------------------------------------------------------
Total 64.8 68.9 320.0
-------------------------------------------------------
Net Sales by Business Area
EUR million 1-3/2016 1-3/2015 1-12/2015
-------------------------------------------------------
Weather
Products 25.8 18.9 116.2
Projects 9.9 9.5 71.0
Services 8.9 8.7 38.3
-------------------------------------------------------
Total 44.7 37.2 225.5
Controlled Environment
Products 21.3 19.3 83.5
Services 2.7 2.2 9.5
-------------------------------------------------------
Total 24.0 21.5 93.0
Sales, Other 0.0 0.0 0.0
-------------------------------------------------------
Total Sales 68.7 58.7 318.5
-------------------------------------------------------
Operating Result by Business Area
EUR million 1-3/2016 1-3/2015 1-12/2015
-------------------------------------------------------
Weather -1.9 -8.7 15.2
Controlled Environment 4.9 3.3 18.3
Other -4.1 -2.3 -4.0
-------------------------------------------------------
Total -1.0 -7.7 29.6
-------------------------------------------------------
Net Sales by Geographical Area
EUR million 1-3/2016 1-3/2015 1-12/2015
-------------------------------------------------------
EMEA 21.6 19.4 105.1
Americas 29.5 21.4 132.0
APAC 17.6 17.8 81.3
-------------------------------------------------------
Total 68.7 58.7 318.5
-------------------------------------------------------
Personnel
1-3/2016 1-3/2015 1-12/2015
-------------------------------------------------------------------------------
Average personnel 1,582 1,608 1,611
Personnel at the end of period 1,579 1,594 1,588
-------------------------------------------------------------------------------
Financial Instruments
1-3/2016 1-3/2015 1-12/2015
-------------------------------------------------------------------------------
Nominal value of financial derivatives, EUR
million 24.7 21.2 36.5
Fair values of financial derivatives, assets, EUR
million 0.7 0.0 0.1
Fair values of financial derivatives, liabilities,
EUR million 0.1 2.5 0.8
-------------------------------------------------------------------------------
Financial derivatives consist solely of foreign currency forwards and they are
measured based on price information derived from active markets and commonly
used valuation methods (Fair value hierarchy 2). Financial contracts are
executed only with counterparties that have high credit ratings.
Share Information
1-3/2016 1-3/2015 1-12/2015
-------------------------------------------------------------------------------
Number of shares outstanding, thousand 18,027 18,187 18,027
Number of treasury shares, thousand 192 32 192
Number of shares, diluted, thousand 18,180 18,232 18,259
Number of shares, weighted average, thousand 18,027 18,085 18,103
Number of shares traded, thousand 546 676 2,508
Share price, highest, EUR 25.00 27.02 27.02
Share price, lowest, EUR 21.81 21.55 21.55
-------------------------------------------------------------------------------
Key Ratios
1-3/2016 1-3/2015 1-12/2015
-------------------------------------------------------------------------------
Earnings per share, EUR -0.12 -0.15 1.52
Earnings per share, diluted, EUR -0.12 -0.15 1.51
Equity per share, EUR 9.87 8.51 10.06
Return on equity, % -4.7 -6.9 15.7
Cash flow from operating activities per share, EUR -0.03 0.35 2.15
Solvency ratio, % 69.8 61.7 69.7
-------------------------------------------------------------------------------
Further information
Kaarina Muurinen, CFO
Mobile +358 40 577 5066
Vaisala Corporation
Telephone conference and Audiocast
An English-language conference call for investors and analysts will be held
today, April 26, 2016 at 4:00 p.m. (Finnish time).
FI: +358 9 8171 0495
UK: +44 20 3194 0552
SE: +46 8 5664 2702
US: +1 855 716 1597
Live audiocast of the presentation by Kjell Forsén, President and CEO will start
at 4:00 p.m. and will be available at www.vaisala.com/investors. A recording
will be published at the same address at about 6:00 p.m.
Half year financial report
Vaisala will publish its half year financial report 2016 on Thursday, July
21, 2016 at approximately 2:00 p.m. Finnish time.
Capital Markets Day
Vaisala will held its Capital Markets Day at Vaisala's head office, Vanha
Nurmijärventie 21, Vantaa on Wednesday, May 11, 2016 from 11:30 a.m. till 3.30
p.m. At the event, Vaisala's top management will provide an update on the
company's business, development projects and near-term business priorities. A
more detailed program of the Capital Markets Day will be available on Vaisala's
website at www.vaisala.com/investors by May 2, 2016.
Distribution
Nasdaq Helsinki
Key media
www.vaisala.com
Vaisala is a global leader in environmental and industrial measurement. Building
on 80 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 1,600 professionals
worldwide and is listed on the Nasdaq Helsinki stock exchange.
www.vaisala.com www.twitter.com/VaisalaGroup
[HUG#2006820]
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