2015-04-28 13:00:00 CEST
2015-04-28 13:01:01 CEST
REGULATED INFORMATION
Vaisala - Interim report (Q1 and Q3)
Vaisala Corporation Interim Report January-March 2015
Vaisala Corporation
Interim Report
April 28, 2015 at 2.00 p.m. (EET)
Vaisala Corporation Interim Report January-March 2015
January-March 2015 net sales increased by 2% to EUR 58.7 million. Operating
result decreased to EUR -7.7 (-3.2) million.
January-March 2015 highlights
* Orders received EUR 66.9 (68.6) million, decrease 2%
* Order book EUR 137.5 (144.7) million, decrease 5%
* Net sales EUR 58.7 (57.5) million, increase 2%
* Gross margin 44.8% (48.1%)
* Operating result EUR -7.7 (-3.2 ) million
* Earnings per share EUR -0.15 (-0.12)
* Cash flow from operating activities EUR 6.3 (-0.9) million
* Cash and cash equivalents EUR 54.7 (43.3) million
* Business outlook for 2015: Vaisala estimates its full year 2015 net sales to
be in the range of EUR 285-315 million and the operating result (EBIT) in
the range of EUR 20-30 million.
Vaisala's President and CEO Kjell Forsén comments on first quarter 2015"The first quarter of the year is typically slow for Vaisala, and this year
makes no exception. Following very strong fourth quarter 2014, Vaisala's net
sales were EUR 58.7 million and increased by 2% compared to previous year.
Weather Business Area's net sales have a strong seasonality pattern and its net
sales were EUR 37.2 million which decreased 5% from previous year. Controlled
Environment Business Area's net sales were EUR 21.5 million representing a 17%
increase and it is noteworthy that the growth came from all regions and was
strongest in Americas.
In the first quarter of 2015, orders received decreased by 2% to EUR 66.9
million. This is a result of order intake in Weather Business Area decreasing by
14%. One highlight of the quarter's orders was a USD 5.8 million contract with
the U.S. National Weather Service to upgrade their weather radar network with
the latest technology. Controlled Environment Business Area's orders received
increased by 31%. Vaisala's order book remained strong at EUR 137.5 million
despite a decline of 5%.
The first quarter operating result was EUR -7.7 million. The disappointing
result was mainly due to lower gross margin resulting from modest volumes and
decreased net sales in Weather Business Area. Controlled Environment Business
Area's operating result was EUR 3.3 million increasing 55% following the good
sales performance and strong market demand. Vaisala's result also includes EUR
1.8 million one-time redundancy costs as the new organization was finalized and
implemented from the beginning of April.
From April 1(st) Vaisala now goes forward with a new organizational setup
enabling a more agile way of working with less internal coordination points.
Headcount is somewhat reduced but the real benefit is that the new
organizational structure strengthens customer focus across all functions and
ensures operational efficiency through simplification.
Latest economic forecasts still refer to moderate economic growth for 2015, as
improved outlook of developed countries is compensating risks related to
emerging economies. Even though weather observation market activity was quiet in
the first quarter 2015, we are not seeing significant changes in underlying
demand and market is expected to improve towards the end of the year. However,
differences in business conditions between customer groups and regions are
expected to continue. Vaisala estimates its full year 2015 net sales to be in
the range of EUR 285-315 million and the operating result (EBIT) in the range of
EUR 20-30 million."
Key Figures
1-3/2015 1-3/2014 1-12/2014
-----------------------------------------------------------------------------
Orders received, EUR million 66.9 68.6 295.0
Order book, EUR million 137.5 144.7 129.2
Net sales, EUR million 58.7 57.5 299.7
Gross profit, EUR million 26.3 27.6 153.1
Gross margin, % 44.8 48.1 51.1
Operating expenses, EUR million 32.2 30.8 127.2
Operating result, EUR million -7.7 -3.2 26.4
Operating result, % -13.1 -5.5 8.8
Profit (loss) before taxes, EUR million -3.7 -3.3 29.1
Profit (loss) for the period, EUR million -2.8 -2.2 23.4
Earnings per share, EUR -0.15 -0.12 1.30
Return on equity, % -6.9 -5.9 14.3
Capital expenditure, EUR million 0.9 1.7 7.9
Depreciation, EUR million 3.9 3.7 15.2
Cash flow from operating activities, EUR million 6.3 -0.9 23.8
Cash and cash equivalents, EUR million 54.7 43.3 47.6
-----------------------------------------------------------------------------
Market situation in January-March 2015
Global economy continued moderate growth in January-March 2015. Improved
economic conditions of developed countries impacted positively the market for
industrial measurement solutions. Weather observation market slowed down in
January-March 2015, after active second half of 2014. Depreciation of euro
contributed positively to Vaisala's financial performance.
In EMEA weather observation market slowed down in January-March 2015. Economic
conditions weakened market conditions in Russia and its neighboring countries.
Demand in Western European weather observation market also weakened slightly,
after very active year of 2014. Demand for industrial measurement solutions grew
in EMEA, supported by improved business conditions of European manufacturing
industry.
In Americas weather observation market slowed down slightly, after active second
half of 2014. The market environment for industrial measurement solutions
remained favorable.
In APAC weather observation market remained stable. Demand for industrial
measurement solutions in APAC was supported by improved market conditions in
Japan.
January-March 2015 performance
Orders received
EUR million 1-3/2015 1-3/2014 Change, % 2014
---------------------------------------------------------
Weather 43.1 50.4 -14 215.2
Controlled Environment 23.8 18.2 31 79.8
---------------------------------------------------------
Total 66.9 68.6 -2 295.0
---------------------------------------------------------
Order book
EUR million 1-3/2015 1-3/2014 Change, % 2014
---------------------------------------------------------
Weather 129.7 139.1 -7 123.7
Controlled Environment 7.8 5.6 39 5.5
---------------------------------------------------------
Total 137.5 144.7 -5 129.2
---------------------------------------------------------
In January-March 2015, orders received were EUR 66.9 (68.6) million and
decreased by 2% compared to previous year. The decline came mainly from EMEA.
Weather Business Area's orders received were EUR 43.1 (50.4) million and
decreased by 14%. The decline came especially from Airports, Roads and Rail and
New Weather Market customer groups. Controlled Environment Business Area's
orders received were EUR 23.8 (18.2) million and increased by 31% and the growth
came from all geographical areas.
At the end of March 2015 the order book was EUR 137.5 (144.7) million and
decreased by 5% compared to previous year. Of the order book EUR 49.1 (58.3)
million will be delivered in 2016 or later.
Net sales by business area
EUR million 1-3/2015 1-3/2014 Change, % 2014
----------------------------------------------------------
Weather 37.2 39.1 -5 219.6
Controlled Environment 21.5 18.3 17 80.2
----------------------------------------------------------
Total 58.7 57.5 2 299.7
----------------------------------------------------------
Net sales by geographical area
EUR million 1-3/2015 1-3/2014 Change, % 2014
----------------------------------------------------------
EMEA 19.4 22.1 -12 111.8
Americas 21.4 21.9 -2 112.1
APAC 17.8 13.5 32 75.9
----------------------------------------------------------
Total 58.7 57.5 2 299.7
----------------------------------------------------------
In January-March 2015, Vaisala's net sales were EUR 58.7 (57.5) million and
increased by 2% compared to previous year. Weather Business Area's net sales
were EUR 37.2 (39.1) million and decreased by 5%. The decline came from all
customer groups except Airports customer group. Controlled Environment Business
Area's net sales were EUR 21.5 (18.3) million and increased by 17% and the
growth came from all geographical areas and especially from Americas.
In January-March 2015, net sales in EMEA was EUR 19.4 (22.1) million and
decreased by 12% compared to previous year, in the Americas EUR 21.4 (21.9)
million and decreased by 2% and in APAC EUR 17.8 (13.5) million and increased by
32%.
At comparable exchange rates the net sales would have been EUR 54.3 (57.5)
million and decrease would have been EUR 3.2 million or 6% from previous year.
The positive exchange rate effect was EUR 4.4 million, which was mainly caused
by USD exchange rate appreciation against EUR.
Operations outside Finland accounted for 98% (98%) of net sales.
Gross margin and operating result
EUR million 1-3/2015 1-3/2014 Change, % 2014
----------------------------------------------------------
Gross margin, % 44.8 48.1 51.1
Operating result
Weather -8.7 -4.8 -81 17.0
Controlled Environment 3.3 2.1 55 12.1
Eliminations and other -2.3 -0.5 -363 -2.8
----------------------------------------------------------
Total operating result -7.7 -3.2 -142 26.4
----------------------------------------------------------
In January-March 2015, gross margin was 44.8% (48.1%). The decline in gross
margin was mainly caused by low sales volumes and related weakening in scale
economies in Weather Business Area. In addition, EUR depreciation and adoption
of standard cost inventory valuation increased cost of goods sold by EUR 1.0
million.
Operating expenses for the first quarter 2015 were EUR 32.2 (30.8) million and
increased by 4% compared to previous year. The increase came mainly from USD
based expenses due to the EUR depreciation. In addition, operating result was
decreased by EUR 1.8 million one-time expenses related to the restructuring.
In January-March 2015, operating result was EUR -7.7 (-3.2) million.
Financial income and expenses were EUR 4.0 (-0.1) million for the period of
January-March 2015. The increase is mainly due to foreign exchange gains related
to valuation of USD denominated receivables.
Profit (loss) before taxes was EUR -3.7 (-3.3) million for the period of
January-March 2015. Income taxes were EUR 0.9 (1.1) million. Net result was EUR
-2.8 (-2.2) million.
Earnings per share for January-March 2015 were EUR -0.15 (-0.12).
Statement of financial position and cash flow
Vaisala's financial position remained strong at the end of the March 2015.
Because of good cash flow from third quarter of 2014 onwards, cash and cash
equivalents amounted to EUR 54.7 (43.3) million at the end of March 2015 and
Vaisala did not have any material interest bearing liabilities.
The statement of financial position total was EUR 255.5 (226.5) million. The
increase was due to EUR depreciation against other currencies and also increases
in inventories and short-term liabilities.
In January-March 2015, Vaisala's cash flow from operating activities was EUR
6.3 (-0.9) million. The improvement compared to previous year was mainly related
to decrease of accounts receivables.
Capital expenditure and divestments
Gross capital expenditure totaled EUR 0.9 (1.7) million for January-March 2015.
Depreciation was EUR 3.9 (3.7) million.
Weather Business Area
EUR million 1-3/2015 1-3/2014 Change, % 2014
---------------------------------------------------
Orders received 43.1 50.4 -14 215.2
Order book 129.7 139.1 -7 123.7
Net sales, total 37.2 39.1 -5 219.6
Products 18.9 21.9 -13 108.1
Projects 9.5 9.5 0 74.7
Services 8.7 7.8 12 36.7
Gross margin, % 37.4 43.9 48.4
Operating result -8.7 -4.8 -81 17.0
---------------------------------------------------
In January-March 2015, orders received were EUR 43.1 (50.4) million and
decreased by 14% compared to previous year. Orders received decreased in
Airports, Roads and Rail and New Weather Market customer groups. At the end of
March 2015 the order book was EUR 129.7 (139.1) million and decreased by 7%
compared to previous year. Order book decreased especially in Airports and New
Weather Market customer groups. Of the order book EUR 48.9 (57.8) million will
be delivered in 2016 or later.
Vaisala signed a USD 5.8 million contract with the U.S. National Weather Service
to deliver Vaisala Sigmet Digital Receiver and Signal Processors, RVP901.
Deliveries will be completed over the next 12 months. This order is part of the
frame contract which includes the delivery of Vaisala Sigmet Digital Receivers
and Signal Processors as well as the corresponding dual polarization software
licenses. The total value of the frame contract is USD 9.0 million.
In January-March 2015, Weather Business Area's net sales were EUR 37.2 (39.1)
million and decreased by 5% compared to previous year. The decline came from all
customer groups except Airports customer group. Weather Business Area improved
its net sales in service business, in product business net sales decreased. At
comparable exchange rates the net sales would have been EUR 34.7 (39.1) million
and decrease would have been EUR 4.5 million or 11% from previous year. The
positive exchange rate effect was EUR 2.5 million, which was mainly caused by
USD appreciation against EUR.
In January-March 2015, operating result was EUR -8.7 (-4.8) million and decline
came from net sales, gross margin and operating expenses. Gross margin was
37.4% (43.9%). The decline in gross margin was mainly caused by low sales
volumes and related weakening in scale economies. In addition, EUR depreciation
and adoption of standard cost inventory valuation increased cost of goods sold.
Operating expense increase came mainly from USD based expenses due to the EUR
depreciation.
Controlled Environment Business Area
EUR million 1-3/2015 1-3/2014 Change, % 2014
----------------------------------------------------
Orders received 23.8 18.2 31 79.8
Order book 7.8 5.6 39 5.5
Net sales, total 21.5 18.3 17 80.2
Products 19.3 16.4 17 71.9
Services 2.2 1.9 13 8.3
Gross margin, % 57.9 57.0 58.4
Operating result 3.3 2.1 55 12.1
---------------------------------------------------
In January-March 2015, orders received were EUR 23.8 (18.2) million and
increased by 31% compared to previous year. At the end of March 2015 the order
book was EUR 7.8 (5.6) million and increased by 39% compared to previous year.
Of the order book EUR 0.2 (0.5) million will be delivered in 2016 or later.
In January-March 2015, Controlled Environment Business Area's net sales were EUR
21.5 (18.3) million and increased by 17% compared to previous year. Net sales
increased in all geographical areas and especially in Americas. At comparable
exchange rates the net sales would have been EUR 19.6 (18.3) million and
increase would have been EUR 1.2 million or 7% from previous year. The positive
exchange rate effect was EUR 1.9 million, which was mainly caused by USD
appreciation against EUR.
In January-March 2015, Controlled Environment Business Area's operating result
was EUR 3.3 (2.1) million and increased by 55% compared to previous year. Gross
margin was 57.9% (57.0%). The increase in gross margin was mainly due to higher
sales volumes and related improvement in scale economies and despite of
decreased inventory values caused by EUR depreciation and adoption of standard
cost inventory valuation. Operating expense increase came mainly from higher
sales expenses.
Research and Development
In January-March 2015, research and development expenses totaled EUR 8.5 (8.2)
million, representing 14.5% (14.4%) of net sales.
EUR million 1-3/2015 1-3/2014 Change, % 2014
--------------------------------------------------------
Weather 6.3 6.1 3 25.7
Controlled Environment 2.2 2.1 2 8.2
--------------------------------------------------------
Total 8.5 8.2 3 34.0
--------------------------------------------------------
Weather Business Area R&D expenses were 17.0% (15.6%) of net sales. Controlled
Environment Business Area R&D expenses were 10.1% (11.5%) of net sales.
Personnel
The average number of personnel employed in Vaisala during January-March 2015
was 1,608 (1,582). The number of employees at the end of March 2015 was 1,594
(1,585) and this is not yet reflecting the full impact of the restructuring. At
the end of 2014, the number of employees was 1,613.
At the end of March 2015, 43% (44%) of the personnel was based outside Finland.
New business structure and completion of co-operation negotiations
Vaisala announced on January 27, 2015 its plans to restructure its business in
order to strengthen the capability to implement its strategy and to increase
agility. As of April 1, 2015, Weather Business Area was organized into three
business units, Meteorology, Transportation and Energy, and Controlled
Environment Business Area was organized into three regions with full business
responsibility, Americas, EMEA and APAC.
In order to foster the business areas to operate with different business models
the current Service function was integrated into Weather and Controlled
Environment Business Areas. In the new structure Information Services and Field
Services are part of the Weather Business Area whereas Calibration and Repair
Services are part of the Controlled Environment Business Area. Vaisala's
Operations and Support units continue to serve as group functions.
Vaisala continues to invest in its growth businesses and to develop products and
services which combine its customers' business expertise and Vaisala's
technological leadership. The new organizational structure strengthens customer
focus across all functions and ensures operational efficiency through
simplification.
The planning of restructuring was finalized and in Finland the related co-
operation negotiations which were initiated on February 2, 2015 were completed
on March 5, 2015. As a result, Vaisala will reduce its workforce by a total of
52 positions, out of which 18 positions will be reduced in Finland. The original
estimate for the reduction was 60 full-time equivalents, out of which about 25
were estimated to be in Finland. The reduction will take place through
redundancies, retirement options and terminations of temporary contracts.
Vaisala will provide a range of support measures for those affected by the
restructuring.
This restructuring is estimated to result in annual cost savings of EUR 4
million by 2016. The cost savings for 2015 are estimated to be EUR 2 million.
The first quarter operating result includes EUR 1.8 million accrual for one-time
costs.
Change in Vaisala's Management Group
Hannu Katajamäki, Executive Vice President, Services and member of Vaisala's
Management Group left Vaisala as of April 1, 2015. The change followed Vaisala's
business restructuring where the Service function was integrated into Weather
and Controlled Environment Business Areas. Hannu Katajamäki was a member of
Vaisala's Management Group since 2011.
As of April 1, 2015 Vaisala's Management Group members are:
* Kjell Forsén, President and CEO, Chairman of the Management Group
* Marja Happonen, Executive Vice President, Human Resources
* Kai Konola, Executive Vice President, Weather Business Area
* Sampsa Lahtinen, Executive Vice President, Controlled Environment Business
Area
* Kaarina Muurinen, CFO
* Vesa Pylvänäinen, Executive Vice President, Operations
Near-term risks and uncertainties
Vaisala's business is exposed to changes in the global economy, politics,
conflicts, policies, regulations, Vaisala's supply chain and distribution
channels, and accidents as well as natural disasters and epidemics, which may
affect business e.g. through order cancellations, disturbance in logistics,
travel restrictions, and loss of market potential. 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 revenue and profitability.
The most significant near-term risks and uncertainties that may affect both
revenue and profitability relate to the company's ability to maintain its
delivery capability, availability of critical components, interruptions in
manufacturing or IT systems, changes in the global economy, Russia sanctions,
spreading of epidemics, continuing conflicts in the Middle East and Africa,
currency exchange rates, patent trolls, customers' financing capability, changes
in customers' purchasing or investment behavior, and delays or cancellations of
orders. Changes in the competition may affect the volume and profitability of
business through introduction of new competitors and price erosion in areas
which traditionally have been strong for Vaisala. Changes in subcontractor
relations, their operations or operating environment as well as the quality of
the deliverables may have a negative impact on Vaisala's business.
A significant part of Vaisala's business is project business. Project business
performance and schedules have dependencies to third parties, which may impact
profitability and timing of revenue recognition. Assumptions regarding new
project and service business opportunities constitute a risk for both revenue
and profitability.
The importance of information services and decision support systems is
increasing in Vaisala's weather business. These Internet-based online services
are potential subjects to a variety of cyber risks.
Further information about risk management in Vaisala is available on the company
website at http://www.vaisala.com/investors, Corporate Governance.
Decisions by Vaisala Corporation's Annual General Meeting
Vaisala Corporation's Annual General Meeting was held on March 31, 2015 in
Vantaa, Finland. 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, 2014.
Dividend
The Annual General Meeting decided a dividend of EUR 0.90 per share,
corresponding to the total of EUR 16,368,132.60. The record date for the
dividend payment was April 2, 2015 and the payment date was April 14, 2015.
Board of Directors
The Annual General Meeting confirmed that the number of Board members is seven.
Petra Lundström, Mikko Niinivaara, Yrjö Neuvo, Maija Torkko, Pertti Torstila and
Raimo Voipio will continue as members of the Board of Directors. Ville Voipio
was elected as a new member of the Board of Directors.
The Annual General Meeting decided that the annual fee payable to the Chairman
of the Board of Directors is EUR 45,000 and EUR 35,000 for each Board member.
Approximately 40 percent of the annual remuneration will be paid in Vaisala
Corporation's A shares acquired directly in the name of the Board members from
the market and the rest in cash. In addition, the Annual General Meeting decided
that the compensation for the Chairman of the Audit Committee is EUR 1,500 per
attended meeting and EUR 1,000 for each member of the Audit Committee. The
compensation for the Chairman and each member of the Remuneration and HR
Committee and any other committee established by the Board of Directors is EUR
1,000 per attended meeting.
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 their reasonable
invoice presented to the company.
Authorization for directed acquisition of own A shares
The Annual General Meeting authorized the Board of Directors to decide on the
directed repurchase of a maximum of 160,000 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 September 30, 2016.
Authorization to transfer Company's own shares
The Annual General Meeting authorized the Board of Directors to decide on the
issuance of the Company's treasury A shares. The authorization is limited to a
maximum of 319,150 shares. The issuance of own shares may be carried out in
deviation from the shareholders' pre-emptive rights (directed issue). The
authorization entitles the issuance of treasury A shares as a directed issue
without payment as part of the Company's share based incentive plan. The Board
of Directors can also use this authorization to grant special rights entitling
subscription of the Company's own shares that are held by the Company. 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 March 31, 2020.
Donations
The Annual General Meeting authorized the Board of Directors to decide on
donations of maximum EUR 250,000.
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:
Audit Committee
Maija Torkko 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.
Remuneration and HR Committee
Raimo Voipio was elected as the Chairman and Yrjö Neuvo and Maija Torkko as
members of the Remuneration and HR Committee. Raimo Voipio is independent of the
Company. Yrjö Neuvo and Maija Torkko are independent both of the Company and of
significant shareholders.
Vaisala's shares
In January-March 2015, a total number of 675,650 (425,035) Vaisala A shares with
a value totaling EUR 16.4 (9.9) million were traded on the NASDAQ OMX Helsinki
Ltd. On March 31, 2015 the closing price was EUR 26.10 (22.50). The highest
quotation during January-March 2015 was EUR 27.02 (24.98) and the lowest EUR
21.55 (21.06).
On March 31, 2015, 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.
The market value of Vaisala's A shares on March 31, 2015 was EUR 387.0 (330.1)
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 474.7 (406.3) million, excluding the Company's treasury shares.
More information about Vaisala's share and shareholders are presented on the
website, www.vaisala.com/investors.
Treasury shares and parent company shares
The Board of Directors of Vaisala Corporation decided on March 10, 2015 issuance
of directed shares without consideration for the payment of share-based
incentive 2012. In the issuance of shares a total of 63,800 Company's series A
treasury shares were transferred without consideration to Company's key
employees according to the terms and conditions of the Performance Share Plan
2012. The transfer of shares by means of a directed issuance of shares without
consideration is based on the authorization granted to the Board of Directors by
the Annual General Meeting of Shareholders held on 26 March, 2014.
The Board of Directors of Vaisala Corporation decided on March 10, 2015 to use
the authorization granted by the Annual General Meeting of Shareholders held on
March 26, 2014 for transferring the Company's series A treasury shares. Vaisala
Corporation sold a total of 63,800 series A treasury shares held by the Company
in order to cover the cash reward of the Performance Share Plan 2012. The cash
reward was used to cover withholding tax and other similar costs. The sale of
the Company's treasury shares commenced on March 11, 2015. The Company's
treasury shares were sold through public trading at the market price prevailing
at the time of the transactions in accordance with the rules of the NASDAQ OMX
Helsinki Ltd.
At the end of March 2015, the Company held a total of 31,550 Vaisala series A
treasury shares, which represented 0.2% of the share capital and 0.04% of the
votes.
Market outlook 2015
Latest economic forecasts still refer to moderate economic growth for 2015, as
improved outlook of developed countries is compensating risks related to
emerging economies. Even though weather observation market activity was subdued
in January-March 2015, Vaisala is not seeing significant changes in underlying
demand and market is expected to improve towards the end of the year. However,
differences in business conditions between customer groups and regions are
expected to remain. Renewable energy, industrial measurement solutions and
weather radars have the most promising outlook. Competition in weather
observation market is expected to continue intensifying. In weather observations
market it continues to be challenging to forecast customers' timing for decision
making and acceptance of larger customer projects, having potentially material
impact on overall Vaisala weather business.
In EMEA demand for weather observation solutions is expected to be constrained
by economic weakness in Russia and its neighboring countries. Weather
observation market outlook in Western Europe is stable. Demand for industrial
measurement solutions markets is expected to increase.
In Americas weather observation market outlook is stable in North America, but
regional economic weakness is expected to affect markets in Latin America.
Market environment for industrial measurement solutions is expected to remain
favorable in Americas, following good demand from Northern America.
In APAC demand for weather observation solutions is expected to cool off
slightly in 2015, driven by Chinese market. Demand for industrial measurement
solutions is expected to increase.
Business outlook for 2015
Vaisala estimates its full year 2015 net sales to be in the range of EUR
285-315 million and the operating result (EBIT) in the range of EUR 20-30
million.
Vantaa, April 28, 2015
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 2014. 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.
In order to align Vaisala's business type reporting with the new organization
structure, the net sales of spare parts and systems are reported under Products
business starting from January 1, 2015. Previously spare parts were reported
under Services business and systems under Projects business. 2014 numbers have
been adjusted retrospectively.
The interim financial report is unaudited.
Consolidated Statement of Income
EUR million 1-3/2015 1-3/2014 1-12/2014
----------------------------------------------------------------------------
Net sales 58.7 57.5 299.7
Costs of sales -32.5 -29.8 -146.6
----------------------------------------------------------------------------
Gross profit 26.3 27.6 153.1
Sales, marketing and administrative costs -23.7 -22.5 -93.2
Research and development costs -8.5 -8.2 -34.0
Other operating income and expense -1.8 0.0 0.5
----------------------------------------------------------------------------
Operating profit (loss) -7.7 -3.2 26.4
Share of result in associated companies - - 0.1
Financial income and expenses, net 4.0 -0.1 2.6
----------------------------------------------------------------------------
Profit (loss) before taxes -3.7 -3.3 29.1
Income taxes 0.9 1.1 -5.7
----------------------------------------------------------------------------
Profit (loss) for the period -2.8 -2.2 23.4
Earnings per share, EUR -0.15 -0.12 1.30
Diluted earnings per share, EUR -0.15 -0.12 1.29
Consolidated Statement of Comprehensive Income
EUR million 1-3/2015 1-3/2014 1-12/2014
----------------------------------------------------------------------------
Items that will not be reclassified to profit
or loss
Actuarial loss on post-employment benefits 0.0 0.0 -0.5
----------------------------------------------------------------------------
Total 0.0 0.0 -0.5
----------------------------------------------------------------------------
Items that may be reclassified subsequently to
profit or loss
Currency translation differences 3.9 0.0 3.5
----------------------------------------------------------------------------
Total 3.9 0.0 3.5
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total other comprehensive income 3.9 0.0 3.0
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total comprehensive income 1.1 -2.2 26.4
----------------------------------------------------------------------------
Consolidated Statement of Financial Position
EUR million
------------------------------------------------------------------------------
March 31, March 31, December 31,
Assets 2015 2014 2014
------------------------------------------------------------------------------
Non-current assets
Intangible assets 38.6 35.2 37.1
Property, plant and equipment 44.6 45.7 44.2
Investments 0.1 0.1 0.1
Investment in associated companies 0.9 0.7 0.8
Long-term receivables 0.3 0.6 0.3
Deferred tax assets 11.5 8.9 8.9
------------------------------------------------------------------------------
Total non-current assets 95.9 91.3 91.5
Current assets
Inventories 40.4 31.4 33.9
Trade and other receivables 63.1 57.0 70.5
Income tax receivables 1.5 3.4 1.1
Cash and cash equivalents 54.7 43.3 47.6
------------------------------------------------------------------------------
Total current assets 159.6 135.2 153.1
------------------------------------------------------------------------------
Total assets 255.5 226.5 244.6
------------------------------------------------------------------------------
Shareholders' equity and liabilities
------------------------------------------------------------------------------
Shareholders' equity
Share capital 7.7 7.7 7.7
Other reserves 0.7 1.6 2.5
Cumulative translation adjustment 3.6 -3.6 -0.2
Treasury shares -0.5 -2.5 -2.5
Retained earnings 143.3 137.4 162.6
------------------------------------------------------------------------------
Total shareholders' equity 154.8 140.5 170.0
Non-current liabilities
Interest-bearing liabilities 0.0 0.0 0.0
Post-employment benefit obligations 1.3 0.7 1.3
Deferred tax liabilities 5.5 5.1 5.3
Provisions for other liabilities and
charges 0.2 - 0.2
Other long-term liabilities 3.3 2.2 2.9
------------------------------------------------------------------------------
Total non-current liabilities 10.3 8.0 9.7
Current liabilities
Interest-bearing liabilities 0.0 0.0 0.0
Advances received 4.7 4.0 3.9
Income tax liabilities 1.6 0.3 1.5
Provisions for other liabilities and
charges 0.2 - 1.4
Trade and other payables 84.0 73.6 58.1
------------------------------------------------------------------------------
Total current liabilities 90.4 77.9 64.9
------------------------------------------------------------------------------
Total shareholders' equity and liabilities 255.5 226.5 244.6
------------------------------------------------------------------------------
Consolidated Statement of Changes in Shareholders' Equity
Share Other Treasury Translation Retained
EUR million capital reserves shares adjustment earnings Total
-------------------------------------------------------------------------------
Balance at Jan 1, 2014 7.7 1.5 -2.5 -3.6 155.9 158.9
Profit (loss) for the
period -2.2 -2.2
Other comprehensive
income 0.0 0.0 0.0 0.0
Dividend paid -16.3 -16.3
Share-based payment 0.2 0.2
-------------------------------------------------------------------------------
Balance at March 31, 2014 7.7 1.6 -2.5 -3.6 137.4 140.5
-------------------------------------------------------------------------------
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 March 31, 2015 7.7 0.7 -0.5 3.6 143.3 154.8
-------------------------------------------------------------------------------
Consolidated Cash Flow Statement
EUR million 1-3/2015 1-3/2014 1-12/2014
-------------------------------------------------------------------------------
Cash flows from operating activities
Cash receipts from customers 82.5 69.6 287.0
Other income from business operations -1.8 0.0 0.4
Cash paid to suppliers and employees -75.2 -68.9 -260.3
Financials paid, net 1.9 0.3 1.3
Income taxes paid, net -1.1 -2.0 -4.5
-------------------------------------------------------------------------------
Cash flow from operating activities 6.3 -0.9 23.8
Cash flows from investing activities
Capital expenditure on fixed assets -0.9 -1.7 -7.9
Divestments 0.0 0.3 1.3
-------------------------------------------------------------------------------
Cash flow from investing activities -0.9 -1.3 -6.6
Cash flows from financing activities
Dividends paid - - -16.2
Change in loan receivables 0.0 0.0 -0.1
Change in leasing liabilities 0.0 0.0 0.0
-------------------------------------------------------------------------------
Cash flow from financing activities 0.0 0.0 -16.3
Cash and cash equivalents at the beginning of
period 47.6 45.8 45.8
Net increase (+) / decrease (-) in cash and cash
equivalents 5.4 -2.3 0.9
Effect from changes in exchange rates 1.7 -0.2 0.9
-------------------------------------------------------------------------------
Cash and cash equivalents at the end of period 54.7 43.3 47.6
-------------------------------------------------------------------------------
Notes for Interim Report
Orders Received by Business Area
EUR million 1-3/2015 1-3/2014 1-12/2014
-------------------------------------------------------
Weather 43.1 50.4 215.2
Controlled environment 23.8 18.2 79.8
-------------------------------------------------------
Total 66.9 68.6 295.0
-------------------------------------------------------
Net Sales by Business Area
EUR million 1-3/2015 1-3/2014 1-12/2014
-------------------------------------------------------
Weather
Products 18.9 21.9 108.1
Projects 9.5 9.5 74.7
Services 8.7 7.8 36.7
-------------------------------------------------------
Total 37.2 39.1 219.6
Controlled environment
Products 19.3 16.4 71.9
Services 2.2 1.9 8.3
-------------------------------------------------------
Total 21.5 18.3 80.2
Sales, Other 0.0 0.0 0.0
-------------------------------------------------------
Total Sales 58.7 57.5 299.7
-------------------------------------------------------
Operating Result by Business Area
EUR million 1-3/2015 1-3/2014 1-12/2014
-------------------------------------------------------
Weather -8.7 -4.8 17.0
Controlled environment 3.3 2.1 12.1
Other -2.3 -0.5 -2.8
-------------------------------------------------------
Total -7.7 -3.2 26.4
-------------------------------------------------------
Net Sales by Geographical Area
EUR million 1-3/2015 1-3/2014 1-12/2014
-------------------------------------------------------
EMEA 19.4 22.1 111.8
Americas 21.4 21.9 112.1
APAC 17.8 13.5 75.9
-------------------------------------------------------
Total 58.7 57.5 299.7
-------------------------------------------------------
Personnel
1-3/2015 1-3/2014 1-12/2014
-------------------------------------------------------------------------------
Average personnel 1,608 1,582 1,617
Personnel at the end of
period 1,594 1,585 1,613
-------------------------------------------------------------------------------
Financial Instruments
1-3/2015 1-3/2014 1-12/2014
-------------------------------------------------------------------------------
Nominal value of financial derivatives, EUR
million 21.2 19.3 20.0
Fair values of financial derivatives, assets, EUR
million 0.0 0.2 0.0
Fair values of financial derivatives, liabilities,
EUR million 2.5 0.1 1.4
-------------------------------------------------------------------------------
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
1-3/2015 1-3/2014 1-12/2014
-------------------------------------------------------------------------------
Number of shares outstanding, thousand 18,187 18,059 18,059
Number of treasury shares, thousand 32 159 159
Number of shares, diluted, thousand 18,232 18,187 18,234
Number of shares, weighted average, thousand 18,085 18,059 18,059
Number of shares traded, thousand 676 425 1,110
Share price, highest, EUR 27.02 24.98 24.98
Share price, lowest, EUR 21.55 21.06 19.40
-------------------------------------------------------------------------------
Key Ratios
1-3/2015 1-3/2014 1-12/2014
-------------------------------------------------------------------------------
Earnings per share, EUR -0.15 -0.12 1.30
Earnings per share, diluted, EUR -0.15 -0.12 1.29
Equity per share, EUR 8.51 7.78 9.41
Return on equity, % -6.9 -5.9 14.3
Cash flow from operating activities per share, EUR 0.35 -0.05 1.32
Solvency ratio, % 61.7 63.2 70.6
-------------------------------------------------------------------------------
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 on
the same day 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.
Second quarter results bulletin
Vaisala will publish its January-June 2015 Interim Report on Thursday, July
23, 2015 at approximately 2:00 p.m. Finnish time.
Distribution:
NASDAQ OMX Helsinki
Key media
www.vaisala.com
Vaisala is a global leader in environmental and industrial measurement. Building
on 79 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 OMX Helsinki stock exchange.
www.vaisala.com www.twitter.com/VaisalaGroup
[HUG#1915932]
© 2024 Nasdaq, Inc. All Rights Reserved |