Foundation for future growth

Year 2009 was challenging for Vaisala, and as a result, we did not reach our net sales and profitability targets. Despite the declined net sales we managed to maintain our market shares.

The sales of Meteorology business area developed nicely, demonstrating growth of nearly 25 percent. Unfortunately its profitability was burdened by disruptions in radiosonde production and decline in delivery project margins. The unstable situation of the global economy had an affect on Controlled Environment and Weather Critical Operations business areas. Industrial markets declined, and the customers of Weather Critical Operations postponed their investment decisions.

Geographically, our sales varied a lot. The sales improved as much as 27 percent in the Americas, and 14 percent in China. On the other hand, sales decreased in the other APAC countries and in the EMEA region.

Our profitability was affected by the large ongoing development initiatives, which aim at growth and improved quality and manufacturing capability, and by the acquisition made at the end of the year. The increased price competition and the costs of demanding delivery projects had an effect on our profitability as well.

New strategy - new way of working and thinking

Year 2009 marked the beginning of the new strategy execution for us. As a company, this meant a big change of course. Customer and market driven way of thinking as well as the matrix organization require a change of culture and attitude throughout the whole organization. This will take time, but we have seen the benefits of the new way of working already during the first year, and will continue with the execution.

Going forward, strategy execution will require further significant investments. With these investments we will lay the foundation for our future growth objectives, and strengthen our position as the leader in environmental measurement.

Vaisala's personnel have worked diligently and with determination in executing the new strategy. For this, each and every one of them deserves my heartfelt thanks. I also want to express my gratitude to our customers and partners for their cooperation and the trust they have shown to Vaisala during the past year.

Kjell Forsén
President and CEO