Review by the President and CEO

Kjell Forsen

Vaisala’s President and CEO Kjell Forsén comments on the first quarter 2018

“Vaisala had a good start for the year 2018. First quarter order intake increased by 7% from previous year and almost twice as much with comparable exchange rates. APAC was the strongest geographical area, its orders received increased as a result of several large orders from meteorology and transportation customer segments and strong demand from industrial customers. Orders included a country-wide lightning detection network order, and the third and the last phase of the Vietnamese infrastructure contract amounting to EUR 9.3 million. Digital solutions, power transmission and continuous monitoring systems did not achieve expected level during the quarter.

Net sales grew by 12% year-on-year and growth came from all geographical areas. In Weather and Environment Business Area, net sales increased by 20% following good project business performance and partly due to change in revenue recognition. With comparable exchange rates, Industrial Measurements Business Area’s net sales would have increased by 9%, but due to USD depreciation, net sales were flat compared to previous year. Instrument deliveries to industrial customers grew in APAC and EMEA and net sales in China were all-time high, whereas net sales in Americas declined due to flat volume development.

Following good net sales growth in Weather and Environment Business, which was partly due to change in revenue recognition, Vaisala’s first quarter operating result improved from previous year reaching 7.5% of net sales. In Industrial Measurements Business Area, operating result was strong 21.1% of net sales.

Despite good start for the year, we see uncertainty increasing somewhat for weather observation solutions market. Demand for digital solutions is expected to improve moderately. Demand for power transmission products is expected to develop positively and continuous monitoring systems to gain speed from the release of next generation system. Despite expected negative exchange rate impact, we estimate our full-year 2018 net sales to be in the range of EUR 330–350 million and operating result (EBIT) in the range of EUR 35–45 million.”

Kjell Forsén

President and CEO

Interim Report January-March 2018, April 25, 2018​