Review by the President and CEO

Vaisala’s President and CEO Kjell Forsén comments on the second quarter 2017

“During the second quarter orders received continued to grow in both business areas achieving 6% growth on Vaisala level and order book increased by 8%. In Weather and Environment Business Area, orders from meteorology and renewable energy customers increased compared to previous year. In Industrial Measurements Business Area, orders grew in all product areas, and growth was strongest in APAC. It is noteworthy that Industrial Measurements Business Area’s order book has increased by 40% year-on-year, as order flow was strong especially towards the end of the quarter.

Net sales development was a disappointment ending on slightly below previous year’s level. Weather and Environment Business Area’s net sales declined to EUR 49.3 million mainly due to lower project deliveries in Asia-Pacific, Middle East and Africa region as well as divestiture of Transportation business. Following an exceptionally strong first quarter, Industrial Measurements Business Area’s net sales growth was weak at 2% totaling EUR 25.5 million. Sales growth came from continuous monitoring systems and service business.

Despite the slight decrease in net sales, Vaisala’s operating result improved to EUR 5.1 million, or 6.8% of net sales. This was a result of gross margin improvement in both business areas.

In Industrial Measurements Business Area one strategic milestone was achieved with an expansion to a new area by launching a probe for vaporized hydrogen peroxide measurement. Hydrogen peroxide is used extensively e.g. in bio-decontamination and sterilization of rooms, facilities, and equipment. In power transmission, customers’ interest in our transformer monitoring products has increased. We have several test customers whose feedback has been very positive, however testing periods are in many cases still ongoing and sales ramp-up is expected towards the end of the year. In Weather and Environment Business Area, we announced our participation in Helsinki Smart & Clean Foundation’s project in which our new air quality instruments will measure air quality in the first dense city-wide network in the world. As people living in many cities around the world suffer from bad air quality this project will be a great showcase for the advantages of more detailed location based air quality monitoring.

We continue to estimate our full-year net sales to be in the range of EUR 310–340 million and the operating result (EBIT) in the range of EUR 32–42 million.”

Kjell Forsén
President and CEO

Half Year Financial Report 2017, July 20, 2017​