Vaisala will exit certain Transportation products and field services

Stock Exchange Releases

Vaisala Corporation
Stock Exchange Release
February 10, 2016 at 2:15 p.m.

Vaisala will exit certain Transportation products and field services

Vaisala has made the decision 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 the market 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.

"We prefer to divest these businesses to parties, who could offer continuity to the employees and are better positioned to further develop the business. However, should this not be possible we plan to close down these businesses during this year. Vaisala aims to improve Transportation business profitability by focusing on Vaisala platform products, providing high value customer support and expanding information services. Vaisala will continue to offer and further develop field services to customers in the United Kingdom. The FAA and U.S. airports remain important weather instrument customers for the Transportation business unit. Our International Civil Aviation Organization (ICAO) AWOS business outside of the United States is not affected by this change," says Antero Jarvinen, Head of Transportation business unit.
These changes are expected to lead to a reduction of approximately 60 full time equivalents mainly in the United States. Estimated annual cost savings are EUR 6 million. The savings are expected to contribute to 2017 profitability. The related one-time costs will be reported in the first quarter 2016 Interim Report and are estimated to be EUR 3 million.

Further information
Kjell Forsén, President and CEO
Tel. +358 9 8949 2202

NASDAQ Helsinki
Key media

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.