Dollar appreciation against the euro a major boost to results
After a weak start to the year, Vaisala has reported a 12% year-on-year increase in net sales to 77m during the quarter from April to June 2015.
The Controlled Environment Business Area continued its good performance as its net sales increased by 25% year-on-year to 23.7m. Net sales developed positively in all regions, with EMEA growing fastest at comparable exchange rates. Also good supply chain performance boosted delivery volumes, according to President and CEO Kjell Forsιn.
In the second quarter of 2015 total orders received increased by 13% to 79.9m; Controlled Environment Business Area's orders received increased by 30% with the increase coming from all regions.
Operating result in the second quarter was 4.1m overall, an increase of 96% or 2.0m on the previous year. The good result was due to increased net sales but was partially weakened by an increase in operating expenses due to depreciated euro.
Controlled Environment Business Area's operating result was 4.0m, up on the previous year's 1.5m following the good sales performance and positive gross margin development.
The new business organisation structure was put in place at the beginning of the second quarter and the transition was extremely smooth, according to Forsιn. The new organisational structure was well received and the benefit of the simpler structure and clear responsibility areas is recognised. 'The reduction in workforce has been implemented and we are convinced that we are able to achieve the targeted cost saving of 2m during this year,' he said.
At the end of June 2015, Controlled Environment Business Area's order book was 8.1m, an increase of 57% compared with the previous year. The increase came from all regions. The division's operating result was 4.0m, up by 162% on the previous year, due to good sales performance and positive gross margin development.
In January-June 2015, Vaisala' orders received were 146.9m and increased by 6% compared with the previous year. The increase came from Americas. The first half of the year saw Controlled Environment Business Area's orders rise by 30% over H1 2014 to 47.8m. The growth came from all regions. Net sales were up 21% to 45.1m. At comparable exchange rates the net sales would have been 40.5m and the increase 3.2m or 9% from previous year. The positive exchange rate effect was 4.7m, which was mainly caused by dollar appreciating against the euro.
In January-June 2015, Controlled Environment Business Area's operating result was 7.4m, double that of the previous year. Gross margin was 58.7% and the increase was mainly due to higher sales volumes and related improvement in scale economies as well as to currency effects.