Vaisala Oyj

Earnings Release • Oct 21, 2020

Disclosure 387836

Vaisala - Inside information

Vaisala updates its business outlook for 2020 and publishes preliminary net sales and operating result

Vaisala Corporation

Inside information

October 21, 2020 at 9:00 a.m. (EEST)

Vaisala updates its business outlook for 2020 and publishes preliminary net sales and operating result

Vaisala Corporation narrows its net sales estimate and increases its operating result (EBIT) estimate for 2020. Vaisala estimates its full-year 2020 net sales to be in the range of EUR 370–390 million and operating result (EBIT) to be in the range of EUR 40–48 million.

In January–September 2020, Vaisala’s preliminary net sales were EUR 273 million and preliminary operating result (EBIT) was EUR 33 million.

The global economic downturn has affected especially airports customer segment and emerging markets. Weather and Environment business area has been missing larger project orders. Orders received have decreased the most in Latin America, APAC and MEA. Some project deliveries have been delayed due to restrictions related to COVID-19 pandemic. Industrial Measurements business area has not met growth targets for industrial instruments and liquid measurements products due to volatile market situation during the second and third quarters. Orders received have decreased in EMEA region and been flat in Americas and APAC regions. Therefore, net sales for full-year 2020 is now estimated to be in the range of EUR 370–390 million.

Despite the challenging operating environment, Vaisala’s performance has been strong through-out the year and during the third quarter development was better than expected. Digital services in Weather and Environment business area and product and service businesses in Industrial Measurements business area improved their gross margin. Decrease in operating expenses caused by the prolonged COVID-19 pandemic, have improved operating result more than previously estimated. Consequently, operating result (EBIT) for 2020 is now estimated to be in the range of EUR 40–48 million.

Visibility continues to be weak and poses significant uncertainties for the rest of the year as the COVID-19 pandemic has entered the second phase. Fourth quarter has typically been seasonally important for Vaisala, particularly for Weather and Environment business area. Therefore, the ranges in the business outlook remain still wide. Market outlook for 2020 has remained unchanged from the Half Year Financial Report released on July 21, 2020.

Vaisala’s previous business outlook for 2020 as published on July 21, 2020 was:

Vaisala estimates its full-year 2020 net sales to be in the range of EUR 370–405 million and its operating result (EBIT) to be in the range of EUR 34–46 million.

Vaisala will publish its Interim Report January–September 2020 on Tuesday, October 27, 2020.

Additional information

Kaarina Muurinen, CFO

Tel. +358 40 577 5066, kaarina.muurinen@vaisala.com

**Distribution

**Nasdaq Helsinki

Key media

vaisala.com

Vaisala is a global leader in environmental and industrial measurement. Building on over 80 years of experience, Vaisala provides observations for a better world. We are a reliable partner for customers around the world, offering a comprehensive range of innovative observation and measurement products and services. Headquartered in Finland, Vaisala employs approximately 1,850 professionals worldwide and is listed on the Nasdaq Helsinki stock exchange. vaisala.com twitter.com/VaisalaGroup