Vaisala Corporation
Inside information
July 17, 2023, at 9:00 a.m. (EEST)
Inside information: Vaisala adjusts its net sales estimate and decreases its operating result estimate for 2023 and publishes preliminary orders received, net sales, gross margin, and operating result for Q2 2023
Vaisala Corporation adjusts its net sales estimate and decreases its operating result estimate for 2023. Vaisala now estimates its full-year 2023 net sales to be in the range of EUR 530-560 million and operating result (EBIT) to be in the range of EUR 65-75 million.
Uncertainty in the business environment originating from weak economic outlook and high inflation has slowed down industrial activity especially in the US and China. Consequently, second quarter demand for products and services as well as net sales for Industrial Measurements business area were lower than expected due to customers postponing their investment decisions. Price competition was more intense than expected especially in China, which burdened Industrial Measurements business area's gross margin in addition to unfavorable product mix.
Demand for products and solutions for Weather and Environment business area continued strong especially in roads and automotive as well as in renewable energy market segments. Growth of subscription sales also continued very strong. Higher share of more profitable product business and growth of subscription sales improved business area's gross margin.
Investments in sales and marketing as well as in R&D and IT system renewal continued in both business areas increasing operating expenses even though more moderately than during previous quarters. Negative impact of additional costs related to component spot purchases decreased during the second quarter according to expectations.
Vaisala's second quarter 2023 and January-June 2023 preliminary orders received, net sales, gross margin, and operating result (EBIT) were:
Orders received
| EUR million | Q2/2023 | Q2/2022 | 1-6/2023 | 1-6/2022 |
| Industrial Measurements | 52.6 | 56.2 | 112.6 | 111.0 |
| Weather and Environment | 76.6 | 67.2 | 148.7 | 131.2 |
| Vaisala | 129.3 | 123.4 | 261.3 | 242.2 |
Net sales
| EUR million | Q2/2023 | Q2/2022 | 1-6/2023 | 1-6/2022 |
| Industrial Measurements | 52.8 | 54.7 | 115.8 | 107.8 |
| Weather and Environment | 78.0 | 65.9 | 146.8 | 131.6 |
| Vaisala | 130.8 | 120.5 | 262.6 | 239.3 |
Gross margin
| % | Q2/2023 | Q2/2022 | 1-6/2023 | 1-6/2022 |
| Industrial Measurements | 59.7 | 63.2 | 61.3 | 63.7 |
| Weather and Environment | 51.9 | 48.8 | 51.1 | 49.2 |
| Vaisala | 55.1 | 55.3 | 55.6 | 55.7 |
Operating result (EBIT)
| EUR million | Q2/2023 | Q2/2022 | 1-6/2023 | 1-6/2022 |
| Industrial Measurements | 6.8 | 11.5 | 21.8 | 26.1 |
| Weather and Environment | 4.9 | -1.1 | 3.2 | 1.8 |
| Vaisala | 11.9 | 10.3 | 25.2 | 27.9 |
Vaisala's previous business outlook for 2023 as published on May 5, 2023, was:
Vaisala estimates its full-year 2032 net sales to be in the range of EUR 530-570 million and its operating result (EBIT) to be in the range of EUR 70-85 million.
Vaisala will publish its Half Year Financial Report January-June 2023 on Friday, July 28, 2023.
Additional information
Paula Liimatta
+358 9 8949 2020, ir@vaisala.com
Distribution
Nasdaq Helsinki
Key media
vaisala.com
Vaisala is a global leader in weather, environmental, and industrial measurements. Building on over 85 years of experience, Vaisala provides observations for a better world, with space-proof technology even exploring Mars and beyond. 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 over 2,000 professionals worldwide and is listed on the Nasdaq Helsinki stock exchange. vaisala.com twitter.com/VaisalaGroup linkedin.com/vaisala
