Denmark’s wind turbine maker Vestas Wind Systems A/S (CPH:VWS) today reported a first-quarter (Q1) net profit of EUR 35 million (USD 40m) and record-high order intake of 2,403 MW.
Net profit declined from EUR 56 million a year ago as a result of negative financial items, such as currency effects, and loss from the offshore joint venture with Mitsubishi Heavy Industries (TYO:7011). The latter effect can be mainly attributed to "a significant increase in amortisation of the 8 MW platform", the Danish company said.
Free cash flow was negative at EUR 296 million, in line with expectations as Vestas is building up inventory preparing for a busy remainder of 2016, said CEO Anders Runevad.
Earnings before interest and tax (EBIT) before special items grew by EUR 6 million to EUR 85 million. The EBIT margin before special items also improved to 5.8% from 5.2%. Revenue inched down by 4% on the year to EUR 1.46 billion.
Vestas has a total backlog of EUR 18 billion, including EUR 8.6 billion in wind turbine orders and EUR 9.4 billion of service agreements. It affirmed its guidance for 2016 revenues of at least EUR 9 billion, EBIT margin before special items of 11% and free cash flow of at least EUR 600 million.