Vestas' Q2 net profit rises 33% y/y

Danish wind turbine maker Vestas Wind Systems A/S (CPH:VWS) on Wednesday reported a second-quarter net profit of EUR 125 million (USD 138.3m), up by 33% year-on-year, and reaffirmed its outlook for the full 2015.

Earnings before interest and tax (EBIT) before special items rose by 39% to EUR 145 million, with EBIT margin before special items going up by 5 percentage points to 8.3%.

Free cash flow amounted to EUR 183 million, which compares to free cash outflow of EUR 21 million in the second quarter of 2014. The figure was strongly impacted by a rise in the cash flow from operating activities, Vestas noted.

In April-June 2015, total revenue jumped by 30% to EUR 1.75 billion. The improvement is largely attributable to higher megawatt (MW) delivery volumes, partially offset by mix and scope effects in the period. Currency effects of EUR 140 million also helped for the rise.

Vestas’ Q2 intake of firm and unconditional wind turbine orders surged by 56% to 3,018 MW. Its combined order backlog reached EUR 16.9 billion as at June 30, 2015. This includes EUR 8.8 billion of wind turbine orders and EUR 8.1 billion worth of service agreements. The combined amount is EUR 3 billion higher than the one from the same period a year earlier and is the company’s largest ever, it pointed out.

For the full year, Vestas maintained its previous guidance for a revenue of at least EUR 7.5 billion, an EBIT margin before special items of minimum 8.5% and free cash flow of at least EUR 600 million.

(EUR 1.0 = USD 1.107)

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