Vestas swings to Q2 net profit of EUR 94m

Aug 20, 2014 - Danish wind turbine maker Vestas Wind Systems A/S (CPH:VWS) returned to a second-quarter net profit of EUR 94 million (USD 125m) and lifted its earnings before interest and tax (EBIT) margin forecast for 2014.

For comparison, Vestas booked a net loss of EUR 62 million in the second quarter of 2013. In a statement on Wednesday, the company said it now expects full-year EBIT margin before special items of at least 6%, as compared to 5% forecast previously, in view of the improving cost base and business outlook for the second half of the year.

The wind turbine manufacturer reported EBIT before special items of EUR 104 million in the April-June quarter, rising from EUR 12 million thanks to better average project margins and increased project volumes.

Free cash flow came to a negative EUR 21 million, against a positive EUR 197 million a year before.

Vestas’s revenue in the reporting period improved by 13% on the year to EUR 1.34 billion, with onshore service revenue rising by 6% to EUR 244 million. The company produced and shipped 1,457 MW of turbines, 27% more than a year before.

The Danish firm said it had secured firm and unconditional orders for 1,932 MW of wind turbines during the reporting period, up 18% in annual terms. Its turbine order backlog stood at EUR 7.4 billion at the end of June, while service agreements with contractual future revenue amounted to EUR 6.5 billion.

(EUR 1.0 = USD 1.331)

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