Danish wind turbine maker Vestas narrowed its annual revenue and operating-margin forecasts after reporting higher third-quarter revenue and profitability. Firm turbine orders fell 27 per cent in capacity terms. Its combined turbine and service backlog nevertheless grew, while the company lowered its forecast for total investments during the full year.
Vestas narrowed its annual revenue forecast after announcing third-quarter results.[1], [2]
Danish wind turbine maker Vestas narrowed its full-year revenue forecast to between 20.5 billion and 21.5 billion euros. That compares with its previous range of 20 billion to 22 billion euros. The change followed its third-quarter results. The company also narrowed expected operating margin before special items to 7.5–8.5 per cent, from 7–9 per cent.[1]
Third-quarter revenue was approximately 5.7 billion euros, up 6 per cent from the corresponding period a year earlier. Operating profit before special items reached 483 million euros. The resulting margin was 8.5 per cent, compared with 7.8 per cent a year earlier. Firm and unconditional turbine orders nevertheless fell 27 per cent to 3,377 megawatts, with higher average selling prices.[1]
The turbine backlog stood at 35.9 billion euros at the end of September. Service agreements carried expected future contractual revenue of 42 billion euros, bringing the combined backlog to 77.9 billion euros, up 9.7 billion euros annually. Those service amounts represent future revenue under contracts. Vestas lowered its expected annual investment to approximately 1 billion euros from 1.2 billion euros.[1]
