Vestas boosts profits guidance
Danish wind group Vestas raised its guidance on full-year profitability as it delivered a “solid” financial second quarter.
Vestas now expects an Ebit (earnings before interest and tax) margin of at least 6% before special items for the full year, after previously guiding for 5%.
The company said the upgrade is based on an “improving cost base and the expected delivery plan for the second half of 2014”.
In the April to June period Vestas boosted Ebit to €104m ($138.4m) pre-special items, up by €92m on the year-earlier figure “primarily due to improved project margins and higher volume” . The Ebit margin was 7.8%.
Second quarter net profits came in at €94, reversing a €62m loss at the same stage in 2013.
Revenue was €1.34bn, up 13% on the year-ago quarter.
Second-quarter intake of firm orders reached 1,932MW, up 18%.
The value of Vestas turbine backlog stood at €7.4bn at the end of June, with another €6.5bn of service agreements in the bag.
The company produced and shipped 1,457MW of turbines in the quarter, up from 1, 144MW last time.
CEO Anders Runevad said: “With another solid quarter showing improvements in most areas, we remain focused on executing on our strategy, Profitable Growth for Vestas.”
The company left its other guidance figures for the full year unchanged at a minimum €6bn of revenue, total investment of about €250m and free cash flow of a minimum €300m.