Vestas loss narrows, boosting turnaround hopes

|About: Vestas Wind Systems A/S ADR (VWDRY)|By:, SA News Editor

Vestas (VWDRY +14.7%) shares soar to their highest level in two and a half years after reporting a narrower Q3 loss and significantly boosting its cash flow forecast for 2013, showing that turnaround efforts may be taking hold.

Vestas posted a net loss of €87M in Q3, an improvement from a net loss of €175M a year earlier, partly due to asset sales; revenue fell 24% to €1.44B ($1.9B) as prices fell compared with a year ago.

The Danish wind turbine maker now expects free cash flow of €500M-€700M vs. a minimum of €200M it forecast earlier, and says it should hit its cost saving target of €400M by the Q4 2014.