Vestas swings to a Q1 net profit, its first in five years

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

Vestas Wind Systems (VWDRY) reports a Q1 net profit for the first time in five years, earning a net profit of €2M ($2.77M) after a €151M loss in the prior-year quarter and beating analysts’ expectations of an operating loss by reporting a profit of €27M.

Q1 operating margin before special items was 3.1%, up from -9.9% a year earlier, and free cash flow improved by €36M to -€24M.

Reaffirms full-year guidance of an operating profit margin of at least 5% before special items and a free cash flow of a minimum of €300M.

The results mark a turnaround from two years ago, when dwindling liquidity reserves and a steep decline in demand threatened its future, but the wind turbine maker appears to have regained its footing after thousands of jobs cuts and a series of divestments.