Turnaround continues at Vestas Wind, EBIT margin forecast raised


Vestas Wind (OTCPK:VWDRY) reports Q2 net profit of €94M ($125M), compared to a loss of €62M in the same period last year, bringing the wind turbine maker halfway to its first annual profit since 2010.

Q2 EBIT rose to €104M from €12M a year ago; operating margin before special items rose to 7.8% from 1% a year earlier, and Vestas expects EBIT margin to reach at least 6% for the year, up a percentage point from previous guidance.

Q2 revenue totaled €1.34B, up 13% Y/Y from €1.185B; free cash flow was -€21M, which was expected because of a payment to the offshore wind business it divested.

Orders in the quarter gained 18% to 1,932 MW; shipments increased 27% to 1,457 MW.

Reiterates FY 2014 forecasts for revenue of at least €6B and a minimum of €300M of free cash flow.

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Comments (1)
  • georgert
    , contributor
    Comments (4) | Send Message
     
    I have a small position with VWDRY, which is the ADR for Vestas Wind Systems (VWS) traded on the Copenhagen exchange. VWDRY has done quite well up 53% year to date, vice VWS up 60% year to date. With Vestas having recently partnered with Mitsubishi Heavy Industries to help facilitate installation and maintenance it is well positioned to move ahead with sales of its new, massive, 8MW offshore wind turbines.
    25 Aug 2014, 09:01 AM Reply Like
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