Vestas Wind Systems A/S Q1 2010 Earnings Call TranscriptApr. 30, 2010
Vestas Wind Systems A/S develops, manufactures and markets wind turbines that generate electricity. The company also installs the turbines and offers follow-up and maintenance services of the installations. Vestas produces the windmills and its components through subsidiaries and associated... More
Monday, Feb 36:49 PM
Monday, Feb 36:49 PM| Comment!
- Vestas Wind Systems (VWDRY) reports its first quarterly profit since 2011 and says it plans to raise new financing by issuing shares and replacing a credit line.
- Q4 net income was €218M ($295M) while revenue fell to ~€2.35B from €2.5B, but both figures easily beat analyst expectations.
- Vestas says it expects revenue of at least €6B in 2014, margin of at least 5% on EBIT and a minimum of €300M of free cash flow.
- The company plans to sell as many as 20.4M new shares through a private placement at market price, equivalent to nearly 10% of existing stock, and arranges a five-year €850M revolving credit facility which replaces an existing €650M line.
- Vestas “delivered in style," Sydbank analyst Jacob Pedersen says, adding that the share sale is “the best way, the cheapest way and the right tactic,” to raise money.
Monday, Jan 62:15 PM
Monday, Jan 62:15 PM| 1 Comment
- Vestas Wind Systems (VWDRY +6%) raises its cash flow target for the third time in a year, as the wind turbine manufacturer shows further signs that its recovery is taking hold.
- Vestas says its free cash flow last year would total ~€1B vs. a previous forecast of €500M-€700M and a year ago expecting cash flow just above zero.
- Vestas enjoyed one of its busiest-ever months for orders in December as it unveiled a number of large U.S. deals involving more than 400 turbines from the likes of Enel Green Power and First Wind.
Thursday, Dec 262013, 2:13 PM
Thursday, Dec 262013, 2:13 PM| 1 Comment
- Wind turbine project developers are rushing to begin construction on projects before year's end, and thereby guarantee the projects are eligible for a tax credit (worth $0.023 per kWh) that expires on Jan. 1.
- However, this isn't the first time construction has picked up ahead of a subsidy expiration. And since previous deadlines required projects to be completed (rather than just started) before a subsidy expired, the pressure on developers isn't quite as intense this time around.
- Over the last two decades, Congress has allowed a wind tax credit to expire several times before later renewing it. Construction activity has generally fallen sharply following an expiration.
- Wind turbine maker Vestas (VWDRY) has scored a slew of U.S. orders ahead of the deadline. The deadline also has implications for struggling turbine component/software maker American Superconductor (AMSC -1.3%).
Wednesday, Dec 182013, 11:19 AM
Wednesday, Dec 182013, 11:19 AM| Comment!
- Vestas Wind Systems (VWDRY +4.1%) wins a 350 MW wind turbine order from Enel Green Power (ELPSY) in Oklahoma, its fourth U.S. deal in just over three months following eight months of inactivity.
- Vestas will supply 175 of its V100 2 MW turbines to Enel's U.S. unit and may add another 636 MW.
- A renewed U.S. tax credit, which pays wind-farm owners 2.3 cents for every KW-hour of power they produce, now applies to all projects that begin construction before the end of 2013; earlier this week, Siemens reported a 1,050 MW order from Warren Buffett's MidAmerican Energy.
Tuesday, Dec 172013, 3:24 PM
Tuesday, Dec 172013, 3:24 PM| 3 Comments
- Broadwind Energy (BWEN +14.4%) is set to be a major beneficiary of Siemens $1B-plus power contract with MidAmerican Energy, supplying the towers for the 448 wind turbines that will equip five wind power projects in Iowa.
- The move by Warren Buffett’s utility company shows how a drop in equipment costs is making renewable energy more competitive with power from fossil fuels - a boost for suppliers including BWEN, Siemens (SI), GE and Vestas (VWDRY, VWSYF), and a threat to coal miners (KOL).
- MidAmerican expects to close some coal-powered plants in 2015 as the price of wind power (FAN) continues to slide, an exec says.
Wednesday, Nov 62013, 11:35 AM
Wednesday, Nov 62013, 11:35 AM| 1 Comment
- 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.
Wednesday, Oct 92013, 11:58 AM
Wednesday, Oct 92013, 11:58 AM| Comment!
- Shares in Danish wind turbine maker Vestas (VWDRY.PK -3.9%) tumble as investors reflect their disappointment at the sale of six manufacturing units for just €1, implying a writedown of €50M on the assets.
- Vestas says it made the sale "because we operate in a volatile market with steep ups and downs, and we realised that fixed costs were too high, so we needed to outsource non-core activities and focus on core competencies."
Friday, Sep 272013, 8:26 AM
Friday, Sep 272013, 8:26 AM| Comment!
- Vestas Wind Systems (VWDRY.PK) forms an offshore wind joint venture with Mitsubishi Heavy Industries (MHVYF.PK), sealing a deal that has been in the making for more than a year.
- Mitsubishi is expected to provide the venture with an immediate €100M ($135M) cash injection, followed by another €200M if certain targets are met.
- Vestas will transfer the development of its V164-8.0 MW turbine, its V112 turbine offshore order book, existing offshore service contracts and ~300 employees to the venture.
- The deal should ease some of the fears about Vestas' financial health and ability to compete in the market for offshore wind turbines with competitors with deeper pockets such as Siemens (SI).
Thursday, Sep 262013, 5:40 PM
Thursday, Sep 262013, 5:40 PM| Comment!
- Danish wind-turbine maker Vestas Wind Systems' (VWDRY.PK) major supply deal with Duke Energy (DUK), announced earlier today, may be a sign the U.S. wind-power market may be gaining steam.
- Vestas will supply 400 MW of power-generating turbines for two wind farms DUK plans to build near Brownsville, Tex., and sell the electricity to municipal utility Austin Energy under two 25-year contracts.
- After a slow start this year, the U.S. wind power market has been picking up as utilities look to sign new contracts for renewable energy, says Chris Brown, president of Vestas' U.S. business.
- Vestas' ADRs +7.5% today; DUK +0.6%.
- ETF: FAN.
Wednesday, Aug 212013, 7:54 AM
Wednesday, Aug 212013, 7:54 AM| Comment!
- Vestas Wind Systems (VWDRY.PK) names former Ericsson executive Anders Runevad as CEO, replacing long-standing CEO Ditlev Engel, effective Sept. 1.
- The announcement comes as Vestas reports its Q2 net loss widened to €62M ($83.2M) from a loss of €8M a year earlier, following a 26% decline in revenue to €1.19B.
- For the full year, Vestas forecasts an operating profit margin of 1% on revenue of €5B, due in part to an expected recovery in the U.S. market, which was responsible for nearly 25% of 6,039 wind turbines delivered in 2012 but just nine out of 877 delivered in Q2.
- Says it will not sell its tower factory in Pueblo, Colo.; machining and casting units are expected to be sold but their value has been further written down.
Wednesday, Feb 62013, 8:29 AMVestas Wind Systems (VWDRY.PK) says its full-year 2012 net loss widened to €963M vs. a loss of €166M in 2011 and analyst expectations of a €192M net loss. Revenue came in at €7.22B vs. €5.84B a year ago and analyst consensus of €6.91B. Cuts 2013 shipment guidance to 4-5 GW of capacity from previous 5 GW, and made no forecast on profitability. |Wednesday, Feb 62013, 8:29 AM| Comment!
Wednesday, Jan 162013, 10:43 AMThe U.S. wind industry is planning new wind farms again after Congress renewed subsidies, but this year's projects seem unlikely to match 2012 megawatt records. Duke Energy (DUK) is looking at "hundreds of megawatts" of new wind farms, but others are less optimistic; Siemens (SI) notes "the U.S. energy market remains very competitive with record low natural gas prices and slow energy demand growth." |Wednesday, Jan 162013, 10:43 AM| 1 Comment
Tuesday, Nov 272012, 10:56 AMTalks between Vestas (VWDRY.PK) and Mitsubishi Heavy Industries to build the biggest offshore wind turbine are bolstered by securing €900M in financing yesterday through 2015. Vestas’ negotiating power is now “slightly improved... It doesn’t increase the financial flexibility of Vestas, but it removes the short-term default risk." Shares -9.5% after jumping 22% yesterday. |Tuesday, Nov 272012, 10:56 AM| Comment!
Wednesday, Nov 72012, 8:31 AMVestas Wind Systems (VWDRY.PK) reports a Q3 net loss of €175M ($225.3M) vs. a net loss of €60M in the year-ago period and revenues of €1.99B vs. €1.34B Y/Y. The world's largest manufacturer of wind turbines says it will step up its cost-cutting efforts and reduce its headcount further during 2013 through divestments, a hiring freeze and layoffs. Shares -12% in Copenhagen. |Wednesday, Nov 72012, 8:31 AM| Comment!
Friday, Oct 122012, 7:08 AM
Friday, Sep 282012, 9:41 AMThe U.S. wind turbine market could blow away without continuation of a politically charged tax credit, a top official of Danish turbine maker Vestas (VWDRY.PK) tells FT, warning of 75%-95% shrinkage in the U.S. market for wind power if the tax credit for wind power is allowed to expire at the end of the year. |Friday, Sep 282012, 9:41 AM| 7 Comments