The world’s largest wind turbine maker said it now expects EBIT (earnings before interest and tax) margin before special items for the year between 5-7 per cent, down from an earlier estimate of 7-9 per cent
Denmark’s Vestas reported a worse-than-expected quarterly operating profit on Tuesday and reintroduced its full-year sales guidance while lowering its profit margin outlook.
The world’s largest wind turbine maker said it now expects EBIT (earnings before interest and tax) margin before special items for the year between 5-7 per cent, down from an earlier estimate of 7-9 per cent.
“The global pandemic and economic downturn will continue to create uncertainty in 2020, but we remain confident in our ability to ensure business continuity across our value chain and are therefore reintroducing guidance for 2020,” CEO Henrik Andersen said in a statement.
Despite strong sales growth of 67 per cent in the second quarter, Vestas posted an EBIT margin before special items of 1 per cent, down from 6 per cent a year earlier.
That was mainly due to an extraordinary warranty provision of 175 million euros, Vestas said.
Vestas posted a second-quarter operating profit before special items of 34 million euros ($39.96 million), well below the 127.4 million expected by analysts in a Refinitiv poll.
Source: Reuters
