Vestas profit lags, keeps 2018 forecast
The global wind power industry is undergoing a period of painful readjustment as governments from Europe to Latin America rein in subsidies and turn to competitive tenders, putting pressure on prices throughout the supply chain.
COPENHAGEN: Wind turbine maker Vestas reported a bigger-than-expected fall in first-quarter operating profit on Friday hit by fierce competition and adverse currency factors.
The global wind power industry is undergoing a period of painful readjustment as governments from Europe to Latin America rein in subsidies and turn to competitive tenders, putting pressure on prices throughout the supply chain.
After recovering strongly from brink of bankruptcy in 2012, Vestas’ shares have dropped 30 percent over the past year due to uncertainty about future profitability.
“The wind energy industry continues to drive down electricity prices and further enable integration of sustainable energy, creating a larger long-term market for wind power solutions,” said Chief Executive Anders Runevad in a statement.
“In the short term, however, this has entailed fierce competition that has impacted profitability in the sector.”
Vestas’ main rival Siemens Gamesa said on Friday its order book remained steady in the second quarter, citing record onshore order intake and stabilising prices.
Vestas’ earnings before interest and tax (EBIT) of 126 million euros ($150.81 million) came in below the 137 million expected by analysts in a Reuters poll.
Vestas still expects revenue of 10-11 billion euros and EBIT margin before special items of 9-11 percent this year.
Orders in the quarter came in at 1,629 megawatts (MW) with a value of 1.2 billion euros, below the 1,730 MW at a price of 1.3 billion expected by analysts.
($1 = 0.8355 euros)
Source: reuters
