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Vestas Wind Systems revises full-year guidance downwards
Af Jens Nymark
18-08-2010
09:31
Just as it was expected that Vestas would meet its 2010 expectations CEO Ditlev Engel now downgrades the expectations for revenue and profit margin. Vestas now expects revenue to amount to EUR 6 billion against the previous forecast of EUR 7 billion. Also the EBIT margin is revised downwards and expected to be 5-6 per cent against the previous forecast of 10-11 per cent.
»The downgrade is made because expected, but still not concluded orders for delivery to the USA, Spain and Germany will now take place at such a late date in 2010 that they will not be recognised as income this year,« Vestas wrote in its interim financial report for the second quarter 2010. For the second quarter Vestas achieved a profit after tax of EUR -119 million and EBIT of EUR -148 million.
A record second-quarter order intake of 3,000 MW, on a level with the order intake for the whole of 2009, was not able to prevent the downgrading. But Vestas maintains its expectations for new orders of 8,000-9,000 MW for 2010. The value of the backlog of firm and unconditional orders amounted to EUR 5.2 billion at June 30. The disappointing revenue means that net working capital is now expected to be 15-20 per cent of the 2010 revenue instead of 15 per cent.
»The downgrade is made because expected, but still not concluded orders for delivery to the USA, Spain and Germany will now take place at such a late date in 2010 that they will not be recognised as income this year,« Vestas wrote in its interim financial report for the second quarter 2010. For the second quarter Vestas achieved a profit after tax of EUR -119 million and EBIT of EUR -148 million.
A record second-quarter order intake of 3,000 MW, on a level with the order intake for the whole of 2009, was not able to prevent the downgrading. But Vestas maintains its expectations for new orders of 8,000-9,000 MW for 2010. The value of the backlog of firm and unconditional orders amounted to EUR 5.2 billion at June 30. The disappointing revenue means that net working capital is now expected to be 15-20 per cent of the 2010 revenue instead of 15 per cent.
*****||*****Vestas Wind Systems revises full-year guidance downwards*****||*****Just as it was expected that Vestas would meet its 2010 expectations CEO Ditlev Engel now downgrades the expectations for revenue and profit margin. Vestas now expects revenue to amount to EUR 6 billion against the previous forecast of EUR 7 billion. Also the EBIT margin is revised downwards and expected to be 5-6 per cent against the previous forecast of 10-11 per cent.*****||*****
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