Revenue at turbine manufacturer Vestas stood at €2.2bn in the second quarter of 2017, a decrease of 14% compared with the just under €2.6bn recorded in the same period a year earlier.
Earnings before interest and taxes (EBIT) also decreased, down €120m to €279m, with an EBIT margin of 12.6% for the quarter compared to 15.6% for the corresponding period in 2016.
Vestas said the revenue dip was “driven by lower revenue in the power solutions segment” of its business while the EBIT decrease was as a result of lower gross profit, down 22% to €484m, and an impairment on a research and development facility of €28m.
The Danish company’s turbine order backlog stood at €9.1bn at the end of the quarter with just over 2.6GW or firm and unconditional orders in the period, up from 1.7GW in the year-ago period.
Service agreements total just over €11bn at end-June 2017, the company said.
Vestas chief executive Anders Runevad said the results represented a “solid quarter”.
“In a changing market, Vestas delivered another solid quarter with healthy earnings and maintained our leadership position,” he said.
“Our second quarter results showed improved order intake across all regions, increased order backlog, strong performance in service, and half-year revenue on par with 2016.”
Vestas also announced an up to €600m share buy-back scheme that will be executed before the end of the year.
“The purpose of the share buy-back programme is to adjust Vestas’ capital structure and to meet obligations arising from share-based incentive programmes to employees of Vestas,” it said.
Image: Vestas
