Vestas reported a dip in revenue and earnings in the third quarter of 2017 against a market background described as having “accelerated competition and decreased profitability”.
The Danish manufacturer posted a 6% decrease in revenue to €2.74bn year on year while operational profit was €355m, down €78m or 18%. EBIT margin was 12.9% compared with 14.9% in the same period of 2016.
Order intake in the three months totalled 2615MW, up 48% year on year, and the value of the turbine backlog was €8.8bn. Service agreements worth €11.4bn are in place, which when combined with the orders are €3.1bn up on the same figures last year.
Vestas raised its lower-end revenue forecast from €9.25bn to €9.5bn while trimming its top-end EBIT margin expectation from 14% to 13%. “The adjustments are based mainly on delivery visibility for the remainder of the year,” said the manufacturer.
Chief executive Anders Runevad (pictured) said: “Vestas delivered increased order intake and healthy earnings in a market that is seeing accelerated competition and decreasing profitability.”
He added: “Our order backlog and service revenue both increased 18% year-on-year, while nine-month revenue is on par with 2016. As the market continues to evolve at a fast pace, we remain focused on continuing our leadership position by executing our strategy and increasing efficiency.”
Vestas shares were down more than 15% in early trading at Dkr437.8.
Image: Vestas
Vestas ‘healthy’ despite headwinds
UPDATE: Shares down following decline in third quarter figures
By EBS