Vestas Backs Guidance As 3Q Profit Beats Expectations

By Dominic Chopping

Vestas Wind Systems AS on Wednesday backed its full-year guidance after posting a smaller-than-expected drop in third-quarter net profit.

The Danish wind-turbine maker posted a net profit attributable to shareholders of 284 million euros ($332 million), from EUR306 million a year earlier, beating an analyst consensus of a EUR268 million profit according to a FactSet poll.

Revenue rose 31% to EUR4.77 billion compared with the consensus view of EUR4.05 billion, driven by a higher volume of wind turbine deliveries in the U.S.

Order intake fell to EUR3.1 billion from EUR3.5 billion, while the total turbine and service order backlog rose to EUR33.9 billion from EUR32.8 billion.

"Vestas achieved its highest ever deliveries in a single quarter...although the widespread impact of Covid-19 continued in the third quarter," Chief Executive Henrik Andersen said.

"The demand for wind energy remained strong in the quarter, even though green stimulus packages are yet to materialise."

Earnings took a hit from warranty provisions of EUR146 million in the third quarter, as well as logistical challenges and supply-chain bottlenecks, amplified by the Covid-19 situation, it said.

Vestas backed its full-year guidance, expecting full-year revenue at EUR14 billion-EUR15 billion with an earnings before interest and tax margin before special items of 5%-7%.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

November 04, 2020 03:22 ET (08:22 GMT)

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