VWDRY Vestas Wind Systems AS (PK)

   By Dominic Chopping 
 

Vestas Wind Systems AS on Wednesday posted lower-than-expected second-quarter earnings and cut its full-year profit guidance ranges amid supply-chain constraints and cost inflation.

The Danish wind-turbine maker posted a net profit of 89 million euros ($104.4 million) in the quarter, compared with a loss of EUR7 million a year earlier, missing a company-compiled analyst consensus of EUR102 million. Revenue of EUR3.54 billion missed the EUR3.7 billion expected, it said.

Order intake rose to EUR4.5 billion from EUR3.2 billion and the total turbine and service order backlog rose to EUR48.1 billion from EUR35.1 billion, it said.

"Our Service business and wind turbine order intake grew 23% and 28% respectively year over year, which resulted in an all-time high order backlog," Chief Executive Henrik Andersen said.

"Combined with an average selling price of EUR0.79/megawatt for onshore, new offshore orders and our first preferred supplier agreement for our V236-15.0 megawatt turbine, the quarter was commercially very strong," he said.

However, with supply-chain constraints, cost inflation, Covid-19 restrictions in key markets, and the likely continued impact in the second half of the year, Vestas revised full-year guidance.

The company said it now sees revenue of EUR15.5 billion-EUR16.5 billion compared with EUR16 billion-EUR17 billion previously, while the pre-items earnings before interest and tax margin is seen at 5%-7% versus 6%-8%.

Total investments are now seen below EUR1 billion, compared with approximately EUR1 billion previously, it said.

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

(END) Dow Jones Newswires

August 11, 2021 02:54 ET (06:54 GMT)

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