VWDRY Vestas Wind Systems AS (PK)

By Dominic Chopping

Vestas Wind Systems AS on Wednesday cut full-year margin guidance amid accelerating transport and raw-material costs as well as component shortages, and announced that Chief Financial Officer Marika Fredriksson is stepping down.

Hans Martin Smith, currently CFO of Vestas Northern & Central Europe, will take over as group CFO by March 1, it said.

The Danish wind-turbine maker posted a net profit of 122 million euros ($141.3 million) in the quarter from EUR284 million a year earlier, missing a company-compiled analyst consensus of EUR236 million. Revenue rose to EUR5.54 billion while pre-items earnings before interest and tax fell to EUR325 million.

Order intake slipped to EUR3.0 billion from EUR3.1 billion, while the total turbine and service order backlog rose to EUR47.3 billion from EUR33.9 billion.

"Supply chain instability and high component, material and transport costs [are] expected to last throughout 2022," Chief Executive Henrik Andersen said.

Earnings were also weighed by additional warranty provisions of EUR50 million to cover previously-announced blade repairs and upgrades, it added.

Vestas still expects revenue of EUR15.5 billion-EUR16.5 billion, but the pre-items EBIT margin is anticipated at around 4% from 5%-7% previously.

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

(END) Dow Jones Newswires

November 03, 2021 04:26 ET (08:26 GMT)

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