Vestas Posts Q3 Profit, Lifts 2014 Guidance

Vestas Wind Systems A/S VWSYF posted a net profit in the third quarter and lifted its outlook for the full year. Vestas swung to a quarterly net profit of 102 million euros ($126.42 million), versus a year-ago net loss of EUR87 million. Earnings per share came in at 0.46 euros, versus a year-ago loss of 0.43 euros per share. Its revenue climbed 26% to EUR1.81 billion. The company's EBIT, before special items, jumped 96 million euros y/y to 163 million euros in the quarter. Order intake fell 24% y/y to 1,170 megawatts in the quarter. Year-to-date, its order intake rose 12% y/y. Vestas now expects 2014 revenue of EUR6.4 billion to EUR7 billion, versus earlier forecast of minimum EUR6 billion. It now expects EBIT of 7% to 8%, compared to previous outlook of minimum 6%. The company projects cash-flow of EUR400 million to EUR700 million, versus earlier forecast of minimum EUR300 million. Group President & CEO Anders Runevad said: ”The third quarter of 2014 continued the trend with improvements in several operational areas and thus highlights that execution remains on track for our strategy, Profitable Growth for Vestas. Based on the expected delivery plan for the remainder of the year and the improved cost base, we raise our guidance on revenue, EBIT and cash flow.” Vestas shares fell 1.17% to close at $33.70 yesterday.