Vestas' profit shrinks by a quarter

While Vestas' order intake reached a record level of 1,325 MW and unannounced contracts also increased, the wind turbine manufacturer's 2018 revenue was only marginally up, and profit declined by almost 25 percent. The price squeeze tightened once again in the fourth quarter.

Photo: PR Vestas

It will be a while before Vestas' ambition of achieving an operating margin of 10 percent becomes a reality. In 2018, the wind turbine manufacturer delivered earnings before interest and taxes, excluding extraordinary items, margin of 9.5 percent – which was the lower threshold of the percental spread 9.5-10.5, the company confirmed last month. The forecast for 2019 is between 8 and 10 percent, the turbine producer announces in its annual financial statement Thursday morning.

The report contains several disappointing figures relative to prior guidance. Among other posts, annual revenue from an unprecedented order intake of 14,214 MW, worth EUR 10.134 billion, is up only 1.8 percent from 2017. Analysts' consensus was closer to EUR 10.9 billion.

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