Danish wind-turbine maker Vestas Wind Systems A/S (VWS.KO) on Friday reported a 38% fall in first-quarter net profit amid weaker deliveries during the first few months of the year, but beat analyst expectations and said it is stocking up for brisk business during the remainder of 2016.
Net profit for the first quarter fell 38% to 35 million euros ($39.85 million), beating analyst expectations of EUR30 million. Revenue fell 4% to EUR1.46 billion, against expectations of EUR1.44 billion.
Vestas said first-quarter order intake was a record-high at 2,403 megawatts, partly boosted by a 1,000-megawatt order in Norway, and said it had the largest-ever combined order backlog on wind turbines and maintenance services.
The company said it had delivered 1,214 megawatts to customers in the quarter, a 57% decrease from a year earlier, and that cash flow was negative at the end of a quarter.
"Free cash flow, although at negative levels, was in line with expectations as we build up inventory preparing for a busy remainder of 2016," said Vestas Chief Executive Anders Runevad.