Article
Vestas (VWS.CO), opens new tab, the world's largest maker of wind turbines, reported on Thursday a surprise adjusted operating loss for the first quarter, hit by lower project deliveries, but stuck to its earnings guidance for the year. It reported an operating loss before special items of 68 million euros ($73 million) against a year-earlier profit of 40 million, on a 5% drop in sales. The mean forecast in a poll of analysts compiled by Vestas was for a 25 million euro profit.
Vestas (VWS.CO), opens new tab, the world's largest maker of wind turbines, reported on Thursday a surprise adjusted operating loss for the first quarter, hit by lower project deliveries, but stuck to its earnings guidance for the year. It reported an operating loss before special items of 68 million euros ($73 million) against a year-earlier profit of 40 million, on a 5% drop in sales. The mean forecast in a poll of analysts compiled by Vestas was for a 25 million euro profit.
Summary
- Q1 loss 68 mln euros vs forecast profit of 25 mln euros
- CFO says earnings back-end loaded, confident on outlook
- Shares down 3%
COPENHAGEN - Vestas (VWS.CO), opens new tab, the world's largest maker of wind turbines, reported on Thursday a surprise adjusted operating loss for the first quarter, hit by lower project deliveries, but stuck to its earnings guidance for the year.
It reported an operating loss before special items of 68 million euros ($73 million) against a year-earlier profit of 40 million, on a 5% drop in sales. The mean forecast in a poll of analysts compiled by Vestas was for a 25 million euro profit.
"They delivered fewer wind turbines than expected," Sydbank analyst Jacob Pedersen said.
J.P. Morgan analysts …
... more
[truncated due to possible copyright]
Summary
- Q1 loss 68 mln euros vs forecast profit of 25 mln euros
- CFO says earnings back-end loaded, confident on outlook
- Shares down 3%
COPENHAGEN - Vestas (VWS.CO), opens new tab, the world's largest maker of wind turbines, reported on Thursday a surprise adjusted operating loss for the first quarter, hit by lower project deliveries, but stuck to its earnings guidance for the year.
It reported an operating loss before special items of 68 million euros ($73 million) against a year-earlier profit of 40 million, on a 5% drop in sales. The mean forecast in a poll of analysts compiled by Vestas was for a 25 million euro profit.
"They delivered fewer wind turbines than expected," Sydbank analyst Jacob Pedersen said.
J.P. Morgan analysts said the report showed a slow start to the year. Vestas' shares were down 3% at 0813 GMT, taking a year-to-date drop to 17%.
Chief Financial Officer Hans Martin Smith said Vestas typically made more money later in the year, and so was not concerned by the fall in sales and deliveries.
"We have some higher prices pulling in the right direction. It's all about profitability for us," Smith said, adding he was satisfied with the higher value of the delivered projects.
Turbine makers like Vestas and Siemens Gamesa (ENR1n.DE), have increased prices and turned down projects where payments were too low, staunching a trend of stagnant or falling prices in recent years.
Vestas's project deliveries to customers fell to 1,720 megawatts (MW) from 2,317 MW a year earlier, below analysts' average estimate of 2,142 MW, but its order intake slightly beat expectations.
The group repeated a full-year guidance for an operating margin before special items of 4-6% on sales of 16-18 billion euros.
Vestas returned to profit last year from a loss in 2022 when higher raw material costs hit margins and supply chain problems hampered its ability to deliver orders. It is still battling to fully overcome the challenges, however.
($1 = 0.9335 euros)