Denmark-based, Vestas Wind Systems A/S (Copenhagen: VWS.CO), the world’s leading manufacturer of wind turbines, reports significant revenue and EBIT increases for the third quarter of 2007.
Vestas generated Q307 revenue of EUR 1.150m versus EUR 842m for Q306, achieving an EBIT of EUR 102m, up from EUR 40m in 2006, thus lifting the EBIT margin from 4.8% to 8.9% over the past 12 months.
The company’s profit after tax for Q3 was 66m EUR and 134m EUR for nine months, as compared to 18m EUR 3Q06 and 24m EUR for nine months ending September 2006.
Vestas shipped 1,245 MW of turbines during the quarter as against 1,060 MW the year before, an increase of 17%. As of September 30, its order backlog amounted to EUR 4.1bn, against EUR 3.1bn in 2006.
Europe contributed 52% to Q3 revenues, the Americas 37% and Asia/Pacific 11%.
Vestas attributes its results to an overall higher level of activity, higher prices and the many efficiency-improving measures taken since May 2005. The company expects revenue to continue to increase in Q4 to approx EUR 4.5bn, and forecasts the EBIT margin at about 8%. Net working capital is expected to represent a maximum of 10% of annual revenue, as compared with the previous maximum forecast of 15 per cent.
For 2008 the company forecasts a 25% increase in revenue to about EUR 5.7bn, and an EBIT margin increase to 10-12%. Net working capital is expected to represent a maximum of 15%, as compared to a maximum of 20% of annual revenue in 2007.
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