Vestas, the world’s largest producer of wind turbines reported strong financial results for 2007,even though its market share decreased in a year that saw remarkable growth in the worldwide wind power market.
The company said revenue rose to EUR 4,861 million in 2007, which was slightly ahead of expectations.
Vestas shipped wind power systems with an aggregate capacity of 4,974 megawatts (MW) and handed over wind turbines with a capacity of 4,502 MW to its customers.
Vestas’ market share is estimated to have declined to 23% from 28% in 2006. The lower market share is due to new Chinese market players and an increase in work in progress.
Even so, the company’s order backlog increased by 20% over the course of the year to EUR 4.8 billion by year’s end.
Net working capital fell from EUR 122 million to EUR 68 million due to an increase in customer prepayments, which stood at EUR 1,092 million at the end of the year, compared with EUR 926 million at year-end 2006.
Improved cash flow pushed up the interest-bearing net position to EUR 614 million at 31 December 2007, against EUR 271 million at the end of 2006.
Vestas said it believes it will take several years for the supply of wind turbines to match demand, and in 2008 the company expects to complete facilities that will increase in-house capacity by about 3,000 MW in the fourth quarter.
In 2008, Vestas will commence construction of new factories, including a foundry in China and a tower plant in the USA, which will form part of a capacity expansion of more than 2,500 MW at the beginning of 2010 compared with capacity at the beginning of 2009.
Vestas forecast a rise in revenue to EUR 5.7 billion for 2008.
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