Vestas - Interim financial report, first quarter 2018
04 Mayo 2018 - 1:30AM
Vestas - Interim financial report, first quarter 2018
Vestas Wind Systems A/S, Aarhus, 4 May 2018Company announcement
No. 23/2018
Vestas - Interim
financial report, first quarter 2018
Summary: Revenue, earnings, and free cash flow
decreased compared to last year’s very strong first quarter. Solid
order intake and combined order backlog at high level. Guidance for
2018 maintained.
In the first quarter of 2018, Vestas generated
revenue of EUR 1,694m – a decrease of 10 percent compared to the
year-earlier period. EBIT decreased by EUR 85m to EUR 126m. The
EBIT margin was 7.4 percent compared to 11.2 percent in the first
quarter of 2017 and free cash flow* amounted to EUR (587)m compared
to EUR 8m in the first quarter of 2017.
The intake of firm and unconditional wind
turbine orders amounted to 1,629 MW in the first quarter of 2018.
The value of the wind turbine order backlog amounted to EUR 9.3bn
as at 31 March 2018. In addition to the wind turbine order backlog,
Vestas had service agreements with expected contractual future
revenue of EUR 12.3bn at the end of March 2018. Thus, the value of
the combined backlog of wind turbine orders and service agreements
stood at EUR 21.6bn – an increase of EUR 1.6bn compared to the
year-earlier period.
Vestas maintains its 2018 guidance on revenue of
EUR 10bn-11bn, EBIT margin of 9-11 percent, total investments* of
approx. EUR 500m, and free cash flow* of minimum EUR 400m.
Group President & CEO Anders Runevad
said: “The wind energy industry continues to drive down
electricity prices and further enable integration of sustainable
energy, creating a larger long-term market for wind power
solutions. In the short term, however, this has entailed fierce
competition that has impacted profitability in the sector, which
together with currency headwinds for Vestas resulted in first
quarter 2018 results that are lower than last year’s historically
strong first quarter. At the end of the first quarter of 2018,
Vestas had an all-time high order backlog, solid revenue, and a
best-in-class EBIT margin, while our service revenue grew
organically by 5 percent and continued to deliver solid margins.
Vestas continues to execute on its strategy, manage its cost base
and use its leading position to invest in technology and
innovations that over the long term will enable Vestas to increase
wind energy’s prominence in the global energy mix.”
Key highlights
All-time high order backlog Wind turbine and
service order backlog of EUR 21.6bn; up 8 percent year-on-year.
Revenue of EUR 1,694m5 percent organic decline
compared to record-high revenue in Q1 2017.
EBIT of EUR 126m EBIT margin at 7.4
percent.
Solid service performanceOrganic revenue growth
of 5 percent and EBIT margin of 26.8 percent.
*) Excl. the acquisition of Utopus Insights, Inc., any
investments in marketable securities, and short-term financial
investments.
Information meeting (audiocast)
Today, Friday 4 May 2018 at 10 a.m. CEST (9 a.m.
BST), Vestas will host an information meeting via an audiocast. The
audiocast will be accessible via vestas.com/investor.
The meeting will be held in English and
questions may be asked through a conference call.
The telephone numbers for the conference call
are:
Europe: +44 203 008 9806USA: +1 855 83159
44Denmark: +45 3544 5579
Presentation material for the information
meeting will be available at vestas.com/investor approximately one
hour before the meeting.
Contact detailsVestas Wind
Systems A/S, DenmarkPatrik Setterberg, Vice President,
Investor Relations
Tel: +45 6122
1913
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