Vestas Earnings Hit by Supply Chain Instability, Costs and Lower Deliveries

By Dominic Chopping

Vestas Wind Systems AS on Wednesday posted a bigger-than-expected third-quarter net loss as supply chain instability and cost inflation continued to weigh while delays to project deliveries resulted in higher costs.

The Danish wind-turbine maker swung to a third-quarter net loss of 147 million euros ($145.1 million), from a profit of EUR115 million a year earlier, as revenue fell 29% to EUR3.91 billion.

A company-compiled consensus had expected a net loss of EUR34 million on revenue of EUR4.54 billion.

Order intake fell to EUR2.0 billion from EUR3.0 billion, while the total turbine and service order backlog rose to EUR50.9 billion from EUR47.3 billion, the company said.

"Project development and order intake remain impeded by energy market uncertainties and red tape," Chief Executive Henrik Andersen said.

For 2022, Vestas now sees revenue of between EUR14.5 billion and EUR15.5 billion from EUR14.5 billion-EUR16.0 billion.

The pre-items earnings before interest and tax margin is now seen at around minus 5%, from minus 5% to 0%.

Service revenue is expected to grow by at least 20%, from at least 10%, with a pre-items service EBIT margin of around 22% from around 23%.

The company sees total investments of EUR850 million for the year, having previously seen EUR1 billion.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

November 02, 2022 04:14 ET (08:14 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.