Vestas reports profit increase

The world’s largest wind turbine manufacturer, Vestas, has reported its pre-tax third-quarter profits up 70 per cent on a year earlier at €165m (£149m).

The company said it recorded strong results despite the adverse impacts of the recent production closure of its Isle of Wight site and the delayed upgrades of its labour force in the US.

Revenue was up three per cent to €1,814m and the group posted a 53 per cent year-on-year increase in earnings before interest and taxes (EBIT) of €244m.

Overall working capital stood at 15 per cent of expected annual revenue against one per cent a year earlier, with the order backlog amounting to €3.5bn at the end of September 2009.

In addition, the company said that it had increased its employee headcount over the past 12 months from 19,330 to 20,256.

The group had originally increased its staff in order to cope with revenue growth in 2009 of more than 40 per cent relative to 2008, and as a result said that it now has excess capacity.

For the rest of the year, Vestas expects an EBIT margin of around 11 to 13 per cent and revenue of €7.2bn. Overall investments in property, plant and equipment and intangible assets are predicted to remain unchanged at €1bn.

Looking ahead to 2010, Vestas expects to achieve an EBIT margin of 10-12 per cent at a revenue of between €7-8bn. As modelled by previous years, it has forecast most of the revenue and earnings to be generated in the second half of the year.