Earnings before interest and tax (EBIT) at the world’s biggest producer of wind turbines were 77 million euros ($110.9 million) in April-June against a loss of 180 million euros in the second quarter last year.
Vestas shares traded up 17.4 percent by 0704 GMT. "The development confirms that revenue and especially earnings may show major quarter-to-quarter fluctuations depending on capacity utilisation and the type of projects handed over," Vestas said in a statement.
Vestas stood by its previous guidance for full-year 2011 revenues of 7 billion euros, an EBIT margin of 7 percent and an order intake of 7,000-8,000 megawatts (MW) of wind turbines.
Vestas generated first half-year revenue of EUR 2,461m; an increase of 31 per cent on the first half of 2010. EBIT amounted to EUR 8m, against a loss of EUR 219m in the first half of 2010. The EBIT margin thus rose to 0.3 per cent from (11.6) per cent. The free cash flow improved significantly to EUR (494)m from EUR (1,058)m in the first half of 2010.
The half-year intake of firm and unconditional orders was 2,895 MW, and the backlog of firm and unconditional orders amounted to EUR 8.0bn at 30 June 2011. Safety at Vestas’ workplaces was higher than ever before with an incidence of industrial injuries of 3.2. Renewable energy accounted for 32 per cent of Vestas’ total energy consumption in the half-year. Firm and unconditional orders covering almost all the expected revenue of EUR 7bn for 2011 have already been secured, which is why the outlook for revenue, EBIT margin and the free cash flow is maintained at EUR 7bn, 7 per cent and a minimum of EUR 0, respectively. In spite of the macro-economic and financial uncertainty, Vestas still expects an intake of firm and unconditional orders of 7,000-8,000 MW in a market that remains fiercely competitive.