Vestas reveals disappointing 2011 financial results

Wind power order intake for 2011 amounted to 7.4 GW at a total value of approx EUR 7.3bn. The forecast was 7-8 GW. The world’s biggest maker of wind turbines said its revenue for last year would be about 6 billion euros, down from its Oct. 30 estimate for about 6.4 billion euro.

Based on the first reported figures concerning Vestas’ level of activity as per 31 December 2011, which have not yet been consolidated and reviewed, the below preliminary financial highlights for the financial year 2011 can be disclosed. Some of the figures may also be affected by the final exchange rate statement. The annual report for 2011 will be presented on 8 February 2012:

Wind power order intake for 2011 amounted to 7.4 GW at a total value of approx EUR 7.3bn. The forecast was 7-8 GW. Preliminary statements of Vestas’ cash at bank and in hand indicate that Vestas still expects to realise a positive free cash flow in 2011, in spite of the fact that shipments amounted to 5.1 GW compared to previous expectations of 5.5 GW. Together with wind turbines order intake, shipments are the most important factors for cash flow generation.

Revenue of approx EUR 400m with an EBIT of approx EUR 130m is expected to be deferred from 2011 to the first quarter of 2012 due to delays in transfer of risk from Vestas to the customers.

Costs are expected to be approx EUR 125m higher than expected, of which EUR 100m is predominantly related to the development costs for industrialisation of the V112-3.0 MW wind turbine, the GridStreamer technology for the 2 MW platform and the higher-than-expected product costs.

As a consequence of the deferred revenue and earnings as well as the higher-than-expected costs, revenue for 2011 is now expected to amount to approx EUR 6bn and the EBIT margin to approx 0 per cent.

During the fourth quarter of 2011, Vestas expects to generate revenue of approx EUR 2.2bn and an EBIT of approx EUR 85m.

The earlier mentioned commissioning problems at the generator factory in Travemünde, Germany, have been brought under control and are being solved. They are not expected to have a negative effect on operations in 2012.

The preparation of the implementation of the new organisation is progressing faster than originally expected. Accordingly, the significant change of the whole organisation will now be presented on Thursday, 12 January 2012. At the same day, a press meeting will be held at 2 pm CET at the Radisson Blu Royal Hotel in Copenhagen, Denmark.

The figures mentioned in this company announcement, will be finally confirmed in connection with the disclosure of the annual report for 2011 on 8 February 2012.