Vestas: Interim financial report, second quarter 2014

In the second quarter of 2014, Vestas generated revenue of EUR 1,341m – an increase of 13 per cent compared to the second quarter of 2013. EBIT before special items increased by EUR 92m to EUR 104m primarily due to improved average project margins and higher volume. The EBIT margin before special items was 7.8 per cent. Net result increased by EUR 156m to EUR 94m and the free cash flow decreased by EUR 218m to EUR (21)m compared to the second quarter of 2013.

The intake of firm and unconditional wind turbine orders amounted to 1,932 MW in the second quarter of 2014 – an increase of 18 per cent compared to the second quarter of 2013. The value of the wind turbine backlog amounted to EUR 7.4bn at 30 June 2014. In addition to the wind turbine order backlog, Vestas had service agreements with contractual future revenue of EUR 6.5bn at the end of June 2014. Thus, the value of the combined backlog of wind turbine orders and service agreements stood at EUR 13.9bn.

Vestas upgrades the 2014 guidance on EBIT margin before special items from minimum 5 per cent to minimum 6 per cent based on the improving cost base and the expected delivery plan for the second half of 2014.

Group President & CEO Anders Runevad said: ”With another solid quarter showing improvements in most areas, we remain focused on executing on our strategy, Profitable Growth for Vestas. Based on the improved cost base and the expected delivery plan for the second half of the year, we raise our 2014 EBIT margin target to minimum 6 per cent.”