Interim financial report, third quarter 2013
Third quarter EBIT improved despite 27 per cent lower revenue. Outlook for 2013 upgraded on EBIT margin and free cash flow. Turnaround continues according to plan.
Vestas upgrades the 2013 outlook on EBIT margin before special items from minimum 1 per cent to minimum 2 per cent and free cash flow is upgraded from minimum EUR 200m to EUR 500-700m.
In the third quarter of 2013, Vestas generated revenue of EUR 1,442m – a decrease of 27 per cent to the year-earlier period. Despite the decrease in revenue, EBIT before special items increased by EUR 54m to EUR 67m due to the lower fixed cost base and improved project margins. The EBIT margin before special items was 4.6 per cent and the free cash flow increased by EUR 198m to EUR 56m compared to the third quarter of 2012.
The intake of firm and unconditional wind turbine orders was 1,547 MW in the third quarter of 2013. The value of the wind turbine backlog amounted to EUR 7.3bn at 30 September 2013. In addition to the wind turbine order backlog, Vestas had service agreements with contractual future revenue of EUR 6.1bn at the end of September 2013. Thus the value of the combined backlog of wind turbine orders and service agreements stood at EUR 13.4bn – an improvement of EUR 400m during the quarter.
During the third quarter, Vestas and Mitsubishi Heavy Industries Ltd. have agreed to form a joint venture dedicated to offshore wind energy.
In order to increase the flexibility of Vestas’ supply chain, Vestas has divested its machining and casting units to the German industry group VTC Partners GmbH. The divestment led to write downs of EUR 50m which constitutes the majority of the third-quarter special items of EUR 64m.
Group President & CEO, Anders Runevad said: ”The improved EBIT despite a 27 per cent drop in revenue and another quarter of debt reduction are important results of the ongoing turnaround, and we remain focused on delivering according to plan in the last part of the year.”
Q3 at a glance (against Q3 2012)
+ 286% Vestas had an order intake of 1,547 MW
- an increase of 286 per cent
- 1% Vestas produced and shipped 1,607 MW
- a decrease of 1 per cent
- 20% Vestas delivered wind power systems with an aggregate capacity of 1,176 MW
- a decrease of 20 per cent
- 27% Vestas generated revenue of EUR 1,442m
- a decrease of 27 per cent
- 3% Service revenue amounted to EUR 227m
- a decrease of 3 per cent
+ EUR 54m EBIT before special items amounted to EUR 67m
- an increase of EUR 54m
+ EUR 88m Net profit amounted to EUR (87)m
- an increase of EUR 88m
+ EUR 198m Vestas realised a free cash flow of EUR 56m
- an increase of EUR 198m
- 14% The number of employees at the end of the quarter was 17,237
- a decrease of 14 per cent
+ 9% points Renewable energy amounted to 67 per cent of total energy consumption
- an increase of 9 percentage points
- 36% Industrial injuries per one million working hours was 1.8
- a decrease of 36 per cent
Press and analyst information meeting
For analysts, investors and the media, an information meeting will be held today, Wednesday, 6 November 2013 at 10 a.m. CET (9 a.m. London time) at Vestas’ Headquarters, Hedeager 44, 8200 Aarhus N, Denmark.
The information meeting will be held in English (with simultaneous interpretation into Danish) and webcast live via vestas.com/investor.
The meeting may be attended electronically and questions may be asked through a conference call. The telephone numbers for the conference call are:
Europe: +44 208 817 9301
USA: +1 718 354 1226
Denmark: +5 7026 5040
A replay of the information meeting will subsequently be available from vestas.com/investor.
Vestas Wind Systems A/S, Denmark
Lars Villadsen, Senior Vice President, Investor Relations
Tel.: +45 9730 0000