Interim financial, 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.”
Q2 at a glance (compared to Q2 2013)
| + 18% | Vestas had an order intake of 1,932 MW ‒ an increase of 18 per cent |
| + 27% | Vestas produced and shipped 1,457 MW ‒ an increase of 27 per cent |
| + 31% | Vestas delivered wind power systems with an aggregate capacity of 1,145 MW ‒ an increase of 31 per cent |
| + 13% | Vestas generated revenue of EUR 1,341m ‒ an increase of 13 per cent |
| + 6% | Onshore service revenue amounted to EUR 244m ‒ an increase of 6 per cent |
| + EUR 92m | EBIT before special items amounted to EUR 104m ‒ an increase of EUR 92m |
| + EUR 156m | Net profit amounted to EUR 94m ‒ an increase of EUR 156m |
| - EUR 218m | Vestas realised a free cash flow of EUR (21)m ‒ a decrease of EUR 218m |
| + 2% | The number of employees at the end of the quarter was 17,586 ‒ an increase of 2 per cent |
| + 14% points | Renewable energy amounted to 60 per cent of the total energy consumption ‒ an increase of 14 percentage points |
| - 38% | Incidence of lost time injuries per one million working hours was 2.0 ‒ a decrease of 38 per cent |
Press and analyst information meeting
For analysts, investors and the media, an information meeting will be held today, Wednesday, 20 August 2014 at 10 a.m. CEST (9 a.m. BST) at Vestas’ Headquarters, Hedeager 44, 8200 Aarhus N, Denmark.
The information meeting will be held in English 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: +45 7026 5040
A replay of the information meeting will subsequently be available from vestas.com/investor.
Contact details
Vestas Wind Systems A/S, Denmark
Lars Villadsen, Senior Vice President, Investor Relations
Tel.: +45 9730 0000