Interim Financial Report Third quarter 2014
In the third quarter of 2014, Vestas generated revenue of EUR 1,813m – an increase of 26 per cent compared to the third quarter of 2013. EBIT before special items increased by EUR 96m to EUR 163m primarily due to higher volume and to a lesser extent also caused by improved average margins. The EBIT margin before special items was 9.0 per cent. The net result increased by EUR 189m to EUR 102m and the free cash flow increased by EUR 49m to EUR 105m compared to the third quarter of 2013.
The intake of firm and unconditional wind turbine orders amounted to 1,170 MW in the third quarter of 2014 – a decrease of 24 per cent compared to the third quarter of 2013. However, year-to-date, order intake is up by 458 MW, or an increase of 12 per cent compared to last year. The value of the wind turbine backlog amounted to EUR 6.7bn at 30 September 2014, which is a decrease of 9 per cent compared to same time last year. In addition to the wind turbine order backlog, Vestas had service agreements with contractual future revenue of EUR 6.7bn at the end of September 2014, compared to 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 at 30 September 2014.
Vestas upgrades the 2014 guidance on revenue from minimum EUR 6bn to EUR 6.4bn-7.0bn. EBIT margin guidance before special items is upgraded from minimum 6 per cent to 7-8 per cent and guidance on free cash flow is upgraded from minimum EUR 300m to EUR 400m-700m. The upgrades are based on the expected delivery plan for the remainder of the year and an improved cost base.
Group President & CEO Anders Runevad said: ”The third quarter of 2014 continued the trend with improvements in several operational areas and thus highlights that execution remains on track for our strategy, Profitable Growth for Vestas. Based on the expected delivery plan for the remainder of the year and the improved cost base, we raise our guidance on revenue, EBIT and cash flow.”
Q3 at a glance (compared to Q3 2013)
| - 24% | Vestas had an order intake of 1,170 MW ‒ a decrease of 24 per cent |
| + 36% | Vestas produced and shipped 2,183 MW ‒ an increase of 36 per cent |
| + 43% | Vestas delivered wind power systems with an aggregate capacity of 1,682 MW ‒ an increase of 43 per cent |
| + 26% | Vestas generated revenue of EUR 1,813m ‒ an increase of 26 per cent |
| + 11% | Onshore service revenue amounted to EUR 235m ‒ an increase of 11 per cent |
| + EUR 96m | EBIT before special items amounted to EUR 163m ‒ an increase of EUR 96m |
| + EUR 189m | Net profit amounted to EUR 102m ‒ an increase of EUR 189m |
| + EUR 49m | Vestas realised a free cash flow of EUR 105m ‒ an increase of EUR 49m |
| + 12% | The number of employees at the end of the quarter was 19,324 ‒ an increase of 12 per cent |
| - 1% points | Renewable energy amounted to 66 per cent of the total energy consumption ‒ a decrease of 1 percentage points |
| - 22% | Incidence of lost time injuries per one million working hours was 1.4 ‒ a decrease of 22 per cent |
Press and analyst information meeting
For analysts, investors and the media, an information meeting will be held today, Friday 7 November 2014 at 10 a.m. CEST (9 a.m. BST) at
Radisson Blu Royal Hotel, Copenhagen
Hammerichsgade 1
1611 Copenhagen V
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
Hans Martin Smith, Senior Vice President, Investor Relations
Tel: +45 9730 8209