Vestas Swings to Loss as Lower Deliveries Hit Revenue
By Adria Calatayud
Vestas Wind Systems slid to a net loss for the first quarter and reported a fall in revenue due to lower delivery volumes that couldn't be offset through pricing.
The Danish wind-turbine maker said that its profitability weakened in the first quarter compared with the year earlier-period, which benefited from the sale of its converters and controls business.
Slow permitting, cost inflation and supply-chain issues weighed on Vestas's profitability in recent years, but the company has signaled that both its top and bottom lines should improve in 2024, an expectation it reiterated Thursday.
Vestas posted a net loss for the quarter of 68 million euros ($72.9 million) compared with a profit of EUR15 million in the same period last year, Vestas said. Revenue fell to EUR2.68 billion from EUR2.83 billion.
Excluding special items, the company swung to a loss before interest and taxes of EUR68 million compared with a profit of EUR40 million, with a margin that contracted to minus 2.5% from a positive 1.4%.
Analysts had expected Vestas to report a positive EBIT before special items of EUR25 million on revenue of EUR2.98 billion, according to consensus estimates compiled by the company.
Vestas Chief Executive Henrik Andersen said the company's first-quarter results were in line with its expectations.
Write to Adria Calatayud at adria.calatayud@wsj.com
(END) Dow Jones Newswires
May 02, 2024 02:37 ET (06:37 GMT)
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