'Market transition' dents Vestas
Full-year profits and revenue down despite increased order book
Vestas posted profits of €894m in 2017, down from €965m in 2016, on reduced revenues of €9.95bn compared with €10.2bn in the prior year.
The Danish manufacturer said the result was “strong” given a 12-month period marked by “fierce competition, price pressure and continued maturity”.
Chief executive Anders Runevad (pictured) said: “We once again led the industry on profit margins and produced solid revenue, free cash flow, record order intake and a growing and profitable business.
“We demonstrated that even in challenging conditions we can control costs and use our global presence and technology leadership to remain the industry leader.”
Turbine orders totalling 11,176MW were secured in 2017, up from 10,494MW in 2016, while the value of the service backlog increased by €1.4bn to €12.1bn.
Vestas expects revenue in 2018 to range between €10bn and €11bn with the service element expected to grow as part of the overall total. It expects a stable EBIT margin of between 9% and 11%.
In the longer term the company expects to prosper in an “unsubsidised renewable energy industry” marked by high competition and further consolidation.