Vestas Q2 Profit Rises, Revenue Up 46%; Upgrades Outlook

(RTTNews) - Vestas Wind Systems A/S (VWDRY.PK) reported that its second-quarter profit increased to 278 million euros from 125 million euros, prior year. Earnings per share was 1.26 euros compared to 0.56 euros. Operating profit (EBIT) before special items increased to 399 million euros from 145 million euros. EBIT margin before special items was 15.6 percent compared to 8.3 percent in the second quarter of 2015. The free cash flow amounted to 330 million euros compared to 183 million euros, prior year.

In the second quarter of 2016, Vestas generated revenue of 2.56 billion euros, an increase of 46 percent compared to the year-earlier period, primarily driven by higher MW deliveries for the project segment.

For 2016, the company now expects: revenue of minimum 9.5 billion euros compared to minimum 9.0 billion euros previously, EBIT margin before special items of minimum 12.5 percent compared to minimum 11 percent previously, and free cash flow of minimum 800 million euros compared to minimum 600 million euros previously.

The Board of Vestas Wind Systems has decided to initiate a share buy-back programme of up to approximately 400 million euros to be executed during the period 18 August 2016 to 30 December 2016. The main purpose of the share buy-back programme is to adjust the capital structure of Vestas.