Profitability increases as planned and growth is expected to rise to 20 per cent in 2007.
Due to continued heavy demand and improved earnings per turbine, the production capacity will be increased through the establishment of blade production in both the USA and Spain. In Denmark, the electronics facilities in Hammel will be extended. In 2006, the number of employees has increased to almost 12,000, an increase of 1,300. By the end of 2007, Vestas expects to have around 14,000 employees.
Vestas reported a Q3 2006 revenue of € 842 million, an expected decline of 13 per cent on the year-earlier period due to the difficult component situation and an increasing part of the shipped turbines -"supply only" orders"- being recognised as revenue late in the delivery process. In case of “supply only” orders, Vestas only delivers and commissions the turbines. The lower degree of complexity of these orders thus reflects Vestas’ changed risk profile.
The Group's EBIT was improved from € 20 million to € 40 million in Q3 2006, equivalent to an EBIT margin of 4.8 per cent against 2.1 per cent in 2005.
Net working capital increased during the period to € 560 million. This is equivalent to approximately 15 per cent of the expected full-year revenue.
Goals and forecasts:
2008: The financial goals in Vestas' strategic action plan The Will to Win has been tightened up. Vestas will now aim at an EBIT margin of 10-12 per cent and a net working capital of maximum 20 per cent of revenue at year-end 2008. The goal of a global market share of at least 35 per cent is maintained.
2007: Next year Vestas expects to report an EBIT margin of 7-9 per cent on a revenue of approx € 4.5 billion, an increase of 20 per cent. Net working capital is expected to amount to approx 20 per cent of revenue at year-end.
2006: This year Vestas expects to report an EBIT margin of approx 5 per cent (previous forecast 4-7 per cent) on a revenue of approx € 3.7 billion (previous forecast € 3.6–3.8 billion). Net working capital is expected to amount to approx 20 per cent of revenue at year-end 2006 (previous forecast 20-25 per cent).
