In order to make sure that Vestas will be profitable with an expected manufacturing level (shipments) of around 5GW in 2013, Vestas now intensifies the adjustment of the organisation. Consequently, Vestas now expects the number of employees at year-end to be around 19,000 against the previous guidance of 20,400.
This will contribute to a fixed cost reduction of more than € 250 million with full effect as from the end of 2012. As a consequence of the intensified redundancy plan, special items are now expected to amount to € 75-125 million. Vestas has initiated a process to identify outsourcing opportunities and also seeks to involve its suppliers in larger parts of the supply chain than is the case today. The intention is to further increase the manufacturing flexibility and to reduce Vestas’ capital requirement. Vestas generated revenue of € 1,611 million in the second quarter of 2012 – an increase of 15 per cent to the year-earlier period. EBIT before special items declined by 48 per cent to € 40 million. The EBIT margin before special items was 2.5 per cent – an improvement of 21 percentage points compared to the loss-making first quarter 2012. EBIT after special items was € 18 million. The intake of firm and unconditional orders was 945MW in the second quarter of 2012 and the value of the backlog of firm and unconditional orders amounted to € 9.6 billion at 30 June 2012. In addition to the turbine order backlog, Vestas had service agreements with contractual future revenue of € 4.8 billion at the end of June 2012, and thus the value of the combined backlog of turbine orders and service agreements stood at € 14.4 billion. Vestas retains its full-year guidance of an EBIT margin of 0-4 per cent before special items, revenue of € 6,500-8,000 million and a positive free cash flow. However among other things due to a lower order intake in the first half year and delays of grid connections in China, shipments are now expected to amount to approx 6.3GW against the previous expectation of approx 7GW. Investments are now expected to be € 450 million against the previous guidance of € 550 million.
This will contribute to a fixed cost reduction of more than € 250 million with full effect as from the end of 2012. As a consequence of the intensified redundancy plan, special items are now expected to amount to € 75-125 million. Vestas has initiated a process to identify outsourcing opportunities and also seeks to involve its suppliers in larger parts of the supply chain than is the case today. The intention is to further increase the manufacturing flexibility and to reduce Vestas’ capital requirement. Vestas generated revenue of € 1,611 million in the second quarter of 2012 – an increase of 15 per cent to the year-earlier period. EBIT before special items declined by 48 per cent to € 40 million. The EBIT margin before special items was 2.5 per cent – an improvement of 21 percentage points compared to the loss-making first quarter 2012. EBIT after special items was € 18 million. The intake of firm and unconditional orders was 945MW in the second quarter of 2012 and the value of the backlog of firm and unconditional orders amounted to € 9.6 billion at 30 June 2012. In addition to the turbine order backlog, Vestas had service agreements with contractual future revenue of € 4.8 billion at the end of June 2012, and thus the value of the combined backlog of turbine orders and service agreements stood at € 14.4 billion. Vestas retains its full-year guidance of an EBIT margin of 0-4 per cent before special items, revenue of € 6,500-8,000 million and a positive free cash flow. However among other things due to a lower order intake in the first half year and delays of grid connections in China, shipments are now expected to amount to approx 6.3GW against the previous expectation of approx 7GW. Investments are now expected to be € 450 million against the previous guidance of € 550 million.
