Vestas maintains expectations in Q2 2011 report

Vestas Wind Systems (OMX:VWS) still expects to receive of firm and unconditional orders of 7,000-8,000 MW for 2011 despite fierce competition and being currently behind schedule to reach that goal. Analysts’ had been expecting for a certain downward revision based on announced orders. Vestas says that processing times and documentation requirements from banks are much more critical than before. Component prices are rising but Vestas tends to be able to move them directly onward to the end customers.

Second quarter revenue was 1.4 billion Euros and profit after tax 55 million, both a marked improvement on Q2 2010. Vestas also maintains revenue, EBIT and free cash flow guidance at 7 billion Euro, 7% and a minimum of zero respectively. The expected revenue is already pretty much secured from existing firm orders. Vestas will continue to reduce inventories. There are always large quarterly fluctuations in Vestas’ numbers.