Vestas Wind Systems (OMX: VWS) announced preliminary financial highlights from 2011 after market close on Tuesday. The company had already lowered expectations couple months ago on ground of delays in Travemünde, Germany. Vestas says those issues are now being solved and will not affect 2012 numbers. While Vestas gave the announcement regarding Travemünde problems, the company said that weather risks, lack of grid connections and other issues affecting installation of turbines may still cause further delays affecting 2011 result.
Precisely that appears to now have happened as Vestas now says that 2011 shipments amounted to 5.1 GW compared to previous expectations of 5.5 GW. Therefore around 400 million in revenue is expected to be deferred to Q1 2012. Worryingly, Vestas also said that costs for 2011 are some 100 million Euros more than expected. This all will total for approximately 6 billion Euros in 2011 revenue with an EBIT margin close to zero (previous guidance 6.4 billion and 4%). The company still expects to have realized a positive cash flow for 2011.
The 2011 order inflow will indeed reach guidance handily. Vestas is saying it has 7400 MW of 2011 orders in-house. Vestas also said that implementation of new organization is progressing faster than planned and a significant change to the entire organization will be presented in 12th of January 2012. There is also some speculations that CEO Ditlev Engel’s position may be in jeopardy, despite comments from him to newspaper Børsen.dk that he will continue as CEO after the 12th. It is likely that market reaction tomorrow morning will be blood-red.
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