Wind turbine maker Vestas cuts 2004 forecasts
Date: 10-Aug-04
Country: DENMARK
Vestas now expects full-year sales of 2.6 billion euros ($3.1 billion) against a previous forecast of 2.7-2.8 billion and a margin on earnings before interest and taxes (EBIT), including the effects of restructuring, of about 6 percent down from 7 percent previously.
The company said the reduced EBIT margin was primarily due to the lower turnover.
"The forecast downgrade is not surprising to the market given the large degree of political uncertainty concerning the U.S. market," Danske Equities analyst Henrik Breum said.
Vestas shares were up 1.2 percent 82.75 crowns at 0838 GMT, while the Copenhagen bourse's top-20 KFX index was down 0.5 percent.
The key U.S. market for wind power has been held back due to the uncertain status of the wind energy production tax credit (PTC), a federal tax incentive to promote wind power.
"The situation is now that the PTC is not expected (to be) extended till September at the earliest, but the extension will most likely not be approved before 2005," Vestas said in a statement.
The company also said it had won an order in the U.S. for 33 NM82-1.65 MW wind turbines, worth about 40 million euros in total. The order was received from Crescent Ridge LLC.
(Additional reporting by Lasse Friis)
