Denmark-headquartered Vestas, an international wind turbine manufacturer, announced in its third quarter 2006 interim financial report a net profit for the quarter of 18 million euros against a profit of 16 million euros in the same period for 2005. Vestas reported a third quarter 2006 revenue of 842 million euros, an expected decline of 13% on the same period in 2005 due, according to Vestas, to a difficult component situation and supply-only orders that are recognized as revenue late in the delivery process.
The company's earnings before interest and taxes (EBIT) was improved from 20 million euros in the third quarter of 2005 to 40 million euros in the same period for 2006, while net working capital increased during the period to 560 million euros. Vestas anticipates reporting an EBIT margin at year end of approximately 5% on a revenue of approximately 3.7 billion euros.
The initial response from investors was positive, with Vestas' stock price increasing 20% as trading opened Wednesday morning after earnings were released.