After picking up financial momentum in the beginning of this year, Vestas is reporting another solid quarter. In the second quarter of 2014 (Q2'14), the turbine maker generated revenue of EUR 1,341 million, a 13% increase compared to Q2'13.
Vestas says EBIT before special items increased by EUR 92 million year-over-year to EUR 104 million, primarily due to improved average project margins and higher volume. Net result increased by EUR 156 million to EUR 94 million, compared to the second quarter of last year.
The intake of firm and unconditional wind turbine orders amounted to 1,932 MW in Q2'14 – an 18% increase from Q2'13. Vestas produced and shipped 1,457 MW, a year-over-year increase of 27%, and delivered wind power systems with an aggregate capacity of 1,145 MW, an increase of 31% from Q2'13.
The value of the wind turbine backlog amounted to EUR 7.4 billion at June 30. In addition to the wind turbine order backlog, Vestas says it had service agreements with contractual future revenue of EUR 6.5 billion at the end of June. Thus, the value of the combined backlog of wind turbine orders and service agreements stood at EUR 13.9 billion, the company adds.
Based on the improving cost base and the expected delivery plan for the second half of this year, Vestas says it has upgraded its 2014 guidance on EBIT margin before special items from a minimum of 5% to a minimum of 6%.
Anders Runevad, Vestas president and CEO, comments, "With another solid quarter showing improvements in most areas, we remain focused on executing on our strategy, Profitable Growth for Vestas."
Vestas had announced its new strategy to "improve operational excellence" by focusing on initiatives such as site consolidation and simplification of its geographical footprint shortly after it hailed the end of its two-year turnaround program in February.