In the third quarter of this year (Q3'13), Vestas generated revenue of EUR 1.442 billion – a 27% decrease year-over-year. Nonetheless, the company claims its turnaround is continuing according to plan.
Vestas says EBIT before special items increased by EUR 54 million to EUR 67 million due to the lower fixed cost base and improved project margins. The EBIT margin before special items was 4.6%, and the free cashflow increased by EUR 198 million to EUR 56 million compared to the third quarter of 2012.
The intake of firm and unconditional wind turbine orders was 1,547 MW in Q3. On Sept. 30, the value of the wind turbine backlog amounted to EUR 7.3 billion. In addition to the wind turbine order backlog, Vestas had service agreements with contractual future revenue of EUR 6.1 billion at the end of September. Thus, Vestas says, the value of the combined backlog of wind turbine orders and service agreements stood at EUR 13.4 billion – an improvement of EUR 400 million during the quarter.
"The improved EBIT despite a 27 percent drop in revenue and another quarter of debt reduction are important results of the ongoing turnaround, and we remain focused on delivering according to plan in the last part of the year," says Anders Runevad, Vestas' president and CEO.
As part of Vestas' ongoing efforts to return to profitability, the company named Runevad to replace ousted CEO Ditlev Engel in August. The company's turnaround plan, initiated in 2011, has also focused heavily on reducing its workforce and assets.
In its Q3'13 report, Vestas notes it has lowered its headcount from 22,721 employees at the end of 2011 to 16,200 employees. The company has an overall goal to have no more than 16,000 workers by year-end.