Vestas Wind Systems
raised its 2015 profit forecast on Thursday and said it would
buy back shares after stronger than expected third-quarter
results, sending its shares to their highest in over six years.
The world's largest wind turbine maker said operating profit
rose 50 percent from a year ago to 232 million euros ($252
million), helped by a 17 percent rise in revenue and higher
turbine prices, beating analyst forecasts of 201 million.
The company also said it would buy back shares of up to 1.12
billion Danish crowns ($163.2 million) starting on Thursday,
sending its stock as much as 6 percent to 419.6 crowns, the
highest since May 20, 2009.
"The share buy-back programme comes sooner than I had
expected. Its a clear-cut signal of Vestas feeling very
confident about the future," said Sydbank analyst Jacob
Pedersen.
By 0845 GMT, shares in Vestas were up 3.9 percent while the
Copenhagen main index was 0.5 percent higher.
The results and outlook mark a complete turnaround for the
Danish company. It was hit hard by the global financial crisis
and subsequent economic slump when renewable energy projects,
often boosted by state funding, took a back seat.
The company ousted Chief Executive Ditlev Engel two years
ago after a string of profit warnings, slashed its workforce and
shut down some facilities. Engel was replaced by Anders Runevad
who made turbines more price competitive.
"With greater clarity on deliveries for the remainder of the
year and a very solid financial position, we are raising our
guidance," Runevad said in the company's results statement.
Vestas said it now expected a profit margin on earnings
before interest and tax of 9-10 percent, up from 8.5 percent
previously, and for revenue of 8-8.5 billion euros this year
instead of a minimum 7.5 billion.
In the third quarter, its revenue rose to 2.12 billion euros
while the combined backlog of wind turbine orders and service
agreements stood at 16.4 billion euros.
Vestas managed to get a higher price for its wind turbines
in the quarter, said Alm. Brand Markets analyst Michael Friis
Jorgensen.
The company's results showed that one megawatt generated
0.99 million euros in the third quarter this year compared with
0.85 million in the same period a year ago.
(Reuters)