By Dominic Chopping
Vestas Wind Systems AS said Tuesday that it swung to a second-quarter net loss as earnings were weighed by provisions, but that the company has reintroduced full-year guidance as visibility improved.
The Danish wind-turbine maker swung to a net loss attributable to shareholders of 7 million euros ($8.2 million), from a profit of EUR90 million a year earlier, missing an analyst's consensus of a EUR75 million profit according to a FactSet poll.
Revenue rose 67% to EUR3.54 billion compared with the consensus view of EUR2.67 billion, as order intake slipped to EUR3.2 billion from EUR4.3 billion. The total turbine and service order backlog rose to EUR35.1 billion from EUR31.5 billion.
Earnings took a hit from warranty provisions of EUR175 million in the second quarter. The extraordinary provisions cover a specific repair and upgrade of a confined, albeit considerable number of blades that are already installed, it said.
Vestas reintroduced guidance that it dropped in April, expecting full-year revenue at EUR14 billion-EUR15 billion.
However, it lowered EBIT margin before special items guidance to 5%-7% from 7%-9% previously, due to warranty provisions as well as additional costs resulting from the increased complexity around logistics and supply chain caused by the pandemic.
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