COPENHAGEN, Nov 8 (Pakistan Point News - APP - 08th Nov, 2016 ) : Danish wind turbine maker Vestas Wind Systems Tuesday raised its annual revenue and profit forecast but disappointed investors by saying some US projects could take longer than expected. "The upgrades are based mainly on improved delivery visibility for the remainder of the year," the company said in a statement. Vestas upgraded its revenue guidance for this year to between 10 and 10.
5 billion Euros ($11 billion to $11.6 billion) from a minimum of 9.5 billion euros. The company said it now believes the margin on earnings before interest and taxes (EBIT) before special items will be between 13 and 14 percent, rather than at least 12.5 percent. The group had already raised its forecasts in August. Net profit jumped 50 percent in the third quarter to 309 million euros, as revenue climbed 37 percent to 2.9 billion euros.
"Revenue and earnings are up strongly, as are deliveries across all regions," chief executive Anders Runevad said in a statement. "Order intake is up 17 percent, while combined turbine and service order backlog declined this quarter, largely due to high turbine delivery activity," he added. But after gaining in early trading, shares in Vestas slipped into the red as chief financial officer Marika Fredriksson suggested business in the US could slow after Washington lawmakers in December last year decided to extend a wind power production tax credit. The move gave US lawmakers more time to place their orders, Fredriksson said on a conference call. The stock was down by six percent in early afternoon trading on the Copenhagen bourse, where the main index was 0.5 percent lower.