Company Logo



Home industry environmental-sustainability wind turbine maker Vestas second quarter hit by higher costs

Wind turbine maker Vestas second quarter hit by higher costs


Environmental Sustainability

 Wind turbine maker Vestas second

Wind turbine maker Vestas reported a bigger-than-expected second-quarter operating loss hit by higher costs.

Heightened competition and soaring metals prices exacerbated by the war in Ukraine and supply disruptions becasue of the pandemic have made it problematic for wind turbine manufacturers to churn out positive margins, despite being more in demand than ever.

The Denmark-based firm reported a loss of 182 million euros in earnings before interest and tax (EBIT) before special items, more comprehensive than the loss of 143 million euros prediction by analysts in a Refinitiv poll, which resulted in an EBIT margin of minus 5.5%.

Vestas’ CEO, Henrik Andersen, said in a statement that the first half of 2022 was characterized by supply chain disruptions and geo-political uncertainty that have caused costs to increase and an energy crisis to unfold.

Vestas has tried to forward some of its higher costs to customers and said the average cost of its onshore products in the second quarter, known as average selling price, had increased by 22% compared to the same period last year, to 960,000 euros per megawatt.

Per Hansen, an analyst for Nordnet, said prices were on the rise, and Vestas was leading the way as the market leader. It would be positively noted by investors, even if the numbers were generally on the weak side.


Business News


Recommended News


Most Featured Companies


Latest Magazines

© 2024 CIO Bulletin Inc. All rights reserved.