Vestas cuts margin outlook as Russia, Ukraine remains uncertain

Wind turbine maker, Vestas, cut its outlook for the full year after announcing write downs in Russia due to its invasion of  Ukraine businesses and loss in legacy offshore activities.

The company said on Monday that revenue for the full year is expected to range between 14.5bn and 16.0bn euros.

"In the quarter, we made one-time write-downs related to the Russian invasion of Ukraine and legacy offshore activities. To address the current business environment, we also made a strategic re-prioritisation of select markets and plans to adjust our manufacturing footprint, which together with the write-downs on Russia, Ukraine and Offshore impacted our results negatively,” said Group President & CEO Henrik Andersen.

“Based on these decisions and the uncertain business environment, we are adjusting our financial guidance for the full year,” added Andersen.

The company said it expects to achieve an EBIT margin before special items of (5)-0 percent with a service EBIT margin before special items of approx. 23 percent.

Vestas reported 2,485m euros as revenue for its first quarter of this year which is an increase of 27 percent compared to the same period last year. However, the company made a loss before interest, tax and special items of 329 million euros.