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Wind turbine maker Vestas lags forecast as competition and tariffs bite

Wind turbine maker Vestas lags forecast as competition and tariffs bite
FILE PHOTO: Volvo Ocean Team Vestas 11th Hour Racing sails during the departure for the second leg in Lisbon, Portugal November 5, 2017. REUTERS/Pedro Nunes   -   Copyright  PEDRO NUNES(Reuters)
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COPENHAGEN (Reuters) – Wind turbine maker Vestas <VWS.CO> posted lower than expected second-quarter operating profit on Thursday, hit by competitive markets, tariffs and orders received during a steep price decline in 2017.

Operating profit before special items fell by roughly 50% to 128 million euros ($142.7 million) in the quarter, lagging a 143 million euro forecast in a Reuters poll of analysts. Its EBIT margin fell to 6% from 11.5% a year ago.

Vestas now expects revenue between 11 billion and 12.25 billion euros this year, compared with a previous forecast of 10.75 billion to 12.25 billion euros. Its EBIT margin before special items is now forecast at 8-9%, compared with previous guidance of 8-10%.

(Reporting by Stine Jacobsen; Editing by David Goodman)

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