Demand for renewable power sources has been growing in tandem with global efforts to combat climate change, boosting both Vestas’ orders for new turbines and its service business, where it now maintains roughly 43,000 turbines. Operating profit before special items rose 55% to 429 million euros. Its adjusted EBIT margin improved to 11.8% from 9.8% a year earlier. However, Vestas is also grappling with higher costs and falling prices for its products. Its earnings are under pressure from higher prices for steel, imported components and transportation amid global trade tensions. Group production costs were seen increasing by around 1.5 percentage point in 2019 which was higher than the previous estimate of 1 percentage point.
- Reuters -