Revenue at the world鈥檚 leading turbine-maker actually increased in the period to 鈧2.2 billion from 鈧1.7 billion a year ago. This was supported by a 10% growth in turbine orders to 3,311MW and deliveries were up in all regions.
| Q1 2020 | Q1 2019 | |
| Revenue | 鈧2,235 million | 鈧1,730 million |
| Operating profit (Ebit) | - 鈧112 million | 鈧43 million |
| Orders | 3,311MW | 3,004MW |
However, with the current global issues affecting nearly all aspects of business, Vestas was forced to alter its own projections.
In late-April, the Danish firm announced plans to lay off approximately 400 staff and end production of its V138-3MW turbine to reduce costs during the period of uncertainty. It also suspended its guidance for the year due to the 鈥減oor visibility鈥.
These changes contributed to 鈧58 million of special items on its balance sheet this quarter.
Vestas' executive management team has agreed to a 10% pay cut until the end of 2020.
Further afield, while deliveries increased year on year, the company suffered from lower project margins as a result of 鈥渓ogistical challenges and supply chain bottlenecks鈥. Additionally, the commissioning of delayed projects from 2019 and other Covid-19 outlays resulted in 鈥渋ncreased cost levels鈥.
鈥淔urthermore, the first quarter of 2020 reflected a negative impact from a higher level of warranty provisions made,鈥 the company said in its interim financial report.
Vestas has therefore reported an operating loss (Ebit) after special items of 鈧112 million in the quarter, down from an Ebit of 鈧43 million in the same period of 2019.
The company made an overall loss of 鈧80 million, down from 鈧25 million profit in 2019.
鈥淚n the first quarter of 2020, the global demand for wind energy remained strong in spite of the Covid-19 pandemic鈥檚 continuing impact on societies and operations across all continents,鈥 said Vestas CEO Henrik Andersen.
鈥淚n line with our expectations, our EBIT margin in the first quarter was negatively impacted by the delivery of low-margin projects, while we also incurred increased execution costs from logistical challenges and supply chain bottlenecks, which were further amplified by the pandemic.
鈥淎s the global pandemic and economic crisis move into their next phase, Vestas continues to ensure business continuity and that renewables become a key part in restarting the global economy,鈥 Andersen added.
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