Delayed installation of Vestas V112 turbines not to entail guidance cut - broker

Dec 12, 2012 - The suspension in installation of V112 wind turbines after last week's fatal accident in Germany will entail big costs for Vestas Wind Systems A/S (CPH:VWS) in 2012 but should not trigger a guidance downgrade, according to Alm. Brand Markets.

Installation was temporarily stopped after a subcontractor employee was killed when a blade dropped onto the crane cabin on December 3. However, on Monday Vestas told Danish newswire Ritzau Finans that installation of V112 turbines had been resumed on December 6 everywhere but in Germany.

The delayed installation will, in the worst case, result in an negative effect of EUR 150 million (USD 195m) on the top line and up to EUR 35 million on the cash flow, Alm. Brand said in a note on Tuesday.

Vestas expects revenues of EUR 6.5 billion-8 billion for 2012 and a cash flow of between minus EUR 500 million and zero.

(EUR 1.0 = USD 1.300)

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