Vestas Q4 outlook challenged by weak order intake - brokers

Dec 17, 2012 - Vestas Wind Systems A/S (CPH:VWS) may have problems fulfilling its fourth-quarter expectations due to a weak order intake so far, Danish regional daily Jyllands-Posten (JP) said Sunday.

Last month, Vestas's CEO, Ditlev Engel, said that the order intake for the last trimester of 2012 would be the biggest one in the year. However, so far in the quarter the company has announced orders for only 360 MW. In addition, there will be smaller orders that are announced after the end of the period. Thus, in order to live up to its expectations, the Danish wind turbine maker has to secure new orders for at least 1,453 MW more, JP said.

"Vestas's silence is alarming. And it is not because there are not orders to get. They simply do not go to Vestas," Jacob Pedersen, senior analyst at Sydbank, told the newspaper. According to him, the company's difficult financial situation may be a hinder to attracting new customers.

However, Vestas spokesman Mikkel Friis-Thomsen underlined that they only commented firm and unconditional orders. He also said that historically the company leaves the final sprint for the last weeks of the year.

For 2013, Vestas expects to deliver 5 GW to customers. According to Michael Friis Jorgensen, analyst at Alm. Brand Markets, if no more new orders come in December, this target could be difficult to achieve and the company may have to cut capacity again.

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