November 9, 2017 / 8:00 AM / a year ago

Wind turbine maker Vestas lowers 2017 profit outlook on increased competition

COPENHAGEN, Nov 9 (Reuters) - Vestas, the world’s largest maker of wind turbines, lowered its 2017 profit margin outlook as it faces increased competition and uncertainty about a proposed U.S. tax reform that could cut support for the industry.

Third-quarter operating profit before special items fell 18 percent on the year to 355 million euros ($412.2 million), lagging a forecast for 404 million in a Reuters poll of analysts.

Vestas said it is now forecasting 2017 sales of 9.50-10.25 billion euros and an EBIT margin of 12-13 percent compared to a previous forecast of 9.25-10.25 billion euros and 12-14 percent, respectively.

“The updated range reflects a good activity level, but also the introduction of some uncertainty linked to the US tax reform,” said Vestas in a statement, referring to the new revenue guidance, which some analysts had expected would be revised upwards.

The EBIT margin guidance was lowered due to additional execution costs and an increased competitive environment, Vestas added. ($1 = 0.8612 euros) (Reporting by Stine Jacobsen; Editing by Keith Weir)

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