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Denmark

Vestas suspends 2020 guidance

Vestas has suspended its financial guidance for 2020 due to the “poor visibility” caused by the coronavirus (Covid-19) pandemic.

Vestas claimed achieving its 2020 guidance was “still realistic”, but with Covid-19's continued spread, it was no longer able to confidently maintain this guidance for the full yea
Vestas claimed achieving its 2020 guidance was “still realistic”, but with Covid-19's continued spread, it was no longer able to confidently maintain this guidance for the full yea

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It had expected revenue of €14-15 billion, an Ebit margin before special items of 7-9%, and total investments of about €700 million in 2020.

Achieving the outlook was “still realistic”, Vestas said— based on the manufacturer emerging from the first quarter largely unscathed — but the continued disruption caused by the pandemic means it was no longer able to confidently provide guidance for the full year.

The manufacturer will issue new expectations when it is capable of doing so.

“The pandemic continues to spread and with no clear prognosis on when key wind markets such as the US, Brazil, and India will recover, we are suspending our guidance due to the poor visibility for the remainder of the year," said CEO Henrik Andersen. 

The manufacturer revealed Covid-19 had only a “limited impact” on its performance in the first quarter of the year, adding preliminary figures suggest its Q1 results are in line with expectations.

Vestas halted production at its factories in China for Chinese New Year on 25 January but resumed operations on 15 February.

Its facilities are now operating at pre-outbreak production levels and are working to mitigate the impact of lost production time, the manufacturer added.

It is also using production capacity in China to offset challenges in other parts of the world where restrictions and disruptions are increasing — including in Spain, where it halted production at its facilities amid a nationwide lockdown.

Vestas' proposed dividend for 2019 will not be affected by its decision to suspend its 2020 guidance. It had suggested a payout of DKK 7.93/share (€1.06/share), up from DKK 7.44/share in 2018, equivalent to 30% of net profit for the year.

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