Vestas' revenues and profits up but no relief for supply-line cramp

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Vestas is still battling delivery times of 15 months for key components. Presenting its first quarter 2007 results, Vestas admitted the situation was unlikely to change for some time. It reported rising revenues and profit, but as yet has not achieved an even spread of business through the year. The high season for turbine sales traditionally falls in the last quarter. Turnover rose to EUR 760 million compared with EUR 715 million in the same period last year, with earnings before interest and tax moving from EUR 6 million to EUR 20 million. Europe is still Vestas' largest market, but sales to the US have nearly doubled and now return a profit, unlike in early 2006. Vestas maintains its forecast for sales of EUR 4.5 billion in 2007 and a profit margin of 7-9%. The goal for 2008 remains a profit margin of 10-12% and a market share of 35%, compared with 28% today. Vestas' share price has risen from DKK 140 to DKK 380 over the past year. It was barely affected by the recent results.

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