TROUBLED wind turbine maker Vestas yesterday posted a 27 per cent decline in revenue in the third quarter, but improved earnings and reduced debt, which the Danish firm said was evidence that its turnaround plan was working.
Shares surged 13 per cent yesterday, after the firm raised its full-year free cashflow forecast to €500m-€700m (£420m-£588m), up from previous guidance of at least €200m. Earnings increased to €67m from €13m compared to the same period the previous year.
The firm’s order intake shot up to 1,547 megawatts in the third quarter, far above the 401 megawatts last year.
Vestas slashed jobs, cut costs and sacked its chief executive Ditlev Engel in August, as it struggled to return to profitability in a saturated market.
Engel was replaced by Ericsson veteran Anders Runevad on 1 September.
“[The results] are important results of the ongoing turnaround, and we remain focused on delivering according to plan in the last part of the year,” said Runevad.