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Vestas Q4 Pre-tax Profit Down 14%; Plans EUR 200 Mln Share Buyback Program

Vestas Wind Systems A/S (VWDRY.PK) reported that its profit before tax for the fourth quarter decreased 14 percent to 394 million euros from 458 million euros last year.

Operating profit or EBIT declined 24 percent to 385 million euros from 504 million euros in the prior year.

Gross profit amounted to 576 million euros, a decrease of 14 percent from 667 million euros last year.

Revenue for the quarter declined 6 percent to 3.12 billion euros from 3.31 billion euros in the prior year.

For fiscal 2018, Vestas expects revenue to range between 10 billion euros and 11 billion euros, including service revenue, which is expected to grow. Vestas expects to achieve an EBIT margin of 9 percent to 11 percent, with the service EBIT margin remaining stable.

The company projects total investments for the year to amount to about 500 million euros, and the free cash flow to be minimum 400 million euros in 2018.

Vestas' board of directors has recommended to the Annual General Meeting that a dividend of DKK 9.23 per share, compared to DKK 9.71 per share last year, and equivalent to 29 percent of the net profit for the year, be distributed to the shareholders.

In addition, a new share buy-back program of DKK 1.5 billion, or about 200 million euros, is planned by Vestas to be initiated shortly and to be conducted during the period until the disclosure of the interim financial report for first quarter of 2018 on 4 May 2018.

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