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Vestas Q1 Loss Widens, Cuts FY22 Outlook; Stock Down

Shares of Vestas Wind Systems A/S (VWDRY.PK) were losing around 8 percent in the morning trading in Denmark after the wind turbines maker reported Monday wider net loss in its first quarter, despite higher revenues.

Further, the company trimmed its fiscal 2022 outlook mainly reflecting the current circumstances and the revenue and profits forfeited in Ukraine and Russia.

For the first quarter, loss was 765 million euros, compared to last year's loss of 64 million euros.

Operating profit or EBIT before special items was negative 329 million euros, compared to prior year's negative 78 million euros. EBITDA was negative 585 million euros, compared to prior year's positive 128 million euros.

For the first quarter, Vestas' revenue amounted to 2.49 billion euros, a growth of 27 percent from last year's 1.96 billion kroner, despite supply chain disruptions.

Order backlog was 48.9 billion euros, an increase of 9.4 percent compared to same quarter last year.

Looking ahead for fiscal 2022, revenue is now expected to range between 14.5 billion euros and 16.0 billion euros, lower than previously expected 15.0 billion euros and 16.5 billion euros.

Service revenue is now expected to grow minimum 10 percent, compared to previous expectation of around 5 percent.

Vestas expects to achieve an EBIT margin before special items of negative 5 percent to 0 percent, compared to previously expected 0 percent to positive 4 percent.

Total investments are still expected to amount to around 1 billion euros in 2022.

In Denmark, Vestas Wind Systems shares were trading at 168.74 Danish kroner, down 7.70 percent.

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