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Vestas, a manufacturer of wind turbines, has a swing in operating profit

Vestas, a manufacturer of wind turbines, reported an unexpected operating loss for the first three months, contrary to analyst predictions. Its outlook for the entire year remained unchanged, despite the geopolitical uncertainties.

The Danish company posted an operating profit of 15 million euros, compared to a loss of 68 millions the previous year. Vestas surveyed analysts and the average forecast was a loss of 29 million euros.

Henrik Andersen, CEO of Vestas, said that "Vestas continued to improve its performance despite new events contributing to geopolitical insecurity and regionalisation".

The industry still faces many challenges. Onshore installations in Europe's key market fell short of expectations last year due to grid bottlenecks and slow permit processing. Also, more stringent financial conditions are stifling the growth.

The U.S. offshore industry, which is viewed as a growth market in the country, also suffers from inflation and supply chain problems.

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Vestas maintains its forecast for the full-year revenues of 18-20 billion euros with a profit margin of 4-7 percent.

In its earnings report, it stated that "despite ongoing geopolitical volatility and trade uncertainty is expected cause uncertainty, our execution of record-high backlog will drive increased revenue by 2025."

Vestas announced a 36% increase in its first quarter order intake, which came in at 3,135 Megawatts (MW), broadly in line analysts' estimates of 3,157MW. (Reporting and editing by Terje Solsvik, Stine Jacobsen)

(source: Reuters)