Vestas Wind Systems raised its 2015 profit forecast on Thursday and said it would buy back shares after stronger than expected third-quarter results, sending its shares to their highest in over six years.
The world's largest wind turbine maker said operating profit rose 50 percent from a year ago to 232 million euros ($252 million), helped by a 17 percent rise in revenue and higher turbine prices, beating analyst forecasts of 201 million.
The company also said it would buy back shares of up to 1.12 billion Danish crowns ($163.2 million) starting on Thursday, sending its stock as much as 6 percent to 419.6 crowns, the highest since May 20, 2009.
"The share buy-back programme comes sooner than I had expected. Its a clear-cut signal of Vestas feeling very confident about the future," said Sydbank analyst Jacob Pedersen.
By 0845 GMT, shares in Vestas were up 3.9 percent while the Copenhagen main index was 0.5 percent higher.
The results and outlook mark a complete turnaround for the Danish company. It was hit hard by the global financial crisis and subsequent economic slump when renewable energy projects, often boosted by state funding, took a back seat.
The company ousted Chief Executive Ditlev Engel two years ago after a string of profit warnings, slashed its workforce and shut down some facilities. Engel was replaced by Anders Runevad who made turbines more price competitive.
"With greater clarity on deliveries for the remainder of the year and a very solid financial position, we are raising our guidance," Runevad said in the company's results statement.
Vestas said it now expected a profit margin on earnings before interest and tax of 9-10 percent, up from 8.5 percent previously, and for revenue of 8-8.5 billion euros this year instead of a minimum 7.5 billion.
In the third quarter, its revenue rose to 2.12 billion euros while the combined backlog of wind turbine orders and service agreements stood at 16.4 billion euros.
Vestas managed to get a higher price for its wind turbines in the quarter, said Alm. Brand Markets analyst Michael Friis Jorgensen.
The company's results showed that one megawatt generated 0.99 million euros in the third quarter this year compared with 0.85 million in the same period a year ago.
(Reuters)
