Danish wind turbine manufacturer Vestas has revised its outlook for 2021 to take into account supply chain constraints, cost inflation, and restrictions in key markets caused by Covid-19 that are likely to persist through the second half of the year.
Vestas now expects a revenue of EUR15.5-16.5billion (USD18.2-19.4 billion), where they were previously expecting a revenue EUR 16-17 billion (USD18.9-20 billion) for the full year.
Nevertheless, Vestas had a strong Q1 2021, posting a revenue of EUR3.5 billion (USD4.1 billion), which was a year-on-year increase of 1.9 percentage points.
Henrik Andersen, group president and ceo, said: “This increase was primarily driven by underlying improved operations and execution, but hampered by the continued cost inflation impacting global industrials.”
The company also recorded a strong order intake. “Our service business and wind turbine order intake grew 23 percent and 28 percent respectively year-over-year, which resulted in an all-time high order backlog of more than EUR 48 billion [USD56.5 billion],” Andersen explained.
“To reflect the challenges from cost inflation and the global environment we operate in, we have revised our guidance for 2021 and we remain focused on executing our priorities for the year, which enable us to deliver on our commitments, drive the energy transition, and strengthen our market leadership,” Andersen added.