Vestas Lowers 2024 Outlook, Shares Drop
Danish wind turbine maker Vestas has lowered its outlook for 2024, citing macroeconomic headwinds and project delays.
Key Points:
* Vestas now expects revenue of EUR 14-16 billion in 2024, down from the previous forecast of EUR 16-18 billion. * The company also lowered its EBIT margin target to 5-7%, from the previous 7-9%. * Vestas shares fell by more than 5% in early trading on the news.Vestas CEO Henrik Andersen said in a statement that the company is "facing a number of challenges in 2023, including inflation, supply chain disruptions, and geopolitical uncertainty." He added that these challenges are expected to continue into 2024.
Vestas is not the only wind turbine maker that is facing challenges. Siemens Gamesa and GE Renewable Energy have also lowered their outlooks for 2023 and 2024.
The wind industry is facing a number of headwinds, including rising costs, project delays, and competition from other renewable energy sources. However, Vestas remains optimistic about the long-term prospects for the industry.
Andersen said that Vestas is "well-positioned to capture the growth opportunities in the global wind market." He added that the company is "investing heavily in new products and technologies to stay ahead of the competition."
Vestas is a leading global wind turbine manufacturer. The company has installed more than 130 gigawatts of wind capacity in over 80 countries.
