By Dominic Chopping
Vestas Wind Systems AS on Thursday cut its dividend and warned of continuing supply-chain disruptions as its fourth-quarter net profit missed expectations.
Vestas posted net profit of 20 million euros ($23 million), against a EUR115 million forecast from a FactSet poll, and declared a dividend of 0.37 Danish kroner (6 U.S. cents) for 2021, down from DKK1.69 the previous year.
The Danish wind-turbine maker last month prereleased quarterly revenue of EUR4.55 billion, pre-items operating profit of EUR358 million and warranty provisions of EUR287 million. The company also prereleased order intake of EUR2.5 billion, compared with EUR4.0 billion a year earlier, and total turbine and service order backlog of EUR47.3 billion, compared with EUR42.9 billion.
"Together with rising energy prices, the supply chain disruptions and accelerated cost inflation from raw materials, transport, and turbine components, continued to amplify costs throughout the year, which severely impacted profitability," Chief Executive Henrik Andersen said Thursday.
"With supply-chain disruptions expected to continue throughout the year, 2022 will be challenging for the industry."
For 2022, the company said it anticipates revenue of between EUR15.0 billion and EUR16.5 billion, a pre-items earnings before interest and taxes margin of 0%-4% and total investments of around EUR1 billion.
Service revenue is expected to grow by approximately 5% in 2022, with a service Ebit margin of approximately 25%, the company said.
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(END) Dow Jones Newswires
February 10, 2022 03:05 ET (08:05 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.