Wind turbine maker Vestas posted a weaker-than-expected third-quarter profit on Wednesday as a result of softer deliveries and costs incurred from a broken blade at a German offshore project, sending the Danish company's shares lower.
Vestas also reported lower order bookings than expected by analysts for the July to September period, down 27 per cent from a year earlier, which it said was primarily due to a lower intake for orders on US onshore turbines.
Shares in the world's biggest wind turbine maker outside China fell by nine per cent before partially recovering to trade 4.2 per cent lower at 11:07 GMT after Vestas reported earnings before interest, tax and special items of €483 million ($539 million), lagging the €526 million forecast in a company-compiled poll of analysts.
Vestas said it took a hit after a huge turbine blade broke in July at the He Dreiht wind farm developed by utility EnBW.
"That's not for free, that has quite a large operating cost," Vestas CEO Henrik Andersen told investors, while declining to elaborate.
Vestas CFO Jakob Wegge-Larsen said the broken blade was an isolated incident and that the slowdown in order intake should not be seen as a sign of a weaker US onshore wind market, as bookings vary significantly in the short term.
"It is rare, in our history, that we have seen such strong demand for electricity. So it's hard for us to be negative about it, quite the opposite," Wegge-Larsen told Reuters.
Vestas narrowed its adjusted full-year operating margin outlook to between 7.5 per cent and 8.5 per cent from seven per cent to nine per cent seen previously, and its sales outlook for the year to between €20.5 billion and €21.5 billion from €20 billion-€22 billion.
JPMorgan analysts, who have an "overweight" rating on the stock, said the narrowed guidance implied a roughly six per cent cut to full-year adjusted operating profit expectations.
(Reporting by Stine Jacobsen; Editing by Terje Solsvik and Alexander Smith)