Vestas Falls as Order Intake Seen Too Weak: Copenhagen MoverGelu Sulugiuc
Vestas Wind Systems A/S fell after Carnegie Research said the company’s order intake was weak and likely to erode cash flow.
Vestas fell as much as 2.3 percent to its lowest since March 18, with trading volume at 37 percent of the three-month average. The stock, today’s worst performer in Copenhagen’s benchmark index, fell 1.1 percent at 11:53 a.m. in the Danish capital. The OMX Copenhagen 20 index rose 0.5 percent.
Vestas has lost money for two years after overcapacity in the wind turbine industry pushed down prices. The company announced four orders totaling 271 megawatts in the first quarter. It will reveal its full order intake for the period, including unannounced contracts, when it reports quarterly results on May 8.
“We are concerned about the weak intake, which has had a negative effect on cash flow due to lower prepayment,” Claus Almer, an analyst at Carnegie Research, wrote in a note to clients. “If it continues, it could rekindle speculation of a possible share capital increase.”
Vestas reduced in February its shipments forecast for 2013 to an interval of 4 gigawatts to 5 gigawatts of turbines from previous guidance of about 5 gigawatts.
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