Vestas (VWS.CO), opens new tab, the world's largest maker of wind turbines, reported on Thursday a surprise adjusted operating loss for the first quarter, hit by lower project deliveries, but stuck to its earnings guidance for the year. It reported an operating loss before special items of 68 million euros ($73 million) against a year-earlier profit of 40 million, on a 5% drop in sales. The mean forecast in a poll of analysts compiled by Vestas was for a 25 million euro profit.
Vestas Wind Systems A/S said it expects increased costs from a backlog of wind turbine orders and service agreements to drag down full year earnings but declined to give details on knock-on effects from the broader quality issue affecting the industry. A key supplier of blades to Vestas published a profit warning last month after higher inspection and repair costs after it found issues at one blade type at one of its factories. Investors have been questioning whether there could be an impact for the Danish company as concerns grow about the fast ramp up of the sector.