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Vestas reports lower Q2 net profit, announces share buyback

Vestas Wind Systems A/S on Aug. 15 reported net profit of €184 million for the second quarter of 2018, slightly down from €186 million in the prior-year period.

The company's revenue for the quarter stood at €2.26 billion, up from €2.21 billion a year ago. EBIT came in at €259 million, compared with €279 million in the same quarter of 2017.

The company's order backlog of wind turbines was at 13,521 MW in the most recent period, compared with 10,667 MW a year ago. Deliveries also increased year over year to 1,971 MW from 1,834 MW.

Looking forward, Vestas narrowed its 2018 guidance on revenue to range between €10 billion to €10.5 billion, from the previous range of €10 billion to €11 billion.

Aside from its financial results, Vestas announced that it will buy back shares worth up to 1.5 billion Danish kroner, or approximately €200 million.

Under the program, the company may repurchase no more than 15,614,595 shares, representing 7.6% of its share capital. Nordea has been tapped as lead manager of the share buy-back program.

The company is executing the program from Aug. 15 to Dec. 28 to adjust its capital structure and to meet obligations arising from share-based incentive programs to employees.

The Vestas board plans to propose a resolution at the 2019 annual general meeting to cancel shares acquired, which are not used for hedging purposes of share-based incentive programs.

As of Aug. 14, US$1 was equivalent to 6.56 Danish kroner.