On Friday morning, the share in the wind turbine manufacturer Vestas is heading for its biggest drop on the stock exchange in several months. Shortly before 11 a.m., the share fell by more than seven percent, which is the biggest drop in the leading Danish C25 index, which almost exclusively consists of red numbers.
According to Jacob Pedersen, head of equity research at Sydbank, this is related to bad news from competitor Siemens Gamesa. There are problems with the supply chain, and the financial expectations for the year have been lowered.
- Things are not arriving on time, and that makes the wind turbines much more expensive than expected. In addition, the price increases that are being tried to be passed mean that customers are taking longer to order the wind turbines. And that means that the arrival of orders is being pushed. All of this could also hurt Vestas. That's why the stock is reacting, he says.
According to the head of stock analysis, the adversity is also amplified by the fact that the stock had a good day on the stock exchange on Thursday.
If the adversity holds until the stock exchange closes, it will be the biggest drop for the stock in one day since November 3, when it lost 18.2 percent of its value. The reason for the jaw-dropping stock market, which was the biggest in five years, was that the company had to lower its expectations for the year.
Here, it was also the supply chain that was teasing. This was done with reference to bottlenecks in the supply chain due to corona. This makes it more difficult for Vestas to obtain the components and goods that are used in production, and they have also become more expensive.
Jacob Pedersen from Sydbank estimates that the problems with getting things delivered to the turbines and the high raw material prices will last for several more quarters.
- The only way to counter this is by raising sales prices. But that is not something that will have a major effect in 2022. So we are also looking at a year where earnings will be significantly lower than they have been for Vestas for a long time, he estimates.
Ritzau
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