Home Americas Vestas: Big blow from competition, proposed US tax bill
Vestas: Big blow from competition, proposed US tax bill

Vestas: Big blow from competition, proposed US tax bill

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** Shares of Danish turbines maker plunge 17.5 pct, heading for their worst day since Jan 2012
** Stock wipes off YTD gains and the move wipes $3 billion from co’s market value
** Reports adjusted oper profit well below forecast: 355 million euros vs. cons of 404 million euros
** Cites weak Q3 to rising competition
** Lowers 2017 guidance on uncertainty regarding regulations in the US market (tax reform bill)
** Proposed US tax reform bill includes cuts to renewable energy tax credits
** US was Vestas’s largest market corresponding to one third of total order intake in 2016, per co’s 2016 annual report
** Vestas shares have lost more than 1/5th of their value since the US tax reform bill was proposed
** CFO says some US component orders expected this year could be at risk if proposed tax bill goes through
** Twice 30-day daily avg volume through in 30 mins of trading
** Bottom performer on STOXX 600
** Peer Siemens Gamesa down 3 pct

Source: Reuters
Anand Gupta Editor - EQ Int'l Media Network

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