VWDRY - Vestas slashes dividend while warning on further supply chain disruptions

Vestas Wind Systems (OTCPK:VWDRY -3.3%) sinks after cutting its dividend payout by 78% to €0.05/share from €0.23/share and below the €0.10 forecast by analysts, while warning of continuing supply chain disruptions. Vestas reported Q4 net profit of €20M ($23M), far lower than the €115M analyst consensus, but Citigroup analysts focused on the larger than expected dividend cut, saying the earnings results are "largely a non-event." The company also reiterated preliminary full-year earnings released last month, when it said 2021 revenues totaled €15.6B, the low end of its €15.5B-€16.5B guidance range. Vestas' 2021 EBIT before special items was €461M, for an operating profit margin of 3% vs. guidance of ~4%; the company forecasts 2022 profit margin of 4% at best and potentially zero. "Together with rising energy prices, the supply chain disruptions and accelerated cost inflation from raw materials, transport, and turbine components, continued to amplify costs throughout the year, which

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Vestas slashes dividend while warning on further supply chain disruptions