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Vestas Turns To Profit In Q3; Lifts 2014 Outlook

Danish wind turbine maker Vestas Wind Systems A/S (VWDRY.PK) reported that its net profit for the third quarter of 2014 was 102 million euros, compared to a loss of 87 million euros in the third quarter of 2013. Earnings per share were 0.46 euros, compared to a loss of 0.43 euros per share in the previous year.

EBIT before special items increased 96 million euros year-over-year to 163 million euros, primarily due to higher volume and to a lesser extent also caused by improved average margins.

Quarterly revenue was 1.813 billion euros, an increase of 26 per cent from last year's 1.442 billion euros.

Based on the expected delivery plan for the remainder of the year and the improved cost base, Vestas upgraded 2014 guidance for revenue, EBIT margin before special items and free cash flow. Revenue is upgraded from minimum 6 billion euros to now range between 6.4 billion euros and 7.0 billion euros including service revenue, which is expected to grow.

Vestas now expects to achieve an EBIT margin before special items of 7-8 per cent compared to the previous guidance of minimum 6 per cent. The service margins are expected to remain stable.

The free cash flow is now expected to range between 400 million euros and 700 million euros in 2014, compared to prior range of minimum 300 million euros.

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Inflation data from the U.S. garnered maximum attention this week on the economics front, along with the interest rate decision by the European Central Bank. Read our stories to find out how these two key events are set to influence monetary policy in the months ahead. Other main news from the U.S. were the release of the minutes of the latest Fed policy session and the jobless claims data. Elsewhere, the interest rate decision by the Bank of Canada was also in focus.

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