The CEO of Danish wind turbine manufacturer Vestas warned about the impact of tariffs and trade barriers on Wednesday, with the company lowering its revenue guidance for the year, reports CNBC.
In its earnings report for the second quarter of 2018, Vestas said that as a result of the implementation of tariffs in the US, prices of US steel and imported components were expected to increase.
"We are a global company, present in 70 markets with a global supply chain, and of course trade barriers and tariffs is a negative for any global company, and so also for Vestas," Anders Runevad told CNBC's "Squawk Box Europe" on Wednesday.
"We have a big manufacturing footprint … regionally, so we of course can take mitigating actions within our supply chain and that's what we are doing, but of course it is a concern when we see tariffs being introduced," Runevad added.
In the second quarter of 2018, Vestas' revenue came in at 2.26 billion euros ($2.56 billion), while the intake of firm and unconditional wind turbine orders hit 3,807 megawatts which Runevad said led to an "all-time high order backlog."
Vestas narrowed its 2018 guidance for revenue to between 10 billion euros and 10.5 billion euros, compared to previous guidance of 10 billion euros to 11 billion euros. The business also launched a 200 million euro share buyback scheme, with shares rising by more than 7.0 per cent in early deals Wednesday.
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