Wind turbine maker's shares tumble on profit alert

Oct 31, 2011
Shares in Danish company Vestas, the world leader in the wind turbine industry, plunged by 20 percent on Monday after the company issued a full-year profit warning over delays on several projects.

Shares in Danish company Vestas, the world leader in the wind turbine industry, plunged by 20 percent on Monday after the company issued a full-year profit warning over delays on several projects.

"The commissioning of Vestas' new generator factory in Travemuende, Germany is not progressing as planned ... Vestas has chosen to postpone the handing over of a number of projects, primarily in Europe," it said in a statement.

Vestas said the changed delivery plans for the rest of 2011 meant that it now expected full-year sales to come in around 6.4 billion euros ($8.9 billion), down from the previously expected 7.0 billion.

The margin on earnings before interest and tax, or EBIT, was to come in at 4.0 percent for the full-year, instead of 7.0 percent.

The Vestas share was down by 20 percent in midday trading at 89.20 kroner on a exchange down by 2.25 percent.

The company said that " in production and not least the practical challenges in relation to installation of turbines during the last months of the year, like for instance weather risks, lack of grid connections and corresponding incidences, may still cause further delays affecting Vestas' results for 2011."

Vestas' chief executive Ditlev Engel stressed the projects "will of course be completed during 2012" and added that "earnings on the individual projects are still satisfactory."

The company also released its third early, showing a net loss of 60 million euros compared to a profit of 187 million a year earlier.

Sales for the period dropped to 1.34 billion from 1.92 billion a year ago.

Explore further: Alibaba steals Yahoo's thunder ahead of IPO

add to favorites email to friend print save as pdf

Related Stories

Vestas Announces New 7 megawatt offshore wind turbine

Apr 01, 2011

(PhysOrg.com) -- Vestas Chief Executive Officer Ditlev Engel announced in London their new V164 wind turbine, designed specifically for offshore wind power. Optimized for conditions in the North Sea, Vestas ...

Sacked workers to open new wind turbine factory

Jul 25, 2010

Workers who lost their jobs when an Isle of Wight wind turbine factory closed down plan to open their own turbine plant on the same industrial estate as the former business.

Revived Infineon raises full-year targets

Feb 01, 2011

German semi-conductor company Infineon raised on Tuesday its 2011 sales and profit margin targets after posting a more than three-fold increase in net profit for the first quarter of its fiscal year.

Taiwan's HTC says profit down 30 percent

Apr 06, 2009

Taiwan's smartphone maker HTC Corp posted a year-on-year 30 percent fall in first quarter net profit as the global economic meltdown hit sales, the company said Monday.

Recommended for you

Weibo IPO below expectations, raises $285.6 mn

10 hours ago

Sina Weibo sold fewer shares than expected in its US IPO which was priced below expectations ahead of a Thursday listing that takes place after tech selloffs on Wall Street.

'Chief Yahoo' David Filo returns to board

11 hours ago

Yahoo announced the nomination of three new board members, including company co-founder David Filo, who earned the nickname and formal job title of "Chief Yahoo."

Fired Yahoo exec gets $58M for 15 months of work

11 hours ago

Yahoo's recently fired chief operating officer, Henrique de Castro, left the Internet company with a severance package of $58 million even though he lasted just 15 months on the job.

IBM posts lower 1Q earnings amid hardware slump (Update)

21 hours ago

IBM's first-quarter earnings fell and revenue came in below Wall Street's expectations amid an ongoing decline in its hardware business, one that was exacerbated by weaker demand in China and emerging markets.

User comments : 0

More news stories

Tiny power plants hold promise for nuclear energy

Small underground nuclear power plants that could be cheaper to build than their behemoth counterparts may herald the future for an energy industry under intense scrutiny since the Fukushima disaster, the ...

Clean air: Fewer sources for self-cleaning

Up to now, HONO, also known as nitrous acid, was considered one of the most important sources of hydroxyl radicals (OH), which are regarded as the detergent of the atmosphere, allowing the air to clean itself. ...

Turning off depression in the brain

Scientists have traced vulnerability to depression-like behaviors in mice to out-of-balance electrical activity inside neurons of the brain's reward circuit and experimentally reversed it – but there's ...