Wind turbine maker's shares tumble on profit alert

October 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: Taiwan's HTC says profit down 30 percent

Related Stories

Taiwan's HTC says profit down 30 percent

April 6, 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.

Sacked workers to open new wind turbine factory

July 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

February 1, 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.

Vestas Announces New 7 megawatt offshore wind turbine

April 1, 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 surprised everyone ...

Recommended for you

Interactive tool lifts veil on the cost of nuclear energy

August 24, 2015

Despite the ever-changing landscape of energy economics, subject to the influence of new technologies and geopolitics, a new tool promises to root discussions about the cost of nuclear energy in hard evidence rather than ...

Smart home heating and cooling

August 28, 2015

Smart temperature-control devices—such as thermostats that learn and adjust to pre-programmed temperatures—are poised to increase comfort and save energy in homes.

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.