Vestas cuts 2010 forecasts, shares plunge

Vestas shares tumbled more than 17% on the Copenhagen stock market
King Mohammed VI of Morocco inaugurated this 250 mln euro ($300 mln) wind farm near Tangiers on June 28. Shares in Vestas slumped on Wednesday after the Danish wind power group cut this year's earnings and sales targets following a second quarter loss.

Shares in Vestas slumped on Wednesday after the Danish wind power group cut this year's earnings and sales targets following a second quarter loss.

The company, the world leader in the wind turbine industry, a key component in efforts to combat , said 2010 sales would now come in at six billion euros (7.7 billion dollars), rather than seven billion euros.

The operating profit margin would be in a range of five to six percent, down from the 10-11 percent given previously, it said.

The news sent Vestas shares tumbling more than 17 percent in Copenhagen where the broader market was down nearly two percent.

For the second quarter, the company reported a net loss of 119 million euros, after a of 43 million euros in the 2009 period, with sales falling 17 percent to one billion euros.

At the same time, the workforce grew six percent from the first quarter to nearly 22,400 but Vestas said it was cutting planned headcount growth this year to 3,000 from the previous 3,400.

This would mean the company would employ 23,500 people worldwide at the end of the year, it added.

On the positive side, Vestas said second quarter new orders were worth a record 3.03 billion euros.


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(c) 2010 AFP

Citation: Vestas cuts 2010 forecasts, shares plunge (2010, August 18) retrieved 19 August 2019 from https://phys.org/news/2010-08-vestas-plunge.html
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