in News Departments > New & Noteworthy
print the content item

Citing "economic difficulties in the Western economies," Ditlev Engel, president and CEO of Denmark-based turbine manufacturer Vestas, took steps to reduce company costs in the face of uncertainty in several key markets, including the U.S.

Vestas says it will reduce its fixed costs globally by at least 150 million euros annually by the end of 2012. Additionally, the company has abandoned its 2015 sales goal of 15 billion euros ($21 billion) in revenue and a margin on earnings before interest and tax of 15%.

The company says that despite unsatisfactory earnings in 2011, its business remains strong.

"We have satisfied customers, all of our production units are extremely busy and we recorded a strong order intake in October," Enegel notes. "However, we believe that at least the Western economies are heading for even more economic difficulties in the years ahead. This will affect Vestas and the rest of the wind power industry."

Policy uncertainty surrounding the extension of the production tax credit (PTC) in the U.S. was also a key factor.

"Due to uncertainty about the PTC, Vestas has received an extraordinarily large number of orders from the U.S. for installation by the end of 2012," Engel says. “However, this situation will change for the worse if the tax credit lapses from 2013."



Trachte Inc._id1770
Latest Top Stories

Senate Passes Tax Extenders Bill With Wind PTC Extension

The legislation, which passed in the U.S. House earlier this month, will renew the critical production tax credit through the end of 2014 - giving developers only about two weeks left to start construction.


Transmission Study Shows Nebraska Could Handle A Lot More Wind Power

A new report released by the Nebraska Power Review Board finds that the state already has enough infrastructure to accommodate at least 2 GW of additional wind generation.


Can Wind Energy And Birds Coexist? Environmental Group Says Yes

The Environmental Defense Fund, a supporter of responsible wind energy development, points out ways to help mitigate impacts of turbines on birds and bats.


Another Study Finds Wind Turbines Do Not Affect Nearby Property Values

Research conducted by the University of Guelph focused on regions in Ontario, and the conclusion echoes that of previous studies.


Too Little, Too Late? U.S. House Approves Wind PTC Extension

The U.S. House of Representatives has passed a tax extenders package that would renew the wind production tax credit (PTC) and about 50 other expired tax breaks through 2014. The wind industry argues the short-term fix is virtually no fix at all.

Hybrid Energy Innovations 2015