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Danish wind turbine manufacturer Vestas has released its annual financial report for 2011, sparking more dramatic changes to its executive management team.

The company recorded annual revenues of 5.8 billion euros and an earnings before interest and taxes (EBIT) margin before special items of 0.7% - a downgrade from its preliminary financial figures announced in January of 6 billion euros in revenue with an EBIT of zero. The results represent a substantial drop from Vestas' original forecasted earnings of 7 billion euros.

Vestas, which had already issued two prior profit warnings and abandoned its "Triple 15" targets (2015 sales goal of 15 billion euros in revenue and an EBIT margin of 15%), said in a company statement that the revised earnings were due to later-than-expected deliveries.

As a result of the revised financial report, Henrik Norremark, the company’s chief financial officer and deputy CEO, has stepped down - a move Vestas said is a direct consequence of the revised numbers. Norremark had been promoted less than a month ago as part of a corporate restructuring.

In addition, the current chairmen of Vestas’ board of directors - Bent Erik Carlsen and Torsten Erik Rasmussen - have announced they will not seek re-election to the board. Another board member, Freddy Frandsen, said he also would not stand for re-election.

The company did not specify if the changes to its board were related to its 2011 financial report.

Vestas noted that although its revenues were lower than expected, its order intake of 7.397 GW was on target.

“It should be emphasized that the projects in question have not been canceled, but postponed, and that they are expected to be handed over and recognized as income in 2012 - however, at a lower contribution margin due to higher costs than originally anticipated,” the company said in a statement.

Vestas was understandably less specific with its 2012 forecasts, which the company estimates will be in the range of 6.5 million to 8 million euros in revenue with an EBIT margin of approximately 14%, and shipments are expected to total around 7 GW.


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