in News Departments > New & Noteworthy
print the content item

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.



Trachte Inc._id1770
Latest Top Stories

Wind And Solar Helped California Grid During Challenging Summer

According to the California Independent System Operator, the state suffered from heat waves and drought this year, and wind power played a "significant role" in keeping the lights on.


Recapping The Wind Industry's Third-Quarter Deals

Mercom Capital Group recaps investment and merger and acquisition activity during July, August and September.


Yearly Installed Capacity Figures Already Beat 2013 Numbers, More Wind On The Way: AWEA

While the American Wind Energy Association (AWEA) lobbies Congress to extend the production tax credit, the association notes wind projects now under construction signal a vibrant 2015.


Yahoo Inks Contract To Buy Kansas Wind Power

The Internet company plans to log in to the Alexander wind project, which is being built by community developer OwnEnergy.


Could Initial Offshore Wind Projects Crash New England's REC Market?

Some are concerned that the first offshore wind projects could negatively impact pricing of renewable energy credits (RECs) in New England.

Renewable NRG_id1934
BG 2015DblBox_id2032
Hybrid Energy Innovations 2015
Canwea_id1984