The operating margin is now expected to be 5-7% compared to 7.5-8.5%.
REpower says the main reason for the change is the further increase in the number of project postponements, which is due in particular to financing commitments still pending.
Andreas Nauen, CEO of REpower Systems AG, explains: “Primarily this is due to projects being postponed – wind farms are being realized later than originally planned. In line with market forecasts, for our company and for the whole wind industry we expect further growth in the medium to long term and thereby an increasing demand for REpower onshore and offshore products.”
Cost cutting – looks to Asia
In response to the price and margin pressure, REpower’s executive board has already initiated cost reduction measures in order to achieve a sustainable improvement in the competitiveness of REpower.
In particular, this includes leveraging cost benefits to a greater extent by purchasing components in Asia, especially in China and India. The first phase of this development will largely focus on established suppliers with corresponding local production sites.
From 2011 on, the company is also planning to manufacture turbines in Asia. The wind turbines manufactured there are planned to be supplied to Australia, New Zealand and the USA.