By Renewable Energy Focus staff
Revenues rose by over a third to €6.9 billion and the EBIT reached €310m, up 24%.
Summing up 2010, Vestas says it was a “tough year” mentioning the death of two employees among its business partners in industrial accidents, the laying off of 3000 Vestas employees and a disappointing outlook for 2011 combined with a 50% fall in its share price.
Nonetheless, the intake of firm and unconditional orders reached 8673 MW, up 182% on 2009. Europe and Africa accounted for 49%, the Americas 29% and Asia/Pacific 22%.
However, Vestas produced and shipped 2025 wind turbines with an aggregate capacity of 4057 MW, compared to 3320 wind turbines and 6131 MW in 2009. The decline is due to the low order intake in 2009.
Vestas’ market share reached 16.3% of the global wind market in 2010, compared to 12.3% in 2009. However, according to the Global Wind Energy Council (GWEC), the global market decreased from 38.6 GW in 2009 to 35.8 GW in 2010.
Lost production factor
In an earnings presentation, Vestas President and CEO Ditlev Engel presented Vestas’ ‘lost production factor’ for the first time. At the beginning of 2009, this stood at 4.5%, but is now down to 2.8%.
LPF = (1-(actual output/potential output)) x 100
Engel said the aim is to get as close to 0% as possible, but to reach 0% is “unrealistic”.
Despite a tough year, Vestas increased its R&D spending 63% to €150 million and 9% of the workforce is now in R&D.
Furthermore, Vestas will present its new 6 MW wind turbine on 30 March. Engel declined to give any further information when prompted by the audience.
For 2011, Vestas expects revenues around €7bn and shipments of 6 GW.
Q1 could see, what Vestas calls, “a minor loss” – no profit guidance was given for the full year, but Vestas says it expects earnings to be affected by the fact that new products are only expected to generate moderate earnings contribution. Also, a few factories remain idle while they are being converted into V112-3.0 MW production.
Engel says the uncertainties from 2009 and 2010 will continue into 2011, although the market is showing signs of recovery.