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Vestas sees disastrous 2011 – CFO and Chairman resign

Vestas fell into a net loss of €166 million in 2011, compared to a profit of €156m in 2010, during what the company terms “a very challenging year”.

By Kari Williamson

In a statement, the wind turbine manufacturer says: “2011 was a very challenging year for the wind industry. The same applies to Vestas, which had to issue two profit warnings and abandon its Triple15 targets.”

The Global Wind Energy Council (GWEC) has, however, recorded a 21% growth in the worldwide wind market for 2011.

Only yesterday, Vestas said its CFO and Deputy CEO, Henrik Nørremark, is resigning after the Board had a “thorough briefing on the conditions which during the last months have led to profit warnings.”

Furthermore, Chairman Bent Erik Carlsen and Deputy Chairman Torsten Erik Rasmussen have informed the Board that they will not stand for re-election for the Board of Directors at the Annual General Meeting in March. Nor will Board Member, Freddy Frandsen.

Revenues for the year fell 15% to €5836m, partially due to postponed projects.

Tough times ahead

In the introduction to the annual report, CEO and President Ditlev Engel and Chairman Bent Erik Carlsen, say: “Following a 2011 that did not turn out as expected, we are now preparing for a challenging 2012 and a 2013, which may prove even more challenging.”

Vestas expects revenues in 2012 nonetheless to increase to €6.8-8 billion, but with an EBIT margin of only 0-4%.

The company warns the EBIT margin will be affected by the “too high production costs” for the V112-3.0 MW wind turbine and its GridStreamer technology. The wind turbine manufacturer also expects to incur development costs for the V164-7.0 MW offshore wind turbine.

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