Posted by: vickim57 | 18 August 2009

Vestas’ half year: makes profits, albeit weaker than expected; cuts workforce

Today, Tuesday 18 August, Vestas announced its half-yearly report. The company has made profits yet has laid off staff in Denmark and the UK. Below are some press reports from today. Supporters of the sacked Vestas workers held a picket today at the UK HQ of Vestas in Warrington – pictures of that later.

Market Watch: Vestas reiterates outlook even as profit falls 34%
Danish turbine maker Vestas Wind Systems on Tuesday reported a 34% drop in second-quarter profit to 43 million euros, partly as a result of higher administrative expenses. Revenue, meanwhile, rose 11% to 1.21 billion euros. The company reiterated that it expects revenue to rise by 20% to 7.2 billion euros this year and operating margin to be between 11% and 13%

Reuters India: Vestas keeps 2009 outlook despite below fcast Q2
Tue Aug 18, 2009 12:20pm IST
COPENHAGEN, Aug 18 (Reuters) – Danish wind turbine maker Vestas (VWS.CO: Quote, Profile, Research) posted weaker-than-expected operating profits on Tuesday but stuck to its full-year 2009 guidance.
Earnings before interest and tax (EBIT) fell to 78 million euros ($110.3 million) in April-June from 92 million euros in the same quarter last year, lagging an average estimate of a rise to 121 million euros in a Reuters poll of 19 analysts.
Analysts’ estimates ranged from 67 million to 209 million euros.
Vestas stuck to its outlook for full-year 2009 sales of 7.2 billion euros and an operating profit margin of between 11 percent and 13 percent.
(Reporting by Teis Jensen)

Reuters: Vestas CEO sees pick-up in wind turbine market
Tue Aug 18, 2009 9:03am BST
COPENHAGEN, Aug 18 (Reuters) – Danish wind turbine maker Vestas’ (VWS.CO) sees a pick-up in its markets after a very slow half year, Chief Executive Ditlev Engel said on Tuesday after the company posted second-quarter earnings.
“There is a pick-up in the market. No doubt the first half of 2009 has been very slow, but we are actually seeing that things are moving again now,” Engel said on CNBC television.
“There is life out there even though you can’t see it in the order backlog,” Engel said.
The company posted weaker-than-expected operating profits for the second quarter on Tuesday but stuck to its full-year 2009 guidance, though many analysts expected a downgrade.
(Reporting by Teis Jensen)

Your Renewable News: Vestas Wind Systems releases half year financial report
TUESDAY, AUG 18, 2009
Interim financial report, second quarter 2009 – No. 1 in Modern Energy retains its forecast for 2009
Vestas generated second-quarter revenue of EUR 1,211m, an increase of 11 per cent, realising a decline in EBIT of 15 per cent to EUR 78m relative to Q2 2008. In general, quarter-on-quarter fluctuations are due to changes in the activity level and variations in the contract types.
Net working capital stood at 11 per cent of expected annual revenue, against (1) per cent the year before. The order backlog of firm and unconditional orders amounted to EUR 4.0bn at 30 June 2009.
In spite of the weak order intake since the onset of the credit crisis, Vestas retains its forecast for 2009. Since the end of the reporting period, Vestas has recorded an order intake of EUR 0.7bn with unchanged payment patterns.
Additionally, Vestas’ corporate Contract Review Board will be evaluating several contracts with a total value of more than EUR 4.4bn in the upcoming period. On 28 April, Vestas announced the necessity of lay-offs in Northern Europe due to lack of demand.
In Denmark, 1,142 employees were laid off, whilst 425 employees were made redundant in the UK last week. At the same time, Vestas continues to expand its new factories in the USA and China. As from Q2 2009, Vestas will be reporting on quarterly developments in its non-financial highlights in order to give prominence to the performance in achieving its environmental and safety targets.


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