News
28 April 2009 - Vestas “Mixed feelings” In line with guidance but layoffs in Europe
28 April 2009. Vestas “Mixed feelings” In line with guidance but layoffs in Europe
Vestas announced its Q1 2009 results. Compared to Q1 2008:
- Shipment of turbines increased by 21% (490 turbines)
- Revenues increased by 58% reaching EUR 1.1bn
- EBIT increased by 124% reaching EUR 76m
- Profit after tax increased by 70% reaching EUR 56m
Ditlev Engel, Vestas CEO, confirmed the group strategy, based on geographical diversification, with plants in Europe, in the US and in China: the goal is to have a 100% local supply chain to eliminate exchange rates.
The company announced 1 875 layoffs (600 in the UK, 1 275 in Denmark) because it anticipates a slowdown in its European activities due to the credit crunch, a lack of political action and adverse development in GDP, SEK and PLN. For the same reasons, the company decided to reduce its investment by EUR 200m in 2009 (from EUR 1bn to EUR 800m).
Concerning 2009, Vestas kept its previous guidance: revenue of EUR 7 200m and EBIT margin between 11 and 13%. According to Ditlev Engel, the restructuration costs are embedded in the 2009 forecasts.
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