(ADPnews) - Dec 28, 2010 - German wind turbine maker Repower Systems AG (ETR:RPW) last week lowered its earnings guidance for the fiscal year ending March 31, 2011, due to project postponements.
Repower now forecasts a total performance of between EUR 1.25 billion and EUR 1.35 billion (USD 1.65 - 1.79m). Previously, the company projected full-year output in the range of EUR 1.5 billion to EUR 1.6 billion.
In line with the revised outlook, the company expects an operating margin of 5% to 7% against the previous projection of 7.5% to 8.5%.
Repower intends to implement an extensive cost reduction programme, in order to cope with the price and margin pressure. Among the planned measures is the purchase of cheaper components from India and China. Moreover, from 2011 on, the company plans to manufacture turbines in Asia and deliver them to USA, Australia and New Zealand.