Vestas abandons 2015 sales, profit targets

Nov 9, 2011 - Danish wind-turbine maker Vestas Wind Systems A/S (CPH:VWS) said today it will not be able to achieve its 2015 goals for sales and profit in view of the weak economic development.

The so-called 'Triple15' growth target included revenue of EUR 15 billion (USD 20.53bn) and operating margin of 15%, to be achieved by 2015.

Dropping these ambitions, Vestas will as well launch a new company organisation and cut fixed costs by EUR 150 million by 2012. Further details on the changes, which will also comprise job cuts, will be announced on February 8, 2012, the company said.

Vestas plans on a high single-digit operating margin in the medium term and a hike in market share. Revenue in the service segment is seen to rise faster than that in wind power, according to the firm.

After releasing preliminary third-quarter figures on October 30, Vestas confirmed today a net loss of EUR 60 million against a profit of EUR 187 million a year earlier.

Vestas guides for full-year revenue of some EUR 6.4 billion, versus formerly forecast EUR 7 billion, and for operating margin of around 4%, versus 7%, the company said on October 30.

(EUR 1.0 = USD 1.369)

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