Vestas misses 2011 revenue target by 16%

DENMARK: Vestas has missed its revenue target for 2011 by 16% amid what the company describes as a "challenging year".

Vestas CEO Ditlev Engel... under pressure following poor results
Vestas CEO Ditlev Engel... under pressure following poor results

The 2011 revenue figure of €5.8 billion also falls below Vestas' own preliminary financial figures in January. Vestas said this was due to "later-than-expected deliveries".

It also posted an operating loss of EUR60 million.

Following the resignation of deputy CEO Henrik Norremark and the decision of chairman Bent Carlsen not to seek reelection, the results increase the pressure on the position of Vestas CEO Ditlev Engel.

Vestas originally forecast revenue of €7 billion. Orders for 2011 were 7.39GW, at the lower end of the company's forecast.

For 2012, Vestas said it expects a revenue of €6.5 billion to €8 billion. It said its EBIT margin would be affected by costs related to its new V112 and Gridstreamer turbines.

The company has apportioned some of the blame for its poor performance in 2011 to operational problems relating to the V112 and Gridstreamer products. This includes R&D costs and a failure to bring its generator factory online.

The results follow some disappointing financial announcements from Vestas including the abandonment of its Triple 15 targets and two consecutive profit warnings.

Today it was announced chairman Bent Carlsen and deputy chairman Torsten Rasmussen have informed the board they will not be seeking re-election. Yesterday, deputy CEO and CFO Henrik Norremark resigned.

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