LM announces jobs cuts and profit fall

DENMARK: LM Wind Power has announced a 41% fall in profits for 2011 and 180 job cuts to its North American operation.

LM 73.5-metre blade for Alstom's 6MW turbine
LM 73.5-metre blade for Alstom's 6MW turbine

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The blade manufacturer also said sales had declined 2.7% to €705 million. It said the job cuts have been made as a result of falling orders.

The company's Spanish factory in Ponferrada was scaled down, while production at the Urumqi plant was stopped altogether.

LM blamed the European financial crisis and overcapacity in China for the downturn. The company also described 2011 as a "peak year" for warranty issues, with €42.9 million spent.

Overall the 1H results for the company were good with EBITDA up 26% on 2010. European orders were up 16%, with India and China also seeing sales rises.

According to LM, the situation changed in Q3 as budgets became squeezed by market conditions and the economic uncertainty.

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