Half year reports of big profits ahead -- Vestas and NEG Micon

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Denmark's two publicly owned wind turbine companies, Vestas and NEG Micon, are looking at a bright future, according to their half yearly reports published last month. Both expect growth during the rest of this year and especially in 2001. Indeed, Vestas' optimism is such that its share price rose by more than 15% on the news of its good results.

Vestas reports a turnover in the first six months of DKK 2267 million (EUR 304 million) and a profit before tax of DKK 298 million, an improvement on the first half of last year when turnover of DKK 2224 million gave a profit of DKK 275 million. NEG Micon's half yearly result was a loss before tax, as expected, of DKK 81 million on a turnover of DKK 1474 million, compared with a 1999 loss in the same period of DKK 35 million and a turnover of DKK 2453 million.

Both companies now say, however, that they are about to make serious money. In the second half of the year Vestas projects a turnover of DKK 4 billion and a profit of DKK 500 million. NEG Micon is budgeting with a turnover of DKK 3 billion and a profit of DKK 130-180 million. For the whole year Vestas expects a turnover of DKK 6.3-6.6 billion and NEG Micon a turnover of DKK 4.5 billion. Vestas' budgeted profit for the year has been adjusted upward to DKK 760-810 million and NEG Micon's to DKK 50-100 million.

Both companies admit to being hard hit by the hiatus in the American and Danish markets, though Vestas is looking at orders to the US for between 200 and 800 of its 660 kW unit for delivery in 2001. For the rest of this year, NEG Micon is expecting increased activity in Spain, Germany and in Denmark and also intends to cut costs by reducing expenditure.

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