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Shares fall as Vestas reports heavy losses

Global turbine manufacturing leader cites order delays worldwide as reason for 23 per cent second qu

Shares of the world's biggest wind turbine manufacturer, Vestas, fell by 23 per cent on Wednesday, after it reported a second-quarter loss and cut its sales forecast.

Shares plunged on the Copenhagen stock market as the Denmark-based company reported €119m (£98m) in net losses for the second quarter, from a profit of €43m a year ago.

Revenue was €1bn in the quarter, falling by 17 per cent, compared to the sum of €1.2bn a year earlier.

Vestas cited delays in orders from US, Spain and Germany as the reason for the losses, claiming that it was a late reaction to the credit crunch due to the recession.

Last summer Vestas closed down its Isle of Wight manufacturing facility. It also intends to cut 600 more jobs in Denmark.

Chief executive Ditlev Engel, however, said that the company will proceed with expansion plans in North America and elsewhere.

While Vestas has reached a record 3,031MW orders in the second quarter of this year and landed major contracts with the US, Australia and China, analysts are worried about the larger implications for the renewable energy industry.