Vestas Wind Energy: warns on profits, chairman resigns

Danish wind power system company Vestas Wednesday reported a net loss of 166 million euros (220 million dollars) for 2011. At Vestas Wind Systems A/S’ board meeting discussing the annual report for 2011, the chairmanship, Bent Erik Carlsen and Torsten Erik Rasmussen, informed the Board that they will not stand for re-election for the Board of Directors at the Annual General Meeting on 29 March 2012.

Furthermore, board member, Freddy Frandsen, informed the Board that he will not stand for re-election. The remaining board members elected by the annual general meeting have all informed the Board that they will stand for re-election.

Vestas said that its 2011 results were "substantially lower than original expectations," causing its shares to drop more than 13 percent to 58 kroner ($10.27) in Copenhagen.

Revenue was €5.8 billion ($7.63 billion), which Vestas said was €1.2 billion ($1.97 billion) lower than the original forecast and 16 percent lower than in 2010.

Sluggish sales have already forced the company to slash its 2012 forecasts twice. It has also abandoned its targets for 2015 sales of €15 billion ($19.1 million) and profit margin of 15 percent.

In January, the Danish turbine maker announced it would lay off 2,335 people worldwide and that 1,600 U.S. jobs would be at risk if Congress failed to extend tax breaks for renewable energy.

Over 41 GW of new wind power was installed in 2011, up 21% from 2010, bringing the total to over 238 GW, says the Global Wind Energy Council (GWEC). Vestas China has received its first order for the low-wind V100 wind turbines from Datang.