Danish wind turbine manufacturer Vestas has issued a warning on profits, blaming the delayed commissioning of a new generator factory in Germany.
The firm said the building of its factory in Travemünde was not progressing as planned and that it had chosen to postpone a number of projects, primarily in Europe.
As a result, expectations for revenue for 2011 were reduced to £5.6billion, from £6.1billion previously.
In 2010 the firm posted revenue of £6billion.
Ditlev Engel, president and chief executive of Vestas Winds Systems said: “Even though we have previously emphasised the risks involved in the fact that a large proportion of revenue is generated in the latter part of the year, I deeply regret that we have been compelled to take this unsatisfactory decision.
“I want to stress that safety and quality has top priority in Vestas and a decision to speed up the projects in question would have been irresponsible.
“The projects will, of course, be completed during 2012 and it is important also to point out that earnings on the individual projects are still satisfactory.”
The firm also said it would also have costs of about £30.7million in 2011, primarily due to liquidated damages and agreements already made in relation to production, transportation and installation.
Vestas said that for 2011, it still expects an order intake of 7,000-8,000 megawatts, a positive free cash flow and investments of £747million.
But it added: “The aforementioned risks of disruptions in production and not least the practical challenges in relation to installation of turbines during the last months of the year, like for instance weather risks, lack of grid connections and corresponding incidences, may still cause further delays affecting results for 2011.”
Losses after tax for the first nine months were £79million, compared to profits of £4.3million in the same period in 2010.
According to a recent report by Simmons and Company International, Vestas’ market share increased to 14.8% in 2010, from 12.5% in 2009, but it was still drastically down from its 34% share in 2004.
Vestas is one of the firms which has joined an industry-led taskforce set up to help reduce the reduce the cost of offshore wind.
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