Wednesday, 4 January 2012

Vestas, the world´s biggest wind-turbine maker, plummets

The rapid decline of the wind-turbine industry continues. Today Vestas, the world´s biggest wind-turbine maker, closed down 19 percent after it became known that the company reduced its revenue and profit outlook for the second time in two months:

Vestas, whose shares have lost 92 percent from a 2008 high, blamed higher costs and delayed wind farms, helping drive down shares in rivals Gamesa Corp. Tecnologica SA of Spain and India’s Suzlon Energy Ltd. Its plan to unveil a restructuring on Jan. 12 without giving a hint of its nature left analysts questioning management’s credibility.
Vestas and U.S. rival General Electric Co. are suffering from slower demand growth and narrowing margins caused by subsidy cuts in Europe and rising competition from Asian turbine makers such as China’s Sinovel Wind Group Co., the world’s second biggest, according to a BTMS Consult ranking.

Read the entire article here

The decline of the wind-turbine makers is another blow to the "progressive" "green jobs" politicians, who do not seem to comprehend that there is no future for an industry that relies almost solely on subsidies for its profitability. However, when the shale gas revolution hits the energy markets with full force, even the last supporters of subsidised wind power will have to face reality ....

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