Denmark’s wind energy company Vestas came out of 2012 with an overall loss
before tax of EUR 713 million or DKK 5.3 billion.
The company was expected to make a large loss in 2012, but CEO Ditlev Engel
seemed to see some optimism going forward.
“We have now overcome the first year, which as expected proved to be
challenging. However, Vestas generally succeeded in implementing a number of
initiatives in 2012 which makes us prepared for an even more challenging
2013,” Engel says in the report.
“The fourth quarter of 2012 is important because that was when the initiatives
we implemented started to materialise,” Engel says adding that the fourth
quarter of 2012 was the highest quarterly free cash flow recorded by the
company for five years.
Revenues for 2012 were at EUR 7,216.
As a result of waning earnings and a more conservative estimate of the future
market, Vestas has chosen in its 2012 accounts to introduce write-downs on
its long-term assets of more than EUR500 million.
The report says that in keeping with the company’s new business model, Vestas
wishes to sell off some of its assets.
“Some production plants have been re-classified as assets for sale, and are
expected to be sold off before next year,” the report says.
In its outlook for 2013, the accounts say that: “Shipments are expected to
decline to 4-5 GW compared to the previous guidance of around 5 GW. The
change is due to a weaker order intake than expected”.
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