Vestas to cut 1,400 jobs and outsource more

Wind turbine manufacturer Vestas is to cut a further 1,400 jobs. The firm said the move was in order to ensure it was profitable in 2013. The company also aims to outsource more of its production.

Vestas said revenues for the second quarter of 2012 were up 15 per cent year on year to Euros 1.6 billion but earnings before interest and taxes and special items fell by almost half to Euros 40 million. Cash flows were significantly lower and net debt was 7 per cent higher at Euros 1.15 billion.

The company said it had a record combined backlog of turbine orders and service agreements of Euros 14.4 billion at the end of June 2012. However, a lower order intake compared to the same period last year and delays of grid connections in China led the company to cut its full year shipment forecast 10 per cent to 6.3GW. The company said it expects to ship 5GW in 2013 and would cut 1,400 to ensure profitability. The job cuts should save Euros 250 million.

Vestas also said it would outsource more of its production and that it would try to involve suppliers in larger parts of the supply chain than at present.