Senvion says it will implement a new transformation plan to stabilize its financial position and eliminate the inefficiencies that caused the recently-reported loss of revenues and profits.
The Germany-based wind turbine manufacturer has completed a comprehensive review of its business and says that although it has a strong order book, it cannot afford to make mistakes because of the challenging market conditions in the wind energy sector.
“We have a strong order book, a great market position and products which our customers like. But we made operational mistakes in a challenging market environment and now need to focus on execution and on strengthening our customer focus,” said CEO Yves Rannou.
“We have taken swift action to fix execution weaknesses both in terms of our project management as well as strengthening of regional teams in order to recover the lost revenues and profits as quickly as possible,” said Rannou who took over as CEO at the beginning of January. “We have a strong firm order book of almost €5 billion, a great market position and excellent products which our customers like.
“But we made operational mistakes in a challenging market environment and now need to focus on execution and on strengthening our customer focus.”
Senvion adjusted its guidance for the financial year 2018 to reflect lower than expected revenues and profits, mainly as a result of delayed installations. Its transformation plan gives it a clear roadmap to get the business back on track in the medium term, it said.
The transformation plan will focus on four major areas of improvement: a refocus on attractive markets, streamlining its product portfolio, efficiency savings in the supply chain, and cooperating with lenders to strengthen Senvion’s financial base.
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