Vestas says that it has delivered on the main focus areas of the turn-around programme instigated two years ago to rescue it from financial disaster.
The wind turbine company has reported its first quarterly profit in two and a half years and has announced plans to issue new shares to raise fresh capital.
Vestas reported that it has reduced fixed costs by €484 million compared to the fourth quarter of 2011, while net investments fell by more than €500 million to €239 million.
In the fourth quarter of 2013, Vestas made a net profit of €218 million, compared with a loss of €618 million a year earlier. The company says that revenues amounted to €6084 million in 2013, 16 per cent lower than in 2012, but that it expects revenues to reach a minimum of €6000 million in 2014.
Vestas has also announced plans to issue 20 million new shares, the net proceeds of which will be used to give the firm greater financial flexibility and enhance its financial stability. It said in a statement that the capital increase would "facilitate the generation of additional business opportunities" and accelerate its strategy "of delivering profitable growth".
Vestas came close to financial ruin in 2011 after an ill-timed expansion plan coincided with increased competition in the wind energy sector. It implemented a plan to turn its fortunes around by cutting costs and reducing its workforce by one-third.
"A double-digit EBIT margin in the fourth quarter and a free cash flow generation of more than €1bn in 2013 are major achievements for Vestas and our dedicated employees," said Anders Runevad, Group President & CEO of Vestas. "Yet, the satisfactory completion of the two-year turnaround is at least as important as it creates a solid starting point for the future strategy for Vestas, where Vestas will continue to focus on profitable growth."
Sian Crampsie
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