Vestas cutting 3,000 jobs in Europe
By Erik Siemers, Business Journal Staff Writer
Business Journal Staff Writer
Wind turbine giant Vestas Wind Systems A/S on Tuesday said it will cut 3,000 jobs after concluding that 2011 market growth won’t live up to expectations.
The cuts, however, appear limited to Europe.
Vestas' North American operations, which in early 2012 plans to move to a new headquarters in the Pearl District, will be unaffected by the news, said company spokeswoman Aili Jokela.
Randers, Denmark-based Vestas said third-quarter sales fell 5 percent to $2.4 billion. Though it was profitable, its margins fell to 10.7 percent from 13.5 percent a year ago.
Through nine months, Vestas intake, or orders, totaled 6,567 megawatts, the highest level recorded. Its order backlog at the end of the third quarter amounted to 5,884 megawatts, valued at nearly $8 billion.
While 2010 is turning out to be a strong year, the company’s initial optimism for 2011 has faded.
That’s particularly true for Europe, where Vestas will now adjust its production capacity to meet a market the company said will "not live up to expectations."
The company will close down several factories, mostly in Denmark, where its costs are highest. The cuts will lead to between $194 million to $222 million in one-off costs, mostly in write-downs of property, plant equipment and costs associated with layoffs.
email@example.com | 503.219.3438
If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.