Shares in wind turbine manufacturer Vestas dropped by more than 20% this morning on the Copenhagen stock exchange as the company were forced to announce huge profit losses as a result of delays to the construction of a new factory.
The company have reduced their 2011 profit estimations from €7bn to around €6.4bn. The company decided to postpone a number of projects in order not to compromise on safety issues. A new generator factory in Travemünde, Germany, won’t be completed on time and as a result has delayed the delivery of a number of projects.
Ditlev Engel, President and CEO of Vestas Winds Systems A/S said: “I deeply regret that we have been compelled to take this unsatisfactory decision. I want to stress that safety and quality has top priority in Vestas and a decision to speed up the projects in question would have been irresponsible. The projects will of course be completed during 2012, and it is important also to point out that earnings on the individual projects are still satisfactory.”