Vestas Advances to Three-Month High

18 August 2009 (Last Updated August 18th, 2009 18:30)

Danish wind turbine manufacturer Vestas Wind Systems advanced to a three-month high in trading after keeping its full-year outlook and saying the impact of the credit crisis is waning. Vestas rose as much as 6% to 416.5 kroner, the highest intraday price since 25 May, after reiterating

Danish wind turbine manufacturer Vestas Wind Systems advanced to a three-month high in trading after keeping its full-year outlook and saying the impact of the credit crisis is waning.

Vestas rose as much as 6% to 416.5 kroner, the highest intraday price since 25 May, after reiterating its €7.2bn ($10.2bn) sales forecast, writes Bloomberg.

“Global government incentives for renewable-energy production are starting to have a positive effect on the wind power industry,” Vestas representatives stated.

Vestas said that it has a €700m order intake with unvaried payment structures since the reporting period ended. The company has over €4.4bn worth of contracts waiting for assessment.

Profits have also decreased due to severance payments incurred as Vestas laid off 425 people in the UK and 1,142 people in Denmark.

The company has also been embroiled in controversy following an 18-day protest by workers at a Vestas factory on the Isle of Wight, England. Vestas Wind Systems ceased blade production at the site and in Southampton, resulting in 425 employees being made redundant.