Vestas released the Interim financial report for Q3 2010. Vestas generated third-quarter revenue of € 1,722 million against € 1,814 million in the year-earlier period. EBIT margin was 10.7 per cent, against 13.5 per cent in the third quarter of 2009. Net working capital stood at 25 per cent of expected annual revenue, and the free cash flow was € 180 million against € (203) million in the third quarter of 2009.
During the first nine months, Vestas' intake of firm and unconditional orders amounted to 6,567MW. At the end of the quarter, the order backlog amounted to 5,884MW with a value of € 5.7 billion. In 2011, the European market growth will, however, not live up to Vestas' expectations, which is why Vestas is compelled to adjust its capacity in Europe. To ensure the most efficient production, Vestas has decided to initiate negotiations with the relevant parties in relation to closing down of a number of factories, primarily in Denmark, where costs are highest. In addition to this, a number of administrative functions will be adjusted at several locations in and outside Denmark. In total, around 3,000 jobs will be abolished in connection with the adjustments. In the fourth quarter of 2010, an amount of € 140-160 million will be expensed as “one-off costs” (exceptional operating items) in the income statement, which primarily will consist of write-downs of property, plant and equipment and costs in relation to lay-offs of employees.
During the first nine months, Vestas' intake of firm and unconditional orders amounted to 6,567MW. At the end of the quarter, the order backlog amounted to 5,884MW with a value of € 5.7 billion. In 2011, the European market growth will, however, not live up to Vestas' expectations, which is why Vestas is compelled to adjust its capacity in Europe. To ensure the most efficient production, Vestas has decided to initiate negotiations with the relevant parties in relation to closing down of a number of factories, primarily in Denmark, where costs are highest. In addition to this, a number of administrative functions will be adjusted at several locations in and outside Denmark. In total, around 3,000 jobs will be abolished in connection with the adjustments. In the fourth quarter of 2010, an amount of € 140-160 million will be expensed as “one-off costs” (exceptional operating items) in the income statement, which primarily will consist of write-downs of property, plant and equipment and costs in relation to lay-offs of employees.
