The CEO Ditlev Engel of Vestas has yet again failed to meet the targets he and his management team have set for the company. While Vestas made the target of securing orders for over 7000 MW it failed to control costs in other parts of the company.
The Wind turbine manufacturer has once again disappointed investors with a noticeable downward adjustment because of delays and excessive extra costs compared to planned.
The revision of expected earnings of 255 million. euro to around zero enforces the sentiment among Vestas investors and analysts that there are management issues at Veatsas. Ditlev Engel acknowledges flatly that it is not good enough. “It is the second time within a short time that the introduction of new technology creates problems. It is obviously not good enough,” he says to epn a Danish business newspaper.
Basically this means that the Vestas stock is about to take another big hit within the next few days. In the past 52 weeks the stick has lost 60% of its value moving from a high of 232 down to 69 kr per share. And with the latest proclamation there is no reason to think that it will not fall even further.
According to Vestas are the problems associated with new technology for their V112-3.0 MW mill. and higher than expected costs of production. This should be seen in light that just a few months ago the company fired 3000 employees in Denmark.