Vestas Wind Systems A/S (VWS.KO) Wednesday named Anders Runevad as chief executive, replacing long-standing CEO Ditlev Engel, in the latest upheaval in the boardroom of the unprofitable Danish wind-turbine maker, the world's biggest by sales.
Vestas Wind Systems A/S (VWS.KO) Wednesday named Anders Runevad as chief
executive, replacing long-standing CEO Ditlev Engel, in the latest upheaval in
the boardroom of the unprofitable Danish wind-turbine maker, the world's
biggest by sales.
The announcement of Mr. Engel's departure after eight years as CEO came as
Vestas said its net loss widened to 62 million euros ($83.2 million) in the
second quarter, from a loss of EUR8 million a year earlier, following a 26%
decline in revenue to EUR1.19 billion.
Mr. Runevad, 53, is due to start in his new role on Sept. 1. He is a former
executive of Swedish telecommunications equipment maker Ericsson.
Vestas is struggling to bring its costs down faster than revenue is falling. Recent
demand for wind turbines has been volatile, as many governments have had second
thoughts on the scale of renewable-energy subsidies and competition from lower-cost
Asian rivals has been fierce.
Mr. Engel, 49, oversaw a drastic restructuring program since Vestas came close
to financial collapse last year. The program has led to the renegotiation of
the company's bank debt and a shake-up of its top management, involving the
departure of its chairman, deputy chairman and two chief financial officers.
Vestas has eliminated more than 6,000 jobs in the past three years, cut back
capital spending in part by abandoning the development of new turbine
platforms, and streamlined its production processes, enabling it reduce its
cash burn in the second quarter. The company generated free cash flow of EUR197
million in the period, compared with an outflow of EUR338 million a year
earlier. Vestas forecasts cash flow of at least EUR200 million for the full
year.
The company, which now employs around 17,000 people, warned that it plans to
eliminate a further 1,000 jobs as it targets "a high-single-digit"
operating profit margin in the medium term subject to a "normalized" U.S.
market. For the full year, Vestas forecasts an operating profit margin of just
1% on revenue of EUR5 billion, due in part to an expected recovery in the U.S.
American customers were responsible for nearly 25% of the 6,039 turbines Vestas
delivered in 2012, but just nine out of 877 turbines delivered in the second
quarter.
"The company is now entering a new phase, where we want to realize our
growth potential, and I am confident that Mr. Runevad has the right experience
to lead the company," said Chairman Bert Nordberg, also a former Ericsson
executive. Neither Mr. Nordberg nor Mr. Runevad were immediately available to
comment further.
While struggling to buck the decline in revenue, Vestas's orders are still
growing and its finances are stabilized for now. The company said its
second-quarter order intake was EUR1.7 billion, compared with EUR0.9 billion a
year earlier.
Vestas clinched a new deal with creditors last November, agreeing to a revised
EUR900 million syndicated loan facility from a group of nine international
banks, replacing a EUR1.3 billion facility. The agreement removed immediate
concerns that the company might have to tap shareholders for more funds.
Vestas also on Wednesday said it has decided not to sell its tower factory in
Pueblo
,
Colo.
The
company still expects to sell machining and casting units but, based on ongoing
negotiations with potential buyers, their value has been further written down,
it said.
Διαβάστε ακόμα
Παρ, 26 Ιουλίου 2024 - 16:04
Παρ, 26 Ιουλίου 2024 - 16:02
Τετ, 24 Ιουλίου 2024 - 15:10
Τετ, 24 Ιουλίου 2024 - 15:06
Τρι, 23 Ιουλίου 2024 - 16:51