Wednesday announced its 2015 targets will be abandoned as the wind turbines maker posted a third quarter net loss, and said it will cut costs and downsize its work force to counter difficult market conditions.

Renewable energy is still heavily dependent on state-backed subsidies and as European leaders are busy tackling their mounting debts, the industry faces a tough future and Vestas is not the only player struggling. Norway 's solar power equipment maker Renewable Energy Corp. (REC.OS) is now also loss-making.

Anticipating weak growth in the Organization for Economic Cooperation and Development area, Vestas said it won't reach its 'Triple 15' target of EUR15 billion in revenue and an EBIT margin of 15% in 2015.

"We have satisfied customers, all of our production units are extremely busy, and we recorded a strong order intake in October. However, we believe that at least the Western economies are heading for even more economic difficulties in the years ahead," Chief Executive Ditlev Engel said in a statement.

Vestas also said it aims to reduce its fixed costs globally by at least EUR150 million annually by the end of 2012, which will lead to redundancies across the firm next year. The firm said it will implement a new organization on 8 Feb., 2012 .

Furthermore, the company flagged that 2013 could prove a very challenging year due to the potential expiry of a production tax credit scheme in the US . Should the US scheme not be extended beyond 2012, the firm will have to make further adjustments to its work force.

At 0929 GMT shares traded 1.6% lower at DKK81.00, compared with a 0.4% increase in the wider Copenhagen market.

"It's important that Vestas management see reality and the challenging future they face," said analyst Michael Friis Jorgensen at Alm. Brand Markets. "This is something that the investor community has really asked for."

In the medium term, Vestas now aims to realize a high single-digit margin on earnings before interest and taxes and at the same time increase its market share. Service revenues are seen growing faster than sales of wind power plants.

With troubles commissioning a factory in Germany , Vestas October warned on its full year earnings and posted preliminary third quarter figures. The company said Wednesday that the 2011 guidance it then gave is still valid and sees full year sales at EUR6.4 billion with a margin on earnings before interest and taxes of 4%.

The German plant is expected to be fully commissioned in the beginning of 2012.

For the period July to September, the firm posted a net loss of EUR60 million, compared with a profit of EUR187 million a year earlier, while revenue amounted to EUR1.34 billion, down from EUR1.92 million.

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