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 Βουλγαρία: Το Εργοστάσιο που Μετατρέπει τα Αστικά Λύματα σε Ενέργεια Τετ, 28 Αυγούστου 2024 - 17:40 Nexans: Τελεσίγραφο στον ΑΔΜΗΕ για τον Great Sea Interconnector Τετ, 28 Αυγούστου 2024 - 16:00 Βρετανία: Εταίρος και Όχι Μέλος της ΕΕ - Ο Στάρμερ Βάζει Τέλος στα Σενάρια Επιστροφής Τετ, 28 Αυγούστου 2024 - 15:40 Οι Ευρωπαίοι Στρέφονται στα Μεταχειρισμένα Ηλεκτρικά Οχήματα Τετ, 28 Αυγούστου 2024 - 15:20 Lightsource BP: Ολοκλήρωσε και Πούλησε Ηλιακό Έργο στο Ηνωμένο Βασίλειο Τετ, 28 Αυγούστου 2024 - 13:00
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