Vestas, the world’s largest wind turbine maker, reported a 34% drop in profits for the second quarter this morning, but it sees better times in the near future.
Despite a rough first half, the company reiterated its full year guidance. It expects to earn $10.13 billion (7.2 billion euro) for 2009. This is above the revenue expected by analysts polled by Bloomberg who saw revenue coming in at $9.14 billion (6.5 billion euro).
The profit decline was led largely by severance payments for 1,567 employees the company cut in Northern Europe and the U.K. Sales were up 11% on a year over year basis from $1.54 billion (1.1 billion euro) to $1.68 billion (1.2 billion euro).
As far as the wind industry at large is concerned Vestas has two bits of good news. It says the credit crisis waning. Government initiatives are starting to take hold, and “several new banks and financing institutions have come onto the market,” which is making it easier to get orders in place from customers.
The other bit of good news from the turbine giant: Component prices peaked in 2008, and aren’t expected to rise in 2009.
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