The credit crisis has prompted banks to restrict loans to wind-park developers that buy turbines from Vestas and rivals such as Germany’s Siemens AG, Gamesa Corp. Tecnologica SA of Spain and General Electric Co. The 3,000 job cuts will come mainly in Denmark where costs are highest, and some factories will be shut because of lower European demand, Vestas said.
“The limited information that the company provides for its 2011 guidance doesn’t bode well,” Christian Nagstrup, an analyst with Silkeborg, Denmark-based Jyske Bank A/S, said today in a note to investors. He has a “buy” rating on the shares.
Net income in the third quarter fell to 126 million euros ($176 million) from 165 million euros a year earlier. Sales declined 5.1 percent to 1.72 billion euros.
The stock fell as much as 9.8 percent, the most since Aug. 18. It traded at 189 kroner, down 5.5 percent, at 11:21 a.m. local time, bringing its annual decline to 40 percent compared with a 5.6 percent gain in the Bloomberg European 500 Index.
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Source: www.businessweek.com