Vestas plans 3,000 job cuts after Q3 profit falls

Vestas plans 3,000 job cuts after Q3 profit falls

Copenhagen: Vestas, the world’s largest wind turbine manufacturer, said on Tuesday it would axe 3,000 jobs and shut some plants to adjust to weaker demand, after it posted a smaller-than-expected drop in third-quarter profit.

Earnings before interest and tax at the Danish company fell to €185 million ($259.7 million) in the three months to end-September from 244 million in the same quarter last year.

The result beat an average forecast for a drop to €114 million in a Reuters poll of 17 analysts, whose estimates ranged from 58 million to 150 million.

“In 2011, the European market growth will...not live up to Vestas’ expectations, which is why Vestas is compelled to adjust its capacity in Europe," Vestas Wind Systems A/S said.

Vestas said it would book one-off costs -- mainly writeoffs of property, plant and equipment related to the job cuts -- of €140 million-160 million in the fourth quarter.

“Adjusted for the above, Vestas retains its expectations for 2010 as announced in August," Vestas said.