Vestas invests

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Adam Barber
August 19, 2011
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This content is from our archive. Some formatting or links may be broken.
Vestas invests

Second quarter result from Vestas, released this week, have shown that the world’s largest turbine maker by market share continues to secure a healthy pipeline of orders. The company posted a first half increase in revenues to Euro 2.4billion, with profits up to Euro 8billion over the same period.

The accompanying analysis from Vestas Chief Executive Ditlev Engel, also made for interesting reading.

Overall, the business expects European demand to continue to rise, as, despite an uncertain financial climate, the binding low carbon targets to which European countries have signed up to mean that there is still much more to be done. The UK, which despite a number of cutbacks in the domestic economy has made financial commitments to wind energy was cited as an important area for growth.

And with moves in Germany towards the increasing use of renewables, Vestas expects to be able to play well, if not against some strong domestic competition, in the market.

Giving a break down on expected future earnings, Mr Engel said that he expects 25% of orders to come from the US, half from Europe and the remainder from Asia, suggesting he sees not insignificant opportunities for western manufacturers in China.

Given recent deals by XEMC and Sinovel, which saw Chinese manufacturers gaining an increasing foothold in Western geographies, a fact also acknowledged by Mr Engel, it's interesting that he still expects a fair amount of business to still flow from West to East. Previously, Mr Engel has stated that the business needs to be as competitive as ‘Asia plus freight’, which would suggest a challenge in winning business in this particular market.

And with the company increasingly hinting that it will press ahead with its new manufacturing facility in Kent if greater assurances are provided by the UK Government, it’s not a business afraid to use its results to its best advantage.

Second quarter result from Vestas, released this week, have shown that the world’s largest turbine maker by market share continues to secure a healthy pipeline of orders. The company posted a first half increase in revenues to Euro 2.4billion, with profits up to Euro 8billion over the same period.

The accompanying analysis from Vestas Chief Executive Ditlev Engel, also made for interesting reading.

Overall, the business expects European demand to continue to rise, as, despite an uncertain financial climate, the binding low carbon targets to which European countries have signed up to mean that there is still much more to be done. The UK, which despite a number of cutbacks in the domestic economy has made financial commitments to wind energy was cited as an important area for growth.

And with moves in Germany towards the increasing use of renewables, Vestas expects to be able to play well, if not against some strong domestic competition, in the market.

Giving a break down on expected future earnings, Mr Engel said that he expects 25% of orders to come from the US, half from Europe and the remainder from Asia, suggesting he sees not insignificant opportunities for western manufacturers in China.

Given recent deals by XEMC and Sinovel, which saw Chinese manufacturers gaining an increasing foothold in Western geographies, a fact also acknowledged by Mr Engel, it's interesting that he still expects a fair amount of business to still flow from West to East. Previously, Mr Engel has stated that the business needs to be as competitive as ‘Asia plus freight’, which would suggest a challenge in winning business in this particular market.

And with the company increasingly hinting that it will press ahead with its new manufacturing facility in Kent if greater assurances are provided by the UK Government, it’s not a business afraid to use its results to its best advantage.

Second quarter result from Vestas, released this week, have shown that the world’s largest turbine maker by market share continues to secure a healthy pipeline of orders. The company posted a first half increase in revenues to Euro 2.4billion, with profits up to Euro 8billion over the same period.

The accompanying analysis from Vestas Chief Executive Ditlev Engel, also made for interesting reading.

Overall, the business expects European demand to continue to rise, as, despite an uncertain financial climate, the binding low carbon targets to which European countries have signed up to mean that there is still much more to be done. The UK, which despite a number of cutbacks in the domestic economy has made financial commitments to wind energy was cited as an important area for growth.

And with moves in Germany towards the increasing use of renewables, Vestas expects to be able to play well, if not against some strong domestic competition, in the market.

Giving a break down on expected future earnings, Mr Engel said that he expects 25% of orders to come from the US, half from Europe and the remainder from Asia, suggesting he sees not insignificant opportunities for western manufacturers in China.

Given recent deals by XEMC and Sinovel, which saw Chinese manufacturers gaining an increasing foothold in Western geographies, a fact also acknowledged by Mr Engel, it's interesting that he still expects a fair amount of business to still flow from West to East. Previously, Mr Engel has stated that the business needs to be as competitive as ‘Asia plus freight’, which would suggest a challenge in winning business in this particular market.

And with the company increasingly hinting that it will press ahead with its new manufacturing facility in Kent if greater assurances are provided by the UK Government, it’s not a business afraid to use its results to its best advantage.

Second quarter result from Vestas, released this week, have shown that the world’s largest turbine maker by market share continues to secure a healthy pipeline of orders. The company posted a first half increase in revenues to Euro 2.4billion, with profits up to Euro 8billion over the same period.

The accompanying analysis from Vestas Chief Executive Ditlev Engel, also made for interesting reading.

Overall, the business expects European demand to continue to rise, as, despite an uncertain financial climate, the binding low carbon targets to which European countries have signed up to mean that there is still much more to be done. The UK, which despite a number of cutbacks in the domestic economy has made financial commitments to wind energy was cited as an important area for growth.

And with moves in Germany towards the increasing use of renewables, Vestas expects to be able to play well, if not against some strong domestic competition, in the market.

Giving a break down on expected future earnings, Mr Engel said that he expects 25% of orders to come from the US, half from Europe and the remainder from Asia, suggesting he sees not insignificant opportunities for western manufacturers in China.

Given recent deals by XEMC and Sinovel, which saw Chinese manufacturers gaining an increasing foothold in Western geographies, a fact also acknowledged by Mr Engel, it's interesting that he still expects a fair amount of business to still flow from West to East. Previously, Mr Engel has stated that the business needs to be as competitive as ‘Asia plus freight’, which would suggest a challenge in winning business in this particular market.

And with the company increasingly hinting that it will press ahead with its new manufacturing facility in Kent if greater assurances are provided by the UK Government, it’s not a business afraid to use its results to its best advantage.

Second quarter result from Vestas, released this week, have shown that the world’s largest turbine maker by market share continues to secure a healthy pipeline of orders. The company posted a first half increase in revenues to Euro 2.4billion, with profits up to Euro 8billion over the same period.

The accompanying analysis from Vestas Chief Executive Ditlev Engel, also made for interesting reading.

Overall, the business expects European demand to continue to rise, as, despite an uncertain financial climate, the binding low carbon targets to which European countries have signed up to mean that there is still much more to be done. The UK, which despite a number of cutbacks in the domestic economy has made financial commitments to wind energy was cited as an important area for growth.

And with moves in Germany towards the increasing use of renewables, Vestas expects to be able to play well, if not against some strong domestic competition, in the market.

Giving a break down on expected future earnings, Mr Engel said that he expects 25% of orders to come from the US, half from Europe and the remainder from Asia, suggesting he sees not insignificant opportunities for western manufacturers in China.

Given recent deals by XEMC and Sinovel, which saw Chinese manufacturers gaining an increasing foothold in Western geographies, a fact also acknowledged by Mr Engel, it's interesting that he still expects a fair amount of business to still flow from West to East. Previously, Mr Engel has stated that the business needs to be as competitive as ‘Asia plus freight’, which would suggest a challenge in winning business in this particular market.

And with the company increasingly hinting that it will press ahead with its new manufacturing facility in Kent if greater assurances are provided by the UK Government, it’s not a business afraid to use its results to its best advantage.

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Become a member of the 6,500-strong A Word About Wind community today, and gain access to our premium content, exclusive lead generation and investment opportunities.