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Vestas set records in wind turbine orders in 2019, and this year looks even busier

Vestas’ worldwide profits in 2019 were flat compared to 2018 despite all the growth. The business’ profit margins actually declined 1.6% for the year, reflecting tough price competition in renewable energy and the effect of trade wars on its supply chain, the company said. Steel tariffs are still having a big impact on Vestas’ supply chain internationally, even though the U.S. and China has reached a first-phase trade agreement and international trade tensions have lessened.

But amid intense competition and trade wars, profitability isn't keeping pace.

Vestas Wind Systems ended 2019 strong, setting records in growth and orders and readying the wind turbine manufacturer for an even busier year meeting U.S. demand from its Colorado factories.

Vestas, the Danish company whose Vestas-American Wind Technology Inc. manufactures turbines at four plants in Colorado, reported earning $255 million pre-tax profit, based on current exchange rates, from $5.1 billion in fourth quarter revenue, a 38% jump in sales compared to the fourth quarter of 2018.

“We’ve just executed more or less flawlessly on a fourth quarter, at least on Vestas’ terminology” said Henrik Andersen, CEO and group president for Vestas worldwide. “Highest activity level ever — and there’s a lot of those practices that that we need to take with us into 2020.”

Vestas recorded the highest volume of orders in its history, logging turbine orders totaling 17.9 gigawatts of electrical generating capacity globally.

For the year, Vestas reported $999.7 million in full-year pre-tax profit from 2019 sales revenue that topped $13.3 billion, based on current exchange rates.

Deliveries in the... more [truncated due to possible copyright]  

But amid intense competition and trade wars, profitability isn't keeping pace.

Vestas Wind Systems ended 2019 strong, setting records in growth and orders and readying the wind turbine manufacturer for an even busier year meeting U.S. demand from its Colorado factories.

Vestas, the Danish company whose Vestas-American Wind Technology Inc. manufactures turbines at four plants in Colorado, reported earning $255 million pre-tax profit, based on current exchange rates, from $5.1 billion in fourth quarter revenue, a 38% jump in sales compared to the fourth quarter of 2018.

“We’ve just executed more or less flawlessly on a fourth quarter, at least on Vestas’ terminology” said Henrik Andersen, CEO and group president for Vestas worldwide. “Highest activity level ever — and there’s a lot of those practices that that we need to take with us into 2020.”

Vestas recorded the highest volume of orders in its history, logging turbine orders totaling 17.9 gigawatts of electrical generating capacity globally.

For the year, Vestas reported $999.7 million in full-year pre-tax profit from 2019 sales revenue that topped $13.3 billion, based on current exchange rates.

Deliveries in the Americas jumped 17% to 5.839 gigawatts electrical power generation in 2019, driven mainly by growth in the U.S., the company said.

That was coupled with nearly $5.8 billion in revenue from Western Hemisphere sales, a jump of 18% compared to the nearly $4.9 billion in 2018.

The company meets orders for wind turbines for U.S. wind farms from its Colorado manufacturing plants.

Vestas’ two factories in Brighton make turbine blades and nacelles, which house the turbine’s gearbox and power generator assembly. Vestas’ factory in Windsor makes turbine blades, and its Pueblo plant manufactures steel turbine towers.

The company added hundreds of jobs at its northern Colorado factories, pushing it above 3,700 employees on its payroll in the state.

Among the factors keeping its Colorado plants busy in 2020 is the extension of a federal tax credit on wind power systems. Producers of the energy can get a credit of up to 60% on projects installed by 2024, if the project is for the credit this year.

“It’s clearly favorable to the industry but also to the owners of the assets,” Andersen said.

Vestas’ worldwide profits in 2019 were flat compared to 2018 despite all the growth. The business’ profit margins actually declined 1.6% for the year, reflecting tough price competition in renewable energy and the effect of trade wars on its supply chain, the company said.

Steel tariffs are still having a big impact on Vestas’ supply chain internationally, even though the U.S. and China has reached a first-phase trade agreement and international trade tensions have lessened.

“We didn’t have any positive effect from that,” Andersen said.

Even so, Vestas forecasts 8% to 10% growth annually through 2023 and expects to see its worldwide base of installed, onshore turbines reach 557 gigawatts of electrical power capacity.

Looking ahead, trends over the next 15 years suggest wind and solar power will combine to be the largest source of electricity worldwide by 2035, generating 35% of electricity and outdistancing second-place coal.


Source: https://www.bizjournals.com...

FEB 6 2020
http://www.windaction.org/posts/50929-vestas-set-records-in-wind-turbine-orders-in-2019-and-this-year-looks-even-busier
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