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Vestas cuts 800 North American jobs as orders slow
Yahoo ^ | 10/12/12 | Reuters

Posted on 10/12/2012 2:56:56 PM PDT by mdittmar

COPENHAGEN (Reuters) - Danish wind turbine maker Vestas said the impending expiry of a U.S. tax credit had exacerbated a fall in orders for next year, forcing it to make more than 800 job cuts in the United States and Canada so far this year.

With the Production Tax Credit (PTC) on renewable energy set to expire at the end of the year, Vestas Wind Systems A/S had previously said it could be forced to lay off a total of 1,600 employees in North America if the scheme is not renewed.

Vestas, which is battling the effects of government austerity measures in various countries, said the 800 staff cuts so far this year represented 20 percent of its North American workforce.

(Excerpt) Read more at news.yahoo.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS:
The group told analysts and investors in briefings on Wednesday it would stop non-profitable projects as it battles worsening prospects, aiming to lift its operating margin to high single-digits in the medium term.

Um,why would you start a non-profitable project?

1 posted on 10/12/2012 2:56:59 PM PDT by mdittmar
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To: mdittmar

“.....it could be forced to lay off a total of 1,600 employees in North America if the scheme is not renewed.”

Perfectly appropriate word, “scheme”.


2 posted on 10/12/2012 3:04:25 PM PDT by Holly_P
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To: mdittmar
The group plans to shift focus increasingly to emerging markets in a bid to regain growth and offset cooling demand in mature Europe and United States markets.

Translated: We've duped all of the big leaguers of their nation's treasure and are now moving on to those countries that can sucker the UN anf IMF to fund the grandiose failures.

3 posted on 10/12/2012 3:06:50 PM PDT by RobertClark (Be prepared, be polite, be professional and have a plan to kill everyone you meet.)
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To: mdittmar

Lowering their profit expectations, just as the oil companies have done forever (planning price). They are betting that the PTC will be renewed, but while I’m a fan of utility-scale wind production I hope it isn’t. Removing the subsidy will incent the industry to develop solutions that can achieve price parity based on technological innovations rather than creating artificial price supports that prolong less efficient designs. Most experts feel this is possible.


4 posted on 10/12/2012 3:52:48 PM PDT by bigbob
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To: bigbob

If they remove the government support/handout, the wind energy scam ends.


5 posted on 10/12/2012 4:19:08 PM PDT by 9422WMR (Life is not fair, just deal with it)
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