Vestas Wind Systems A/S, the world’s largest wind turbine maker, was the biggest decliner on the OMX Copenhagen 20 index today after its main European rival said prices continue to decline.
Vestas fell as much as 3 percent, the most since Dec. 6. The stock of the Aarhus, Denmark-based company retreated 1.8 percent to 29.97 kroner at 11:16 a.m. in the Danish capital with trading volume at 24 percent of the three-month daily average.
Vestas is deepening job cuts to return to profitability as increased competition from China and lower government subsidies for green energy cap orders. Siemens AG executives, including Michael Suess, the head of the company’s energy unit, said late yesterday at an investor meeting that turbine prices are falling 4 percent to 5 percent.
The wind turbine industry suffers from overcapacity that is “limiting pricing power in a low growth environment,” JPMorgan Cazenove said in a note today. “The environment looks a lot more like the 1990s to us than the strong cycle in the last decade.”
Siemens said yesterday at its capital markets day in Charlotte, N.C., that the wind industry unit suffers from higher pricing pressure than its other energy divisions, which include power transmission and oil and gas.