Vestas Falls as Markets Day Fails to Deliver: Copenhagen Mover
Vestas Wind Systems A/S (VWS), the world’s biggest wind-turbine maker, fell the most in three weeks in Copenhagen trading after failing to convince investors at a capital markets day of its plans to resurrect the company.
Vestas shares fell as much as 6.7 percent, the most since Sept. 13. The stock declined 4.9 percent to 38.01 kroner at 11:29 a.m. in the Danish capital, making it today’s biggest loser in the OMX Copenhagen 20 Index.
Some analysts tracking Vestas had expected the company to use today’s capital markets day to deliver a clear message on how it will face increased competition from Chinese rivals just as European and U.S. governments plan to cut green energy subsidies. Haakon Levy, an analyst with DNB Markets, advised investors on Sept. 24 to hold onto the stock because it might rise on the capital market’s presentation.
“Margins and pricing continue to remain pressured across the sector which, along with policy uncertainty such as the renewal of the U.S.’s production tax credit, have weighed on the wind industry,” James Evans, solar and wind analyst at Bloomberg Industries, said in an interview.
Order intake is slowing, Chief Executive Officer Ditlev Engel said today in his presentation.
Vestas reported yesterday that two unauthorized deals in India by a former chief financial officer may cost the Aarhus, Denmark-based company as much as 18 million euros ($23 million). Vestas canceled its severance agreement with Henrik Noerremark and said it may pursue legal action against the former executive.
To contact the reporter on this story: Peter Levring in Copenhagen at firstname.lastname@example.org