Vestas ousts its chief executive as losses mount

Marion Dakers
TROUBLED wind farm manufacturer Vestas axed its chief executive yesterday after he struggled to stem losses or win back investors.

Shares in the Danish company jumped five per cent after it revealed that Ditlev Engel will leave immediately, to be replaced by Ericsson veteran Anders Runevad on 1 September.

Engel, who had been with the firm since 2005, has spent the last 18 months attempting to get the firm back on an even keel.

But Vestas yesterday posted a 26 per cent slump in revenues to €1.185bn (£1bn) and a pre-tax loss of €38m for the second quarter of the year.

The firm produced 47 per cent fewer turbines and cut its employee headcount by a fifth to 17,253.

But Vestas also raised its expectations for free cashflow this year of around €200m.

The company is facing down complaints from shareholders, including last week’s lawsuit launched by a group of investors claiming the firm should have issued profit warnings earlier.